The headlines are ugly. April’s Consumer Price Index (CPI) report showed prices rising 3.8% over the past year — the worst reading since May 2023. April’s Producer Price Index (PPI) release was uglier still. Producers’ prices jumped 1.4% in a single month, the biggest leap since March 2022.

That’s brutal news for anyone carrying a mortgage, a car loan, or a credit card balance.

But here’s what nobody on cable news is telling you: If you’re a saver, you’re winning right now. Big time. And if you sit on your hands, you’re leaving real money on the table.

When borrowers cry, savers should be celebrating. Here are five reasons why.

1. Your savings account can finally pay you real money

The national average savings rate is a pathetic 0.38%, according to the FDIC. That’s what most Americans get because they park cash at a big-name brick-and-mortar bank for years and never move it.

Meanwhile, online banks are paying around 4% APY (annual percentage yield) — sometimes more. That’s more than 10 times the national average. On a $50,000 balance, the gap between 0.38% and 4% adds up to roughly $1,810 a year. Savers at every income level are quietly making the switch, and you should too.

You can find a list of high-paying savings accounts here.

If your bank statement shows a savings rate that starts with a zero, change banks tonight.

2. CDs let you lock in today’s rates before the next Federal Reserve cut

If you think rates may drop again, you can lock them in with a certificate of deposit, or CD. They range in duration from one to five years or even longer.

Five-year CDs are in the 4.15% to 4.18% range. Check out a CD comparison page here.

A CD locks in your yield for the full term. If rates fall to 3% in 2027, your money keeps earning 4%+ until the CD matures. That’s the whole point.

The trade-off: Your cash is locked up. Yank it early and you’ll pay a penalty. So use CDs only for money you won’t need before the term ends.

3. Treasury bonds are paying their best yields in nearly a year

The 10-year Treasury yield jumped to 4.49% in mid-May — the highest since mid-July of last year. The 30-year Treasury bond crossed 5%. The two-year is right around 4%.

Why should you care? Because you can buy Treasury bonds directly from Uncle Sam with no commission, no middleman, and zero risk of default. Just head to TreasuryDirect.gov.

Interest on Treasuries is also exempt from state and local income tax. If you live in a high-tax state like California or New York, that boost can be worth another half a percent or more on your effective yield.

Buy a 30-year bond at 5%, and you’ll get paid 5% for the next three decades. That’s a real deal — especially if you think rates are eventually headed lower. Keep in mind, however, that if rates rise and you need to sell your existing 5% bond, it will go down in value.

That’s why it’s a good idea to create a ladder of CDs and bonds: some coming due soon, some mid-range, and some longer range. That way, if rates rise, you’ve got some money coming due soon to take advantage. If they drop, you’ve got some locked in.

Quick aside — most internet financial advice comes from people who weren’t alive during the last recession. I’ve been writing about money for more than 40 years. Want rock-solid advice? Sign up for the free Money Talks Newsletter. Takes 10 seconds. No fluff. No spam.

4. I bonds are paying 4.26% — with a built-in inflation hedge

Worried inflation will quietly eat your savings alive? Series I savings bonds are made for exactly this moment. They’re issued by the U.S. Treasury, and the rate adjusts every six months based on the CPI.

The current composite rate for I bonds bought between May 1 and October 31 is 4.26%. That includes a 0.90% fixed portion you lock in for the bond’s full 30-year life.

The inflation portion resets in November. If inflation keeps climbing, your yield rises with it. If inflation cools, your rate falls, but it can never drop below zero.

There’s a catch: You can buy no more than $10,000 of I bonds per person per year, and you must hold them at least 12 months. Redeem before five years and you forfeit the last three months of interest.

Even so, it’s hard to find a safer inflation hedge, and we cover the rest of the fine print in “7 Things You Should Know Before Investing in I Bonds.”

5. Watch for a serious bump in your Social Security check

Social Security cost-of-living adjustments (COLA) are tied directly to inflation — specifically, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). And the CPI-W just rose 3.9% over the past year.

Earlier this spring, analysts were forecasting a 2027 COLA of only about 2.8%. Then the Iran conflict spiked oil prices, gasoline climbed past $4.50 a gallon, and the forecasts shot up overnight.

The Senior Citizens League now estimates a 3.9% COLA for 2027. Independent analyst Mary Johnson puts the figure at 4.2%. That would lift the average retiree’s monthly check by roughly $80, about $960 a year.

Higher grocery and fuel bills will swallow part of that raise, sure. And a few ugly truths about how the COLA actually works mean retirees often see less of it than they expect. But the official COLA still gets locked into your benefit base for life. And if you haven’t started collecting yet, every dollar added today compounds for decades.

The final 2027 number won’t be announced until October, after the Social Security Administration looks at average CPI-W readings from July, August, and September. But the trajectory is clear, and it’s working in retirees’ favor.

The bigger picture

When inflation rises, the Fed usually responds by holding rates higher for longer or even hiking again. Right now, futures markets put the odds of another Fed rate hike before year-end at roughly 30%.

That’s terrible news for anyone with a variable-rate loan or a credit card balance. Average credit card rates are still well north of 20%.

But for a saver — for somebody with cash in the bank, a CD ladder, or a Treasury portfolio — every uptick in rates is a raise.

The financial press will keep pumping out doom stories about inflation. Tune some of it out. Move your cash where it actually earns something. Buy a CD or two. Grab an I bond. And if retirement’s on the horizon, remember: that COLA bump is real money.

Inflation will eventually cool. The Fed will eventually cut. The window to lock in 4% or more won’t stay open forever.

If you’re a saver, the time to act is now.