The surge in inflation that occurred in recent months could lead to a larger-than-usual cost-of-living adjustment (COLA) for Social Security recipients. That was the big takeaway after a report released last week forecasted a potential COLA worth nearly 4%. Projections earlier in 2026 from the Senior Citizens League, an advocacy group for older Americans, sat between 2% and 3%. A 3.9% upward adjustment, however, would add approximately $80 to the average monthly check, bringing it to around $2,150. That's designed to keep pace with inflation, which surged in March and April and now sits at its highest level in about three years.

But while the next formal COLA announcement won't be released until October 2026 (for 2027), there are still multiple ways in which recipients – and all savers – can earn an interest rate of 4% or more on their money right now. Some of the options will even allow savers to maintain access to their funds while still effectively taking advantage of today's elevated interest rate climate. 

So, how can these savers start earning 4% or more on their money now? And how should they protect those funds as they move further into their golden years? That's what we'll examine below.

Start earning more interest on your money with a high-yield savings account here.

How Social Security recipients can earn 4% on their money right now

In today's elevated interest rate environment, it makes sense to earn as much interest as possible on your money. Here are two effective ways to do just that:

A high-yield savings account

You can earn an interest rate of 4% or slightly higher with a high-yield savings account right now. These accounts function just like traditional savings accounts, albeit with higher interest rates. And while rates on high-yield savings accounts are variable, meaning that they will change based on market conditions, the chances of rates cooling over the next few months appear low now. 

With no interest rate cut from the Federal Reserve issued so far in 2026 – and with none likely to come in the next few months – this could be the smart time to get started. Compared to the minimal 0.38% average rate that traditional savings accounts now come with, not only are you not keeping pace with inflation by leaving your money in that account, you're technically losing money by not making the switch from a traditional savings account to a high-yield savings account instead.

Get started with a high-yield savings account online today.

A certificate of deposit (CD) account

Right now, CD accounts come with interest rates similar to the top high-yield savings accounts, but the major benefit is that they won't change over time, as a CD employs a fixed rate that will hold through the account's maturity date. While you will need to give up access to the deposited funds until that date arrives, it could be a worthy exchange for a reliable return of 4% or more on your money. 

That said, it's important to crunch the returns in advance, and you'll need to be confident in your ability to keep the money frozen for the duration of the CD term. An early withdrawal penalty on the account could wipe out some or even all of the interest earned to that point.

How to protect your Social Security and retirement funds

While earning more interest on your money is always a plus, for many Social Security recipients and retirees, protecting those funds is equally or even more important. A gold investment, for example, can help. Since gold tends to hold its value and even rise during turbulent economic periods (as was clearly demonstrated in recent years), the precious metal is often considered a smart portfolio diversification tool and hedge against inflation. While you may not be able to produce income with gold as you would with other assets, it can still perform a worthwhile function in your broader portfolio, especially in today's economy.

That said, seniors and Social Security recipients need to be careful and judicious with where they keep their money and where they invest it. A wrong decision can have painful economic ramifications, so it may be worth speaking with a financial advisor before getting started with a specific savings account or investment type now. They can help you better understand your options and help you determine your next steps with clarity and precision.

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The bottom line

Social Security recipients may be in line for a 4% COLA adjustment at the end of this year, but they can start earning an interest rate that high or even slightly better on their money with a high-yield savings or CD account now. That said, protecting retirement and Social Security funds is also critical. And that could mean adding gold to your retirement portfolio or simply speaking with a financial advisor to discuss all of these options in detail. But with inflation surging and elevated interest rates readily available for savers now, it makes sense to start this process sooner rather than later.