With each new year, changes in laws or economic conditions can alter how much you save, earn and owe.
Prices rise. Saving yields fluctuate. Tax breaks come and go. Some of these financial changes you may feel acutely, while you may never notice the impact others might be having on the balance in your bank account.
Several planned changes and potential developments coming in 2026 could boost or trim your personal bottom line. Here are a few to keep an eye on.
Tax Changes: New Benefits for Seniors, Car Buyers and More
Tucked inside the One Big Beautiful Bill Act were several temporary tax breaks that Americans can take advantage of to shave their tax bill or fatten up their refund check.
“The OBBBA is essentially an extension of the 2017 tax law, but it also introduces a handful of new perks for taxpayers,” says Eric Bronnenkant, head of tax for Edelman Financial Engines. “The updated law adds several new deductions that individuals can use whether they itemize or take the standard deduction.”
Bronnenkant highlights several notable new deductions, all of which go into effect starting with the 2025 tax year and last through at least 2028.
— Deduction for seniors. Taxpayers 65 and older can claim an additional $6,000 deduction, which can be stacked on top of the extra standard deduction they already receive. This write-off applies to each filer, so a married couple could deduct $12,000 total this year. The tax break phases out for individuals with income that exceeds $75,000 and married couples with income over $150,000.
— No tax on overtime pay. Putting in extra hours gets a bit more lucrative for some workers. This year, taxpayers can deduct up to $12,500 ($25,000 for joint filers) of overtime pay. The tax break only applies to the extra pay that an employee receives above their regular hourly wage. For example, if your earn $20 per hour but get paid $30 per hour — time and a half — while working overtime, the extra $10 of pay can be deducted. The break phases out for taxpayers with income over $150,000 and joint filers with combined income over $300,000.
— Deduction for tipped workers. Workers can also deduct up to $25,000 in tips, with the break phasing out for taxpayers with income over $150,000 or joint filers with income over $300,000.
— Auto loan interest deduction. To boost the auto industry and make cars slightly more affordable, the Trump administration is allowing car buyers to deduct up to $10,000 in interest paid annually on eligible auto loans. But you might want to bring your accountant to the dealership because there are numerous qualifications you’ll need to meet. For example, the vehicle must have been assembled in the U.S., and it can’t be for commercial use. The write-off also doesn’t apply to used-car loans. The deduction phases out for taxpayers with income over $100,000.
What should you do with extra refunds you might receive from any of these breaks?
Tax refunds offer an ideal opportunity to bolster your personal finances, either by paying down debt or putting the windfall into an interest-earning account, says Amy Anderson-Vali, U.S. Bank’s market leader for branch banking for Iowa, Kansas, Nebraska and South Dakota.
“Consider putting funds into a traditional savings account for flexibility or a CD for guaranteed returns,” says Anderson-Vali. “With Fed interest rates trending downward, a CD can help lock in attractive APY rates for a longer period of time.”
[Read: Best CD Rates.]
Interest Rates May Move Lower
Let’s talk about those downward-trending interest rates.
Interest rates can have a direct or indirect effect on almost every aspect of your financial life. If you plan to take out a loan or open a certificate of deposit, the rate you get can make a significant difference in the amount you pay or earn, and it adds up over time. Rates can also impact the housing market, hiring trends and more.
After closing out 2025 with three quarter-point cuts to its benchmark interest rate, the Federal Reserve is generally expected to trim its rate one or two additional times this year.
“As you’ve seen in these last few months and as we’ll likely see in the near future, rates on some lending or savings products will continue to fall across different types of financial institutions — whether that’s a bank or credit union,” says Anderson-Vali.
That high-yield savings account you opened in early 2024 when rates were sky-high might be paying a bit less in 2026, although some of the best high-yield savings accounts still offer rates near 4% annual percentage yield. Experts say it’s a good time to check your savings rate and maybe consider moving some funds into a longer-term CD or an investment product with the potential for higher returns.
While interest rates on loans “are expected to move modestly lower, they’re unlikely to fall enough to meaningfully change how consumers approach borrowing,” says Adam Boyd, head of consumer lending at Citizens.
Still, he says falling rates may offer some relief to borrowers.
“Lower rates should still provide meaningful benefits,” he says. “They can support responsible discretionary borrowing and create opportunities for consumers to refinance higher-rate debt, freeing up cash flow and easing monthly financial pressure.”
[Read: Best Personal Loans.]
Minimum Wage Increases: 22 States Boost Pay Floor
Although the federal minimum wage remains at $7.25 an hour, many working Americans will benefit from increases that go into effect at the state and local level.
Twenty-two states and 66 cities and counties will raise their minimum wage by the end of 2026, with most having instituted the new pay floors on Jan. 1, according to a report from the National Employment Law Project, a nonprofit advocacy organization.
That means more than 8.3 million people have already received a raise, according to the Economic Policy Institute. The institute also noted that there are now more people in states with a pay floor of at least $15 than there are in states that pay the $7.25 federal requirement.
[Read: Best Checking Accounts.]
Overdraft Fees Can Stay High, but Some Californians Get Relief
One change that would have had a major impact on many bank account balances didn’t happen on the federal level. However, California went ahead with a minor version of it.
A Consumer Financial Protection Bureau rule that would have placed a $5 cap on overdraft fees charged by large banks starting in late 2025 was overturned by Congress before it went into effect. This limit on overdraft fees — charges that banks levy when they cover a transaction you make that puts your account balance in the negative — would have been significant for several reasons. First, these fees can add up quickly and are often as high as $35 per transaction. Second, many Americans are getting hit with them.
A recent U.S. News payments survey found that 60% of Americans overdrew their debit card or checking account at least once in the past year. Banks, it appears, are cashing in. A Reuters analysis found that bank income from overdraft fees jumped 2% through the first nine months of 2025.
But California passed a $14 limit at the state level that went into effect this year. While this protection marks a notable step, it only applies to state-chartered credit unions and not major banks operating within the state.
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4 Factors That Could Impact Your Bank Account in 2026 originally appeared on usnews.com