It can be worth depositing money into a CD account this March, as long as savers take an informed approach.
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In recent years, the question surrounding the merit of opening a certificate of deposit (CD) account wasn't much of a question at all. With interest rates as high as 6% or even 7% for some savers, the value of such a unique savings vehicle was clear. And with a fixed interest rate, these accounts offered something that most other accounts did not – guaranteed interest earnings in the face of a volatile and unpredictable interest rate environment.
However, much has changed in recent years. Those 6% interest rates are long gone, and interest rate reductions have become commonplace. That's left savers wondering about the benefits of a CD account again, especially considering that they will need to agree to lock their money away for an extended period in order to obtain any interest. To better determine the value of a CD account now, it helps to consider some timely questions heading into March. Below, we'll analyze three that can better help savers decide on their next move.
See how much interest you could be earning with a high-rate savings account here.
3 CD account questions savers should ask this March
A CD account can still be a worthwhile savings tool, but it helps to know the answer to these questions before depositing one now:
Will the March Fed meeting impact my rate offers?
There was no Federal Reserve meeting in February to impact interest rates one way or another. But the central bank will meet again on March 18, and the future of interest rates will be a major focus then. And while a Fed rate cut at the meeting has the potential to lower CD rate offers, if indirectly, right now, the chances of a reduction look low.
That may not be helpful for borrowers, but it can be a positive for prospective CD account holders who have yet to lock in a high rate. This gives them a little extra time to shop for rates and lenders online without having to be overly concerned about a pending rate reduction. And with multiple lenders still offering rates in the 4% range now, it can make sense to get started sooner rather than later.
Shop for high-rate CD accounts online now.
Do I need the flexibility alternative savings accounts provide?
While CD rates remain competitive now, the reality is that the interest earned could be easily negated with an early withdrawal penalty if you take your money out of the account before it has hit its maturity date. So you must be honest in your approach, as you may require the flexibility that alternative savings accounts provide now, instead.
Fortunately, both high-yield savings and money market accounts won't lock your money away – but both will still offer rates competitive with the top CDs. That said, high-yield savings and money market accounts both employ variable interest rates that can and will change over time, which could prove to be problematic if rates continue to decline as the year progresses.
How long can I afford to lock away my funds?
Thanks to the power of compounding interest, savers can realize improved interest earnings with a CD the longer they keep the funds in the account. And with rates on 18-month and 2-year CDs around 4% or a bit higher right now, they could stand to earn significant sums of interest, depending on their initial deposit. But how long can you truly afford to part with your money in today's evolving economic climate?
The answer to this question is different for each saver, but that doesn't mean it's not an important one worth asking, especially heading into the spring as the rate climate is largely expected to change further. In other words, don't be overly focused on your interest-earning potential if you can't actually fulfill it. Instead, consider speaking with a banking representative who can best help determine which rate and term make the most sense for you personally.
The bottom line
A CD account heading into March 2026 remains a powerful savings tool, albeit less powerful than it was in 2025 or 2024. By thoroughly analyzing the answers to the above questions, savers can more effectively decide if this account type is right for them, or if a high-yield savings account or a money market account is a better fit. Still, with rates on all three around 4% or higher now, there are still plentiful opportunities to choose from. Don't discount the benefits, too, of splitting your funds among all three accounts, which will allow you to earn competitive interest while still maintaining a baseline of accessibility in case you need it in April, May or the summer months that follow.
Edited by Angelica Leicht
