3 ways to earn 4% (or more) on your money this March
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Hopes in the final quarter of 2024 that inflation was on a permanent decline and that interest rates would follow that trend have been dashed in the opening months of 2025. Inflation has now risen in four consecutive months and that could easily grow to five months should the next report released on March 12 show an increase in the rate in February. Interest rates, meanwhile, which were cut in September, November and December 2024, are now paused, pending developments in the fight against inflation and getting it toward the Federal Reserve’s target 2% goal (it’s now at 3%).
Against this backdrop, many Americans may find themselves searching for ways to grow their savings to offset higher costs felt elsewhere. Fortunately, there are still multiple ways to do so, even with the Fed’s latest interest rate cuts to account for. Below, we’ll break down three ways in which savers can start earning 4% (or more) on their money, beginning this March.
See how much more you could earn with a top CD here.
3 ways to earn 4% (or more) on your money this March
For every $100 deposited into one of the following accounts, you’ll earn $4 or more back in interest. Here are three to consider opening this month:
Certificate of deposit (CD) accounts
CD account interest rates are still relatively high, even if they’re not as beneficial as the 6% or 7% that was available in recent years. With a 6-month CD, savers can lock in a 4.45% rate right now, while they can get a 4.40% rate on a 1-year account. Long-term CDs, meantime, have slightly lower rates but come with additional interest-earning potential, making them one of the optimal ways to secure a big return on your money over time. And because rates on CDs are fixed, these returns will be simple to calculate and safe to rely upon. Still, rates on CDs change fairly often, so if you know you want to open this type of account and can afford to keep the money in the account for the full term to avoid an early withdrawal penalty, it makes sense to get started sooner than later.
Get started with a high-rate CD online today.
High-yield savings accounts
If you’re looking for one of the higher rates available now, a high-yield savings account can be worth exploring. With rates in the 4.50% to 4.75% range readily available, this type of account can provide a great alternative for savers looking to earn an elevated return without having to give up access to their money as they would with a CD. These accounts operate similarly to traditional savings accounts, albeit with a higher rate. Still, the high-yield savings accounts with the highest rates tend to be offered by online banks, versus your local branch. And rates here, unlike CDs, are variable and subject to market conditions, making any return difficult to predict with precision. But with rates high and flexibility that CDs simply do not come with, these could be worth exploring this March.
Learn more about your high-yield savings account options here.
Money market accounts
Savers can get a rate of 4.50% or close to it with select money market accounts right now. These accounts, which can allow savers to both save money and write checks, could be a smart alternative for those looking to grow their money while still maintaining the liquidity and flexibility they’ve been accustomed to with traditional savings accounts. And considering that traditional accounts have rates averaging under 1% now, it makes sense to move any funds there to one of these accounts instead. Just understand that the same concerns over a variable rate with a high-yield savings account apply here, too, as the rate structure is the same.
The bottom line
While the interest rate climate of March 2025 isn’t the same as it was in March 2024 or even in March 2023, it can still be advantageous for savers looking to earn substantial interest on their money. By opening one of the above accounts or by spreading their money among all three, savers can earn a rate of 4% or higher, starting this month. That still outpaces inflation and, with the right approach, can help offset some of the economic pain currently being felt elsewhere.
