High-yield savings accounts and certificates of deposit (CDs) are making headlines in March 2026, with interest rates reaching levels not seen in years. For savers and investors seeking secure ways to grow their money, the current environment offers both opportunity and a few important choices. According to Fortune, the best high-yield savings accounts (HYSAs) are now offering up to 5.00% annual percentage yield (APY), dramatically outpacing the FDIC’s national average of 0.39%. Meanwhile, NerdWallet reports that the most competitive CD rates are as high as 4.25% APY. For anyone looking to make their cash work harder, the timing could hardly be better.
High-yield savings accounts have become a go-to tool for building emergency funds, saving for major purchases, or simply earning more on idle cash. The key difference between these accounts and traditional savings accounts lies in the rate of return. As Fortune explains, “opting for a high-yield account over a traditional savings account is one of the best moves you can make.” The top offerings as of March 24, 2026, include Varo Money at 5.00% APY, Axos Bank at 4.21% APY, and Newtek Bank at 4.20% APY. Wealthfront is also in the mix, with a competitive 4.20% APY.
So, what’s behind these eye-catching rates? Online banks, which lack the overhead of brick-and-mortar branches, can pass those savings along to customers in the form of higher yields. According to Fortune, “traditional banks with branch locations tend to offer lower rates because they’re paying for physical infrastructure. Online banks offering high-yield accounts have stripped things down—no branches, fewer services—which means they can pass those savings on to you in the form of higher earning rates.”
The difference isn’t just academic. Consider a hypothetical scenario: if you deposit $5,000 in a savings account with a 5.00% APY and leave it untouched for a year, you’ll earn significantly more than if that money sat in an account with a 0.40% APY. That’s the kind of real-world impact that can add up to hundreds of extra dollars annually, depending on the size of your savings.
But how do you choose the right high-yield savings account? Fortune and its partner Curinos recommend focusing on several key criteria: seek out strong interest rates, look for accounts with low or no minimum deposit requirements, steer clear of monthly fees, ensure you have easy access to your funds, and always confirm that your account is FDIC- or NCUA-insured. That last point is crucial—federal insurance protects your deposits up to $250,000 per institution, providing peace of mind that your money is safe.
One thing to keep in mind: the interest you earn on any savings account is taxable. While this might take a small bite out of your returns, the overall benefit of a high-yield account usually far outweighs the tax hit.
Of course, the interest rate party may not last forever. As Fortune notes, “when the Federal Reserve adjusts its benchmark rate, banks typically follow suit.” The Fed made several rate cuts in late 2025—good news for borrowers, but less so for savers. If further cuts are on the horizon in 2026, some banks may lower their savings account rates accordingly. Still, even with recent Fed moves, plenty of high-yield accounts are maintaining APYs above 4.00%—making them one of the most attractive, low-risk options for savers who want both returns and liquidity.
For those willing to lock away their money for a set period, certificates of deposit offer another compelling path. According to NerdWallet, the best CD rates as of March 25, 2026, reach up to 4.25% APY. Top offers include OMB Bank’s 5-month CD at 4.25% APY, Newtek Bank’s 9-month CD at 4.20% APY, Bread Savings®’ 9-month CD at 4.15% APY, ETRADE’s 1-year CD at 4.10% APY, and Synchrony Bank’s 14-month CD at 4.10% APY.
CDs come with a trade-off: in exchange for keeping your money locked up for a fixed term, you get the benefit of a guaranteed, fixed rate—often higher than those found in savings accounts. As NerdWallet explains, “certificates of deposit (CDs) let you lock in fixed rates that can be higher than those offered by regular savings accounts. CDs offer guaranteed returns over a period of your choosing from a few months to several years.”
There’s a wide range of choices when it comes to CDs. Marcus by Goldman Sachs, for example, offers APYs from 3.85% to 4.10% depending on the term, with a low $500 minimum deposit and terms ranging from six months to six years. ETRADE features competitive rates with no minimum deposit, though its early withdrawal penalties can be steep—up to 15 months’ worth of interest. LendingClub, Bread Savings®, and Synchrony Bank all offer attractive rates and varying minimum deposits, so shoppers should compare features carefully before committing their funds.
When choosing a CD, it’s important to consider your own savings goals and liquidity needs. CDs are best suited for money you don’t need immediate access to, such as funds earmarked for a future home purchase or a big event. As NerdWallet puts it, “certificates of deposit require more of a commitment than a regular savings account since you’re locking away some savings for a future date. This feature can be helpful for some goals but not for others, such as emergency savings, since you’ll want that money to be easy to access when you need it.”
Early withdrawal penalties are a major consideration. While some banks offer no-penalty or bump-up CDs (which allow for rate increases during the term), most traditional CDs will charge a penalty if you redeem your funds before maturity. Penalties can range from a few months to over a year’s worth of interest, so it’s wise to read the fine print and make sure you won’t need the money before the term is up.
CDs are federally insured up to $250,000 per account type, just like savings accounts, so your principal is protected. The interest you earn, however, is taxable. Your bank or credit union will typically provide a 1099-INT form each year reporting the interest you’ve earned, which must be included as income on your tax return.
It’s also worth noting that while longer-term CDs sometimes offer higher rates, this isn’t always the case. As NerdWallet observes, “the highest rates right now tend to be on shorter terms. Keep in mind, though, that a longer-term CD with a lower rate can earn more than a shorter-term CD simply because it’s open for a longer stretch.”
For savers seeking even more flexibility, strategies like CD laddering—where you open multiple CDs with staggered maturities—can help balance access to cash with the benefit of higher yields.
In today’s market, both high-yield savings accounts and CDs offer secure, federally insured ways to earn more on your money. Whether you choose the liquidity of a savings account or the fixed returns of a CD, the current rates make it a smart time to review your options and put your cash to work.