High interest rates mean greater returns from your savings accounts. It also means paying more in interest instead of the principal balance on credit cards and loans. We cover both in our monthly updated list of the best interest rates.
Interest rates remain on the rise. In May 2022, the CBO announced that it sees inflation falling back to 2% by 2024. We'll see.
Our list includes savings and investment vehicles to help you achieve greater earnings. And on the other side, we’ve added credit and loan options with the lowest available interest rates.
March 2023 Interest Rate Update
The Federal Reserve increased the federal funds rate by 25 basis points in March.
As of March 22, 2023, the federal funds rate sits in a range of 4.75% to 5.00%. The fed funds rate determines the rate at which banks lend each other money. So, when the fed raises its fund rate, you can expect the impact to trickle down to you.
Borrowers have already seen a hike in the APR on credit cards and loans. Savers are also starting to see higher earnings from APY.
Best Interest Rates for March 2023
Best Savings Rates
Featured Offer: FVCbank 12-Month No Penalty CD
- 12-Month No-Penalty CD
- APY: 4.60%
- Min. Deposit: $1
- No early withdrawal penalty
- FDIC Insured
The national average APY from savings accounts is currently 0.35%. The following banks offer savings accounts that far exceed that average.
UFB Direct
A UFB Preferred Savings account earns interest at a competitive APY. There's no minimum balance to open an account or earn the APY. The online bank is available nationwide and account setup only take a few minutes.
- 5.02% APY
- No minimum deposit to open
- FDIC insured
Popular Direct
Popular Direct is offering 4.40% APY on its High-Rise Savings Account. Popular Direct is an online bank and the minimum deposit to open a savings account is $5,000.
- 4.40% APY
- $5,000 minimum
- FDIC insured
See our full list of Best Savings Account Rates
Primis Bank
Primis Bank is offering 4.35% APY on its savings account with just a $1 minimum to open. It's a Virginia-based bank but the account is available nationwide online.
- 4.35% APY
- $1 minimum to open
- FDIC insured
Best Money Market Account Rates
Republic Bank
Republic Bank of Chicago is offering 4.60% APY on its Digital Money Market account. It's an online account, and the minimum opening deposit is $2,500.
- 4.60% APY
- $2,500 minimum to open
- FDIC insured
UFB Direct
UFB Direct is offering a high APY on its Preferred Money Market Account. There is a $10 monthly fee but you can waive the fee by maintaining a $5,000 minimum balance.
- 5.02% APY
- No minimum to open an account
- FDIC insured
CFG High Yield Money Market Account
CFG Bank is offering 5.02% APY for money market accounts maintaining a $1,000 minimum balance. The minimum deposit to open an account is also $1,000.
- 5.02% APY
- $1,000 minimum to open
- FDIC insured
See our full list of Best Money Market Rates
Best CD Rates
A certificate of deposit (CD) can earn greater returns than a traditional savings account. The catch is that you have to be able to leave the money untouched for a certain amount of time.
Your money will grow at a fixed rate and isn't affected by the volatility of the market. Here are the best current CD rate offers:
| Bank | APY | CD Term | Deposit | Insured | Best For | |
| Alliant Credit Union | 4.75% | 6 mo | $1000 | FDIC | 6-mo rate | |
| CFG | 5.15% | 1 yr | $500 | FDIC | 1-year rate | |
| General Electric Credit Union | 4.75% | 5 yr | No minimum | FDIC | 5-year rate | |
| Capital One 360 | 5.00% | 11 mo | No minimum | FDIC | No minimum deposit |
See our full list of Best CD Rates
Best Checking Account Rates
Interest rates aren’t just for your savings account. You can also earn a competitive interest rate on a high-yield checking account.
The latest FDIC data from February 21, 2023 shows the average checking account interest rate is 0.06%. The following banks offer the highest checking rates available as of March 2023.
Primis Bank
Primis Bank is offering the highest APY we can find on a checking account. The Primis Premium Checking account is offering 4.35% APY. The minimum deposit to open an account is just $1.
Wealthfront
Wealthfront is a banking alternative. It's a cash account, but you don’t have to sacrifice security.
Wealthfront’s bank partners are able to offer up to $1 million in FDIC insurance. There are no account fees and your cash account includes budgeting features. Any leftover income can be easily rolled into an investment account. The APY for the cash account currently stands at 4.30%.
See our full list of Best High-Yield Checking Accounts
Best Mortgage Rates
The average mortgage rates rose slightly from last month. Below is a list of the national averages:
| Mortgage Type | Rate |
| 30-year fixed-rate mortgage | 6.5% |
| 15-year fixed-rate mortgage | 5.76% |
Best Loan Rates
The latest personal loan rate from the Federal Reserve shows rates at 11.23% for a personal loan with a 24-month term.
Personal loan rates depend on creditworthiness, loan term, and the federal funds rate. Even if you qualify for the best personal loan rates, you may see a rise in rates in the coming months.
Credit Unions on average offer a lower rate than banks, but they may also have more barriers to approval. Here are some of the best personal loans rates available for March 2023.
| Bank | APR | Loan amount | Loan Term |
| LightStream | 5.99% – 23.99% | $5,000 – $100,000 | Up to 7 years |
| Discover Bank | 6.99% – 24.99% | $2,500 – $35,000 | 36 – 84 months |
| PenFed Credit Union | 7.74% – 17.99% | $600 – $50,000 | Up to 60 months |
| SoFi* | 7.99% – 23.43% | $5,000 to $100,000 | 2 – 7 years |
| Upgrade** | 8.49%-35.97% | $1,000 – $50,000 | 24 – 84 months |
**Upgrade Note: Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
Best 0% Credit Card
Paying down debt and large purchases with a 0% APR card can save you money. Here are the cards with the longest interest-free timeframes.
Citi® Diamond Preferred® Card
- 0% APR for balance transfers: 0% Intro APR for 21 months on balance transfers from date of first transfer. After that the variable APR will be 17.49% - 28.24%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- 0% APR for purchases: 0% Intro APR on purchases for 12 months from date of account opening. After that the variable APR will be 17.49% - 28.24%, based on your creditworthiness.
- Annual fee: $0
- APR after introductory period: 17.49% - 28.24% variable APR
Read our Citi® Diamond Preferred® Card Review
Wells Fargo Reflect Card
- 0% APR for balance transfers: 18 months
- 0% APR for purchases: 18 months
- Annual fee: $0
- APR after introductory period: 17.49% - 29.49% variable APR
Read our Wells Fargo Reflect Review
Read more: Best Interest Free Credit Cards
Money Market Account vs. Savings Account vs. Cash Management Account
Savings, money market accounts, and cash management accounts are great for emergency funds. But they have some notable differences that may make one type more suitable for your money.
A savings account is a traditional bank product separate from your checking account. Your savings account can have limited withdrawals. It offers a low interest rate compared to other investment products. But, it has none of the risk that comes with investing, and it’s FDIC insured.
A money market account (MMA) has a hybrid checking and savings account setup. You can make more withdrawals with an MMA than you can with a savings account. But it’s not unlimited like a checking account — the usual limit is six withdrawals per month. On average MMAs earn higher interest rates than savings accounts. The FDIC reports 0.48% national average returns on MMAs, compared with 0.35% for savings accounts.
A cash management account (CMA) steps into the realm of fintech innovation. A CMA allows investments, savings, and checking under the umbrella of one account. And through third-party partnerships with banks, your money can still be FDIC insured. These accounts are often fully digital. Is CMA is ideal for the saver and investor who doesn’t need a brick-and-mortar branch.
When Do Interest Rates Go Up?
When the federal funds rate goes up, it means that banks have to pay more to lend money to each other. The increased lending cost falls on you, the consumer’s, shoulders. The prime rate, which is the best rate that the most creditworthy applicants qualify for, goes up. Interest rates for everyone else follow suit. This includes rates for credit cards, auto loans, mortgage rates, and personal loans.
The Federal Reserve doesn’t raise the fed funds to make the American's lives more expensive on top of sky-high inflation prices. Instead, it’s to correct the inflation problem. Inflation happens when demand outpaces supply. People are borrowing and buying faster than product creation.
When interest rates rise, people may stop spending and borrowing as much. Demand falls and creates an opportunity to balance the demand and supply relationship.
FAQs
Where is the best place to save my money in 2023?
You want a place to save your money away from the volatility of the stock market. The best bank products include high-yield savings accounts, CDs, and money market accounts.
Look for the highest available APR for the most return on your cash. If you can stand to leave your deposit untouched for several months to a year, a CD can offer a higher interest rate. It’s also FDIC insured, minimizing your risk.
Are online banks safe?
Not every online establishment has the credibility to house your money. Look for FDIC insurance for online banking establishments. Or, NCUA insurance for online credit union accounts. Credible fintech companies should offer FDIC insurance through a partner bank.
How often do interest rates change?
The Federal Open Market Committee (FOMC) meets eight times a year to set and adjust the federal funds rate. From there, commercial banks set the interest rate for consumers. This rate can change based on supply and demand.
Final Words
When interest rates ramp up your finances don’t have to suffer. Grow your savings in a high-interest banking product or investment vehicle. Also, take advantage of longer zero-interest APR terms on credit cards to pay down your debt.
Want to learn more? Check out how much you’re paying in credit card interest with our credit card payoff calculator. On the flip side, see how a strong APY bolsters your savings with our simple savings calculator.