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The start of a new month marks an opportune time to reevaluate your personal financial situation — and improve it where possible. With a new inflation report slated to be released on March 12 and another Federal Reserve meeting scheduled for March 19 and March 20, there is bound to be some financial news that affects your money.
Elevated inflation and the highest interest rates in decades have left borrowers feeling squeezed but savers have been able to take advantage with high returns on select account types. As is usually the case with personal financial decisions, however, timing is key. And with the prospect of rate activity elevated for March, there are some smart financial moves to consider making now.
Start by exploring your CD account options and earn more interest on your money here.
4 smart financial moves to make for March
Here are four smart financial moves to consider making in the new month.
Open a CD
CD rates are high right now with some rising to 6.5% or even 7% for select savers. Those types of returns aren’t typically available but they could result in big earnings for savers now. Plus, the rates on CDs are locked so even if the rate climate drops in the weeks and months to come, savers will still be locked in with that elevated APY.
Still, CDs aren’t for everyone, and if you need routine access to your funds you may be better served with some other, high-interest-earning alternatives.
Learn more about your CD account options here today.
Open a high-yield savings account
While not as high as the very best CD rates, returns on high-yield savings accounts are competitive right now, often falling in the 5% range for qualified savers. And you won’t need to deal with an early withdrawal penalty for taking some of your money out.
The downside? Rates are variable and subject to change. But, for many, that may be worth maintaining the access they’re accustomed to while boosting their savings with a better APY in the interim.
Get started with a high-yield savings account for March now.
Lock in a mortgage rate
Mortgage rates aren’t as advantageous as they were a few years ago but, historically, they’re still on the low side. But that doesn’t mean they’ll stay where they are long-term. If the Fed decides that the battle against inflation hasn’t been won it’s possible that rates will rise again — and mortgage interest rates will follow.
So, homebuyers looking to move this year should consider locking in today’s mortgage rate now. They could always unlock and relock a better one before closing or refinance in the future when the rate climate stabilizes. By waiting, however, they could wind up getting stuck with an even higher rate than if they had moved now.
See what mortgage rate you could qualify for here.
Pay down debt
It won’t make much sense to open a CD or high-yield savings account or apply for a mortgage if your debt is overwhelming. So first consider getting it in order by paying it down. A debt relief service could help by potentially securing lower credit card payments than you otherwise may have got on your own, putting you on a more secure financial path. You should also consider boosting your credit score, which will help you obtain better rates on lending products like mortgages and other loans.
Learn how debt relief could help you now.
The bottom line
It’s never too late to improve your financial situation but the start of a new month is a good time to begin. So look to open a CD and high-yield savings account to earn more on your money and, if you’re considering buying a home, lock in a rate to protect against future volatility. Finally, remember that the best rates and terms will always be reserved for those with the cleanest credit profiles so try to pay down your debt to boost your credit score. By taking these steps in March, you’ll better position yourself for financial success in April, and the months and years that follow.
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
