economy
These banks just raised their CD rates. Where to find the highest yields
Morgan Stanley expects rates on certificates of deposit to be flat to slightly higher in the near term.
TL;DR
- Several banks have raised their Certificate of Deposit (CD) yields in April.
- Rates on CDs maturing in a year or less rose by 6 basis points to 3.71%.
- Rates on 13- to 36-month CDs gained 1 basis point to 2.62%.
- Eight out of 35 banks covered by Morgan Stanley increased their CD yields.
- Banks are facing increased competition due to improving loan demand and an uncertain rate path.
- Higher CD yields help banks cover the cost of interest paid on deposits.
- The Federal Reserve's decision to hold interest rates steady in April is also a factor.
- CD rates are expected to remain flat to slightly higher in the near term.
- While attractive, current CD yields are not expected to keep up with long-term inflation.
- These higher rates offer a way to earn extra money on cash set aside for near-term purposes.