Save more money with these 5 smart CD moves in April

Takeaways

• Dozens of nationwide CDs offer guaranteed returns in the 4% range right now—with a leading offer of 5.00% APY.
• The APY of a CD is yours until the end.
• April is a great time to lock in guaranteed returns before CD rates begin to fall.
• We’ve compiled five pro tips for you that will help you to increase your earnings and virtually eliminate all risk.

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These CD strategies can help you save a lot of money

Certificates of Deposit (CDs) have a unique feature that you cannot get with a money market or savings account: a guaranteed, unassailable return. This type of rate lock is particularly useful, as it’s expected that interest rates in the United States will be lower this year. The Federal Reserve may even lower rates this spring.

You are fortunate because dozens of CDs across the country offer guaranteed returns in the range of 4%. With the national leader, you can lock-in a rate of APY up to 5.00% in every major CD.

Although CDs are easy to open, there are a few smart strategies that can help you earn the most money while essentially eliminating all risk.

CD Pro Tip #1. Always shop around

The rates on CDs differ widely between institutions. The rates charged by large banks such as Chase and Bank of America are often close to zero. Smaller banks and credit unions, however, pay some of the highest rates.

The average national rate for a CD with a term of one year from an FDIC-insured bank is currently 1.78%. The best 1-year APY rate in the country is currently 4.60%.

We make your rate research easy by tracking the rates at about 200 nationwide credit unions and banks, and ranking the top 15 APYs of each CD term. So whether you're looking for a short 3-month CD, a long 5-year CD, or any duration in between, you can always find the top nationwide rates in our daily rankings—all of which are linked at the end of this article.

CD Pro Tip #2. Consider More Than One Disc

If you don’t want to commit all your CD savings to one fixed term, you can split them into two or more buckets and place the amounts in CDs with different terms. For example, you could put one portion of savings into a CD for 6 months, another amount in a CD for 1 year, and a third amount maybe in an CD for 18 months.

By spreading out your funds over different terms, you are able to diversify the time you will need to wait before you can regain access to them. In the example, a portion of your savings will be available every six-months. It also means that, if you have an emergency and need to cash in your CD early, it may be possible to do so with only one CD.

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Most CDs have an early withdrawal charge that you will incur if your funds are withdrawn before the maturity date. They also vary greatly between institutions. Some charge only a few month’s interest, while others charge much harsher penalties. In any case, incurring an early withdrawal penalty isn’t the end of the world—but it does cut into what you’re earning. It’s a good idea to wait until CDs reach maturity whenever possible.

CD Pro Tip #3. Put Some Reserves into a High-Yielding Savings Account

To help you avoid having to cash in a CD before it matures, it's always wise to keep some of your savings in a liquid account, like a savings or money market account. If you need to dip into savings for an unexpected expense, you can use the funds in your savings account and avoid having to cash out a CD.

You will need to choose your savings account strategically. You’ll want your “first reserve” money in a high-yielding savings account. The top accounts currently pay up 4.60%. More than a dozen others offer at least 4.4%. We monitor all the best high-yielding savings account rates, and we present a ranking every day of the 15 highest APYs.

CD Pro Tip #4. Don't Delay.

Last week, despite the current economic uncertainty, the Federal Reserve predicted that it would lower its federal funds rate by a quarter-point twice during this calendar. It’s anyone’s guess whether or not this will happen, but it is generally expected that the Fed will lower its benchmark rate this year and likely again in 2026.

When they sense the Fed is ready to cut federal funds rates, banks and credit unions will begin to lower their CD rates, and they won't necessarily wait until an official rate cut announcement. Some institutions will reduce CD rates if they are confident that the central banks will lower rates at a upcoming meeting.

April is the perfect time to lock-in one of today’s incredible rates. CME Group’s FedWatch Tool, at the time this article was written, indicated that financial markets were pricing in a probability of 64% that the Fed would make its first rate cut for 2025 by its June meeting. The higher the probability that CD rates will start to drop, the more likely it is that they will. Delaying could mean that you miss out on a great rate before you lock it in.

CD Pro Tip #5. Set a Future Note for Yourself

Anytime you open a new CD, an expert tip is to mark a pre-maturity reminder on your calendar or in a reminder app—or both so you can't miss it. The smartest timing for this reminder is 1–2 months before your CD is set to mature.

The reason it's so useful is that it triggers you to think ahead about what you want to do with the funds that are maturing. You'll need to give the bank or credit union instructions on where you want your funds to go, and if you're interested in moving them to another CD, you'll need to do your rate shopping once again. So it's important to give yourself enough time to do this so you can make a smart saver's choice before the maturity date arrives.

Warning

While the automatic roll-over option you'll likely be offered on a maturing CD seems convenient, the rates offered when rolling over are almost always sub-par. You can earn more money by shopping around to find the best rates, and then moving your funds to a top CD.

Rankings for the Best CDs, Savings Accounts and Credit Cards.

These rankings are updated every business day so that you can get the best possible deposit rates.

Best 3-Month CD rates

Best 6-Month CD rates

Best 1-Year Cd Rates

Best 18-Month CD rates

Best 2-Year Rates on CD

Best 3-Year CD rates

Best 4-year CD Rates

Best 5-Year CD rates

Best High-Yield Savings accounts

Best Money Market Accounts

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Note that the "top rates" quoted here are the highest nationally available rates that Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is different from the average national rate, which includes every bank offering a CD in that term. Many large banks pay pittances of interest. The national averages will always be low, but the top rates that you can find by shopping around could be 5, 10, or 15 times higher.

How we find the best CD rates and savings

Investopedia tracks daily the rates of more than 200 banks, credit unions, and savings accounts that are offered to customers across the nation. This data is used to determine the best-paying accounts. To be included in our lists, an institution must be federally backed (FDIC for credit unions, NCUA or FDIC for banks) and have a minimum deposit of $25,000 for the account. It cannot also specify a maximum amount of deposit that is below $5,000.

To qualify as a national bank, the bank must be located in at least forty states. While some credit unions ask you to donate to an association or charity to become a part of their organization if you don’t meet the other eligibility criteria, (e.g. if you don’t live in certain areas or work in certain types of jobs), we exclude credit Unions that require a donation of $40 or more. Read our methodology to learn more about how we select the best rates.

Article Sources Investopedia asks writers to use primary resources to support their writing. White papers, government data and original reporting are some of the sources. Where appropriate, we also reference original research by other reputable publishers. Learn more about our standards for producing accurate and unbiased content by visiting our Editorial Policy

1. FDIC. "National Rates and Rate Caps."

2. CME Group. "CME FedWatch Tool."