A few banks are paying more interest on cash you might have lying about — if you’re willing to lock up those funds for a few months. In April, several banks boosted the yields they pay on certificates of deposit, with rates on CDs maturing in a year or less rising 6 basis points to 3.71% and rates on 13- to 36-month instruments gaining 1 basis point to 2.62%, according to a Wednesday analysis from Morgan Stanley. A basis point is equal to one one-hundredth (0.01%) of a percent. Eight of the 35 banks under Morgan Stanley’s coverage raised their CD yields. “During 1Q26 earnings, many management teams highlighted rising competition, driven by improving loan demand and an increasingly uncertain rate path,” wrote analyst Manan Gosalia. Net interest income measures the difference between the revenue a bank generates from interest on assets such as loans and mortgages, and the interest it pays on deposits. Stronger demand for loans can help banks cover the cost of sweetening yields on CDs. Another factor to consider is the likelihood the Federal Reserve will stand pat on interest rates, as it did again in April. Three central bank officials have recently said they don’t think it would be appropriate to signal that the next move for interest rates is lower. “April’s increase in CD rates corroborates bank commentary around intensifying competition,” Gosalia wrote. “With loan growth accelerating and expectations for rate cuts pushed out, we expect CD rates to remain flat to slightly higher.” See below for the banks that raised their highest CD yields in April, according to Morgan Stanley. As attractive as the rates may appear, yields aren’t enough to keep up with inflation over the long term. But they do allow investors to make a little extra money on cash they may have set aside for a near-term purpose. Here are the banks currently paying some of the highest rates.
