CD rates could experience shifts this month, but experts suggest savers shouldn't necessarily anticipate increases. Interest rates have fluctuated considerably, falling after Federal Reserve cuts last year. However, with current market uncertainty and a pause in further Fed cuts, this decline has stalled and even reversed in some cases.

CD Rate Outlook for April

Experts generally predict that CD rates will hold steady in April, with the possibility of minor adjustments. Alastair Wood, CEO of Raisin, explains, “CD rates are expected to remain stable in the immediate short term, following the Federal Reserve’s decision on March 18 to hold the federal funds rate steady.”

Wood adds that while the Fed anticipates one more rate cut in 2026, their current approach is cautious, especially with inflation remaining slightly above the target. He believes this stability presents a good opportunity for savers to secure still-attractive rates without needing to time the market.

The Role of the Federal Reserve and Inflation

Changes in CD rates are closely tied to decisions made by the Federal Reserve, as well as economic indicators like unemployment and inflation. Todd Gunderson, president and CEO of Credit Union 1, states, “The Federal Open Market Committee looks at many economic indicators…but the two most important are the unemployment rate and the inflation rate.”

Currently, inflation is slightly above the Fed’s 2% target. However, geopolitical events, such as the conflict in Iran, could influence this. Wood notes that for CD rates to rise, “the market would need to see a reversal in recent cooling trends—specifically ‘sticky’ inflation in the housing and services sectors.”

Importance of CD Term Length

The term length of a CD significantly impacts its rate. While longer-term CDs have seen slight increases, shorter-term CDs currently offer higher rates at many institutions. Bryan Johnson, CFO of Seattle Bank and CDValet.com, says, “Short‑term CDs are where the value is at right now.”

According to CD Valet data, 6-month CDs currently have the highest APYs, averaging around 3.43%. One-year CDs average 3.26%, while 2- and 3-year CDs average 3.04% and 2.94%, respectively. However, Gunderson suggests the Treasury yield curve is flattening, potentially leading to higher rates for longer-term CDs in the near future.

CDs are currently in high demand, offering a safe and predictable return during times of global uncertainty, according to Woods. He emphasizes that locking in a rate now provides “insurance against future rate declines.” Savers should consider no-penalty CDs or high-yield savings accounts if they anticipate needing access to their funds before maturity. Shopping around is crucial, as rates vary between institutions, with digital and small community banks often offering competitive rates.