Some banks will pay more interest on cash you might be lying about – if you’re willing to lock up those funds for a few months. In April, several banks increased the yields they pay on certificates of deposit, with rates on CDs with maturities of one year or less rising 6 basis points to 3.71% and rates on instruments with maturities of 13 to 36 months rising 1 basis point to 2.62%, according to a Wednesday analysis from Morgan Stanley. A basis point is equal to one hundredth (0.01%) of a percent. Eight of the 35 banks covered by Morgan Stanley increased their CD yields. “During Q1 2026 results, many management teams highlighted increasing competition caused by rising credit demand and increasingly uncertain interest rate trends,” wrote analyst Manan Gosalia. Net interest income measures the difference between the income a bank earns from interest on assets such as loans and mortgages and the interest it pays on deposits. Greater demand for loans can help banks cover the cost of diminishing returns on CDs. Another factor to consider is the likelihood that the Federal Reserve will keep interest rates on hold, as it did in April. Three central bank officials recently said they don’t think it’s appropriate to signal that the next interest rate move will be lower. “The increase in CD rates in April confirms banks’ comments about increasing competition,” Gosalia wrote. “With credit growth accelerating and expectations of rate cuts increasing, we expect CD rates to remain flat or increase slightly.” Below are the banks that delivered their highest CD returns in April, according to Morgan Stanley. As attractive as interest rates may seem, returns are not enough to keep up with inflation over the long term. But they allow investors to make a little extra money using cash they may have set aside for a short-term purpose. Here are the banks that are currently paying some of the highest interest rates.
