When everyone is looking for ways to make a dollar last longer, CDs have again become part of the conversation. In a study conducted at the end of 2025, 6.5% of Americans have some amount of money in a CD account. As others consider this investment vehicle they understandably have questions around minimum opening amounts, term limits, and rate averages. Let’s take a look at what CD rates are, how they are calculated, and try to answer the question “Are CD rates going up.”

A Quick CD Primer

CDs have been a part of banking for a number of years and you most assuredly have heard the name. But what do you really know about them?

How do CDs work?

A CD is short for Certificate of Deposit. It is, in effect, a savings account that has a set term to it and a fixed interest rate. Banks often have a minimum amount needed in order to set up a CD (ours is $1,000) but there is generally no limit to the amount that you can put into it.

One important detail to consider though is that the FDIC only insures $250,000 of a deposit made by an individual at a bank into a specified account.

How long is my CD “open?”

The term for your CD will be decided by what your bank offers. Some banks set short-term limits on their CDs (say three months) and others require a CD to be open for a longer period (for example five years).

What’s the number one benefit of a CD?

Most people choose to put some of their savings into a CD because of the earning potential it holds. A CD rate stays consistent over the complete term of the CD so if you have a strong rate you’ll see consistent growth even if the rates in other savings vehicles start to fall.

Are There Different Types of CDs?

There is a wide range of CD types, each with its own specific investment criteria and rate calculations. The two most common are Traditional and High-Yield.

How Often Do CD Rates Change?

Within the banking world, there is not a set schedule for the evaluation and adjustment of CD rates. In fact, CD rates are set by each bank and tend to be reviewed, on-average, every six months.

When a change does occur, it’s a ripple effect of a fluctuation in the federal funds rate. As a general rule of thumb, when federal interest rates drop, the interest rates for CDs rise. And then, of course, the inverse is true as well.

Recent Trends in CD Rates

Across the past two years, CD rates have been trending downward. In 2023 and 2024, the U.S. Federal Reserve made cuts to interest rates, and as a result of this, the average rates for 1-year term CDs reached historic highs. In January of 2024, the traditional CD rate peaked at 1.86%. Less than two years earlier, in April of 2022, that rate was 0.17%.

The rates for high-yield CDs were even higher. During that same period, the rate for a 1-year high-yield CD was 5.28%. The April 2022 rate for that same savings tool was 0.80%.

Since touching the sky, though, the rates for both CD options have slowly followed a downward path. In April 2026, the rate for a traditional CD was 1.55%, and for a high-yield CD it was 3.70%

CD Rate Projections

Experts are suggesting that the decline is slowing or perhaps even leveling off. Alastair Wood, the CEO of Raisin, was quoted in a CBS News report saying, “Today's environment remains highly attractive. You can secure a meaningful real return and lock in predictable growth before rates drift further toward their long-term averages."

So, What’s a Good CD Rate?

Accessibility is one of the hallmarks of internet banking. So is access. It’s never been easier to rate shop for CDs. As you do you’ll find average rates for traditional CD reaching up to 1.85%, and for high-yield CD offerings, the current rate can get up to 4%.

Of course, the key to capturing the right rate at the right time comes down to knowledge and timing. Having a trusted, knowledgeable banking partner who can help you understand the landscape and potential of the federal funds rates will give you the detail you need to lock in the most advantageous rate you can.

Choosing a CD is About More Than Just a Rate

When it comes to CD rates in Wyoming, we believe that we offer some of the most competitive options around. As you’re reviewing those rates and making a decision about where to open a CD, it’s important to consider how that money will be “used.” When you place your CD with a local bank, your money stays in the community. As you are earning interest, your money is being used to support local businesses, offer a hand to non-profits, or being loaned to your neighbors to help with their renovations before the new baby comes. The power of a local bank is that the savings they hold and loans they offer don’t benefit investors three states away, but they support your friends and neighbors.

I Want to Get the Best Local CD Rates

Everyone is trying to save a little today to get through whatever tomorrow brings. A CD is a great, low-risk vehicle for doing that. When you lock in with your local bank’s CD rates, you’re not only insulating your money from strong rate fluctuations, but you’re also, in a way, making an investment in your community. An investment that will pay you back over time.

Reach out to your local branch to learn more about the CD options available.