“Opting for a shorter-term CD, such as a 3-month one, allows for more frequent re-evaluation of rates, potentially taking advantage of rising rates sooner. However, this strategy requires actively monitoring the market and may result in lower overall returns if rates decrease,” says Cliff Ambrose, founder and financial advisor at Apex Wealth.

Lock in long-term CD rates

While you might find higher rates right now with short-term CDs, it’s possible that you’d be better off with a long-term CD.

“The most attractive CD rates in the market are for terms between 6 and 12 months, which isn’t normally the case, but the market is expecting rate cuts, so if someone is confident they don’t need access to the money immediately, they should look at the longest term that fits their personal situation,” says Derik Farrar, head of deposits at U.S. Bank.

Doing so could result in higher overall returns if rates fall, compared to rolling over short-term CDs.

Explore both short-term and long-term CD account options here today.

Shop for the best CD account rates

Regardless of which CD term you choose, it helps to shop around for the best CD rates to maximize your returns.

“Knowing what is offered by your current trusted bank gives you the foundation to start shopping for better rates. After that, it’s time to shop for your best deal much like you would looking for discounts on any other purchase — to see if a better offer is out there,” says Jennifer White, senior director, banking and payments intelligence at J.D. Power.

“Looking online can highlight offers from online-only banks. These online-only banks may be offering the highest rates if you are comfortable parking your money and don’t need a branch to visit,” she adds.

Build a CD ladder

Lastly, if you’re not sure which CD rate to choose, you can spread out your risk and gain consistent income by building a CD ladder.

“In this case, you open several smaller dollar amount CDs of different durations — say, 6-month, 12-month, 18-month, and 24-month CDs — so that every six months some portion of your savings is available should you need it. This helps balance earning the highest interest rates while offering access to your deposits should the need arise, without penalty,” says White.

The bottom line

CDs offer savers an opportunity to earn high interest rates in this environment and there are multiple ways to take advantage of these rates this spring. However, what works for one person won’t necessarily be best for you, as you wouldn’t want to be in a position such as having to terminate a CD early for a penalty, due to not having enough cash, for instance.

“If you’re looking to make the most of your money with your CD this spring, it’s most important to think about your own needs and goals in what you are comfortable locking into a CD for a duration,” says Courtney Shotto Mitchell, head of consumer deposit and payment products at TD Bank. “It really depends on your financial needs and time horizon of the investment you are making.”