When markets expect interest rates to move up, bump-up CD promotions start to become more popular.
And since the Fed recently raised its benchmark interest rate, we’re seeing a few more these days.
Indeed, we have some banks on our radar.
Remember, you can always find the best deals in your area by checking our chart of the best CD rates.
Here are four banks currently offering bump-up CD promotions:
|Bank||Term||Base Rate APY|
|Ally Bank||2-year, 4-year||1.30%, 1.40%|
|New Buffalo Savings Bank||2-year||1.75%|
|American United FCU||3-year||2.00%|
1. Ally Bank
Term: 2-year or 4-year
Base rate: 1.30% APY, 1.40% APY
The bump-up CD from Ally offers the ability to increase your rate once with its 2-year bump-up CD and twice with its 4-year rate.
2. Cornerstone Bank
Base rate: 1.50% APY
Availability: 16 counties in Eastern Nebraska
This bump-up CD from Cornerstone gives you the opportunity to increase your rate once during the term if the posted interest rate rises.
3. New Buffalo Savings Bank
Base rate: 1.75% APY
New Buffalo Savings Bank’s bump-up CD option allows you to increase your rate once during the lifetime of the CD.
4. American United FCU
Base rate: 2.00% APY
Availability: Utah residents of Salt Lake and Tooele counties in addition to employees of certain companies and organizations.
American United FCU offers a one-time bump-up during the term of the CD. The bump-up can be exchanged for a set 0.10% increase.
What is a bump-up CD?
Also called “step-upâ€ or “raise your rateâ€ CDs, these give you the option to increase the rate if the institution posted rate increases during the term.
Ask before you buy
It’s important to know exactly what you’re getting before you pick up of these deals. Here are some questions you should ask:
- Question 1. When may I use my bump-up option?
- Question 2. How often can I increase my rate?
- Question 3. What posted rate will be used as the benchmark for raising my rate?
- Question 4. What happens if the institution stops offering the benchmark CD?
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