bank rates

Check Out These Banks Offering Bump-Up CD Promotions

piggy-bank-red-bowWhen 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:

Banks Currently Offering Bump-Up CD Promotions
Bank Term Base Rate APY
Ally Bank  2-year, 4-year 1.30%, 1.40%
Cornerstone Bank 17-month 1.50%
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

Minimum: None

Availability: Nationwide

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

Term: 17-month

Base rate: 1.50% APY

Minimum: $500

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

Term: 24-month

Base rate: 1.75% APY

Minimum: $1,000

Availability: Nationwide

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

Term: 36-month

Base rate: 2.00% APY

Minimum: $500

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-up” or “raise your rate” 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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