bank rates

Want A Higher CD Rate? Just Ask

Some banks are willing to increase rates to win your money.In May, I wrote about the questions I ask a bank when a CD matures.

The first was: “If I renew, will you negotiate a higher rate than posted?”

Since then, I’ve gained additional experience.

And I’ve been impressed with the number of online banks that have answered in the affirmative.

One was Nationwide Bank, where a jumbo CD of mine (that’s a minimum deposit of at least $100,000) matured in June.

In the past, when I’d sought a higher-than-posted rate on a renewal, Nationwide had turned me down flat.

This time, I told the customer service representative (truthfully) that I intended to move the funds into a 4-year, 1.65% APY CD available at Alliant Credit Union — unless Nationwide could match that rate.

While the published Nationwide 48-month rate was 1.60% APY, the bank agreed to 1.65% for my 4-year renewal.

I was also surprised when Bank of Internet — which had previously declined my entreaties to negotiate premium renewal rates on maturing CDs — offered me a 0.20% rate bump-up to extend a 2-year CD for another term.

BOI’s advertised 2-year rate was 1.01% APY, so it was offering me 1.21%.

I pressed my luck, mentioning I currently own two 2-year Achiever CDs at CIT Bank, carrying a 1.25% APY, which permit me to both bump up the rate and add funds to the balances once during their terms.

The CSR, after conferring with a supervisor, agreed to match the CIT rate — without the step-up or add-on feature, however.

He said BOI offers CD customers renewal bonuses occasionally, but not always.

I’m currently discussing with another bank (which will remain nameless, for now) renewal of a 2-year CD maturing later this month.

Although willing (as it has been before) to provide me a modest premium over its posted rate to stay put, this bank has declined to match the CIT/BOI rate.

As the maturity date nears, though, I’ll probably go back to it with a revised proposal — for a 1-year renewal on a portion of the CD.

Maybe I’ll get what I ask for, maybe I won’t.

I don’t claim great victories here.

After all, a 0.05% bonus and 1.65% 4-year rate are, from a historical perspective, downright pathetic.

(Five basis points on a jumbo CD will, however, offer some help in meeting my beagles’ ever-growing dog food tab.)

The point is: Sometimes you can get something extra that’s not advertised — and often not volunteered.

Just ask.

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  1. Geoff said:
    on August 7th at 12:38 pm

    I’ve had a similar experience with Bank of Internet. They offered a better rate as soon as I said that I would withdraw the funds.