Rising-Rate CDs a Growing Choice
Searching for a parking space at a crowded mall lot may throw a shopper looking for that last minute gift completely off.
For members and bank customers looking for safety and quick access to their money, the parking spaces these days might be far away from longer term certificates of deposit. A new Bankrate.com survey of the nation’s 50 largest credit unions and banks revealed that consumers are still skittish about CDs that lock up funds for years.
McBride said the rising rate CDs are not without strings. Bump-up CDs, for instance, tend to have lower initial interest rates. Account holders need to be sure they’re not trading away too much on the front end, he added. The timing of increasing the rate is also important. Liquid CDs often have conditions before the funds can moved elsewhere.
American Airlines FCU’s 60-month liquid CD doesn’t charge an early withdrawal penalty if the funds are used as a down payment on a home financed by the credit union. All of Suncoast Schools FCU’s CDs are penalty-free.