FIXED CD RATE

dELROY | May 20, 2019 | 1 posts since 2019

So if I do a 6 moths CD at whatever rate it is when I opened it, is that rate locked in during that 6 months or does it change according to the market?

Post an answer

Answers

jeffb1517 | May 21, 2019 | 10 posts since 2019

There are things called adjustable rate CDs which do allow rates to rise. But mostly those turn out to be a bad deal. Direct CDs with reasonable penalties are better than bonds in that you can exit with a penalty. But mostly you should assume you are going to end up locked in unless rates rise fast, especially at 6 months.

Hooked | May 21, 2019 | 236 posts since 2019

Usually it is locked in but you should find out from the FI if unsure. For instance, North American Savings Bank’s website says this about its CDs - ‘Rates may change after the account is opened’. To me, that means the bank can lower the rates, rather than the opposite!

me1004 | May 21, 2019 | 1,379 posts since 2010

Most all CD are fixed rate CDs. But some places also offer variable rate CDs, normally linked to a certain index and so can go up or down, often having a floor below which it will not go (for instance, Veridian CU if offering some variable rate CDs, the 36-month one currently is at 3.15% APY and has a floor of 2.78%.). And some offer bump up CDs, where you can have the option to bump up to a higher rate that might become available for your term CD.

But again, most CDs are fixed rate, it does not change.

You have to read the info about the CD to be sure what you are getting.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.