When Is CD Interest Rate Locked?

favden | Apr 1, 2023 | 8 posts since 2023

Hi. Is a CD rate locked upon application or approval? For instance, if I applied for a CD on Monday, the rate changes on Tuesday, and my application is approved later in the week. Do banks honor the rate in effect during application or would I get the new rate since my application wasn't approved before the rate changed? Does anyone know?

Post an answer

Answers

daylilly | Apr 1, 2023 | 19 posts since 2022

I think it depends on the financial institution. In my experience, they're all different.
Some will generously hold the rate until the account is funded even if you've been approved,
and others won't. I don't know about a situation where your application hasn't yet been approved.

favden | Apr 1, 2023 | 8 posts since 2023

OK, thank you. I'll wait a few days and see what they do.

JeffinEasternFL | Apr 1, 2023 | 744 posts since 2020

Depends on the FI - though if you started some sort of process to open a CD they usually honor the old rate but, caveat emptor!

favden | Apr 4, 2023 | 8 posts since 2023

You were both right. I applied a couple hours before the rate was reduced. I called today and they honored the rate and opened the account while we were on the phone. Thanks again for both of your responses; it put my mind at ease over the weekend.

JeffinEasternFL | Apr 4, 2023 | 744 posts since 2020

Hope it was a good one!

favden | Apr 4, 2023 | 8 posts since 2023

Yeah, it was the All-In 5% that ended on Friday. I made it literally by hours.

JeffinEasternFL | Apr 5, 2023 | 744 posts since 2020

Woo hoo, 5.05% was a good grab at 60 mos!

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.