Bump Up CDs

Bump-up CDs are ideal if rates are increasing. These CDs allow you to “bump up” your rate sometime throughout the term of the CD. You can usually only do this once, and the rate only applies to the remainder of the term.

The drawback to this CD is that the starting rate is typically a bit lower than the traditional CD. On top of this, the bump-up CD only works if rates are increasing; otherwise there is no benefit.