Certificate of deposit rates are not offering substantial returns at the moment. With the special step-up CD rates from PlainsCapital Bank, it’s easy to start saving now with the option to raise rates when interest rates rise.
The common fear that prevents many savers from investing in CDs is that interest rates start increasing while a large amount of their money is locked in at a lower rate. A typical step-up CD offers customers a one-time option to increase the rate on their accounts to match the current yields.
- 18-Month Step-Up Extendable CD paying 1.21% APY
- 30-Month 2X Step-Up CD paying 1.56% APY
- 40 Month 3X Step-Up CD paying 1.71% APY
The 18-Month Step-Up Extendable CD offers the right to exercise one step-up. When activating the step-up, you can also extend the term of the CD for another 18 months and receive another step-up for future use.
The 30-Month 2X Step-Up CD offers the right to step up two times during 30-month term. The 40-Month 3X Step-Up CD offers three step-ups during the 40-month term.
Certificate of deposit accounts at PlainsCapital Bank can be opened online but are available only to customers who reside in the state of Texas. The minimum balance required to earn the advertised APY is $1,000.
For CDs with maturity terms of over one year, the early withdrawal penalty is 90 days worth of interest. It may be discouraging to know that PlainsCapital Bank reserves the right to reject your early withdrawal request.
A Look at Other Step-Up CD Rates
Step-up CDs (also known as bump-up CDs) are rare finds but are starting to show up more frequently. Arguably the most popular step-up CD is offering by Ally Bank as the Raise Your Rate CD. Compare the step-up CDs from PlainsCapital Bank with others:
|CD Product||Bank||APY (as of 2/18/11)||Minimum to earn APY|
|17-Month Step-Up CD||Kearny Federal Savings Bank (NJ)||1.25%||$1,000|
|2-Year Raise Your Rate CD||Ally Bank||1.50%||$0|
|29 month Step-Up CD||Kearny Federal Savings Bank (NJ)||1.50%||$1,000|
|30-Month Step-Up CD||East Boston Savings Bank (MA)||1.75%||$1,000|
The trade-off of having a step-up option is a lower starting rate but it is great for those who wants their savings returns to match improvements in the economy. Another way to ensure that savings are receiving the best CD rates at any moment is to build a CD ladder.