Discover what a step-up CD is, its unique features, pros and cons, and how to find the best rates. We'll explain how they compare to traditional CDs.
With a step-up certificate of deposit (CD), the interest rate increases at preset times throughout the CD term.
Step Up to IELTS Audio CDs (CD-Audio)
With fixed-rate CDs, your money earns the same interest rate throughout the CD term. ; Specialty CDs are a broader category and may offer more favorable terms or looser restrictions than fixed-rate CDs. ; All CDs are insured by the Federal Deposit Insurance Corp. (FDIC), up to the maximum allowable amount of $250,000, across all eligible deposits with an institution.
CDs work a little differently than a traditional savings account, and high-yield CDs differ slightly from regular CDs because they give your balance a little extra help in the form of compound interest. If the goal is to grow your savings, a high-yield CD with a competitive ...
Vault’s Viewpoint on Types of CDs ; Certificates of deposit typically offer higher interest rates than traditional savings accounts since you must lock your money away for a fixed period. ; There are several types of CDs, including traditional, no-penalty, bump-up and high-yield CDs. ; If CDs aren’t for you, consider alternatives such as high-yield savings accounts, money market accounts or other long-term investment strategies.
Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews. If you're interested in an interest-earning bank account, there are numerous types of CDs you can explore. For example, bump-up CDs offer more flexibility than traditional CDs if rates are going up. (Rates have been increasing this year, and currently, so ...
Vault’s Viewpoint on Standard vs. Jumbo CDs ; Standard CDs offer more flexibility, term options and special features compared to jumbo CD accounts. ; Jumbo CDs often pay slightly higher interest rates than standard CDs but have fewer customization options to choose from. ; When choosing between a standard and jumbo CD, consider your investment goals, the term you need and whether you’d like to access special features.
We break down the various types of CDs, including traditional, bump-up, step-up, and no-penalty CDs. Discover which CD type can benefit your savings.
Different types of CDs may fit investors' needs, including step-up CDs, bump-up CDs, and jumbo CDs. Investopedia / Julie Bang Pros and Cons of CD Investments Financial institutions like...