2011 Rising-rate CD survey: Step-up CDs

2011 Rising-rate CD survey

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By Bankrate.com

Today's rates on certificates of deposit are among the lowest they've been since Bankrate began archiving rates in 1983. But a step-up CD adjusts its rate higher at specific, predetermined intervals.

Bankrate's study found step-up CDs lagging behind their traditional cousins in yield to maturity, or possible yield over the lifetime of the CD. Of the 15 step-up offers in the survey, only six beat traditional CDs of the same term.

Included in Bankrate's CD survey results are a listing of the banks, their locations, and their CD's maturity, initial annual percentage yield and yield to maturity. You also can find the best CD rates at Bankrate.com.

Institution name	Market	Maturity	Initial annual percentage yield (%)	Yield to maturity	Conditions
PNC Bank	Chicago	36-month	0.25	0.82	PNC Bank, Chicago, 36-month Step-Rate CD (also called 'Super Six CD'): $2,500 minimum to open. Three-year CD made up of six terms of six months each. Early-withdrawal penalties are waived for a 10-day period every six months. At the end of the 36-month term, the rate would be at 1.40%. The APY would be 0.82%. First six-month term yields 0.25% APY; second six-month term yields 0.50% APY; third six-month term yields 0.75% APY; fourth six-month term yields 0.90%; fifth six-month term yields 1.15%; last six-month term yields 1.40%.
PNC Bank	Philadelphia	36-month	0.25	0.82	PNC Bank, Philadelphia, 36-month Step-Rate CD (also called 'Super Six CD'): $2,500 minimum to open. Three-year CD made up of six terms of six months each. Early-withdrawal penalties are waived for a 10-day period every six months. At the end of the 36-month term, the rate would be at 1.40%. The APY would be 0.82%. First six-month term yields 0.25% APY; second six-month term yields 0.50% APY; third six-month term yields 0.75% APY; fourth six-month term yields 0.90%; fifth six-month term yields 1.15%; last six-month term yields 1.40%.
TD Bank	Philadelphia	36-month	0.75	1.05	TD Bank, Philadelphia, 36-month Step-Rate CD: $250 minimum to open. Option to make one penalty-free withdrawal each year within 10 days after the account anniversary date. Available as an IRA. Interest Rate: first year yields 0.75%; second year yields 1%; third year yields 1.39%.
TD Bank	Philadelphia	60-month	0.80	1.28	TD Bank, Philadelphia, 60-month First year yields 0.80%; second year yields 0.95%; third year yields 1.14%; fourth year yields 1.24%; fifth year yields 2.23%.
PNC Bank	Detroit	36-month	0.25	0.82	PNC Bank, Detroit, 36-month Step-Rate CD (also called 'Super Six CD'): $2,500 minimum to open. Three-year CD made up of six terms of six months each. Early-withdrawal penalties are waived for a 10-day period every six months. At the end of the 36-month term, the rate would be at 1.40%. The APY would be 0.82%. First six-month term yields 0.25% APY; second six-month term yields 0.50% APY; third six-month term yields 0.75% APY; fourth six-month term yields 0.90%; fifth six-month term yields 1.15%; last six-month term yields 1.40%.
Flagstar Bank	Detroit	24-month	0.15	0.89	Flagstar Bank, Detroit, 24-month Rising-Rate CD: $500 minimum. Four six-month tiered interest rates. You may withdraw funds from the CD at the end of each six-month interval, without penalty. First six-month term yields 0.15% APY; second six-month term yields 0.65% APY; third six-month term yields 1.14%; fourth six-month term yields 1.64%.
TD Bank	Boston	36-month	0.75	1.05	TD Bank, Boston, 36-month Step-Rate CD: $250 minimum. Option to make one penalty-free withdrawal each year within 10 days after the account anniversary date. Available as an IRA. Interest Rate: first year yields 0.75%; second year yields 1%; third year yields 1.39%.
TD Bank	Boston	60-month	0.80	1.28	TD Bank, Boston, 60-month First year yields 0.80%; second year yields 0.95%; third year yields 1.14%; fourth year yields 1.24%; fifth year yields 2.23%.
BB&T	DC Metro	48-month	1.00	1.39	BB&T, DC Metro, 48-month Stepped-Rate CD: $1,000 minimum to open. Rates guaranteed to rise once per year. Rates for all four years are disclosed when the account is opened. An additional deposit, up to $10,000, allowed once a year, every 12 months from the date of the initial deposit. One no-penalty withdrawal of all or part of the principal may be made after 24 months from the date of the initial deposit. Any withdrawn funds must have been on deposit for at least seven days and no other withdrawals may have been made in the preceding six days. First year yields 1%; second year yields 1.20%; third year yields 1.55%; fourth year yields 1.80%.
American Airlines FCU	Credit Union	60-month	2.47	3.13	American Airlines FCU, 60-month Share Certificate Ladder (Option 1): $1,000 minimum to open. APY for the first 30 months is 2.47%. APY for the second 30 months is 3.80%.
American Airlines FCU	Credit Union	60-month	2.52	3.21	American Airlines FCU, 60-month Share Certificate Ladder (Option 1): $10,000 minimum to open. APY for the first 30 months is 2.52%. APY for the second 30 months is 3.91%.
American Airlines FCU	Credit Union	36-month	1.71	2.22	American Airlines FCU, 36-month Share Certificate Ladder (Option 2): $1,000 minimum to open. APY for the first 12 months is 1.71%. APY for months 12 to 24 is 2.22%. APY for months 24 to 36 is 2.73%.
American Airlines FCU	Credit Union	36-month	1.76	2.27	American Airlines FCU, 36-month Share Certificate Ladder (Option 2): $10,000 minimum to open. APY for the first 12 months is 1.76%. APY for months 12 to 24 is 2.27%. APY for months 24 to 36 is 2.78%.
American Airlines FCU	Credit Union	60-month	1.71	2.77	American Airlines FCU, 60-month Share Certificate Ladder (Option 3): $1,000 minimum to open. APY for the first 12 months is 1.71%. APY for months 12 to 24 is 2.22%. APY for months 24 to 36 is 2.73%. APY for months 36 to 48 is 3.39%. APY for months 48 to 60 is 3.80%.
American Airlines FCU	Credit Union	60-month	1.76	2.83	American Airlines FCU, 60-month Share Certificate Ladder (Option 3): $10,000 minimum to open. APY for the first 12 months is 1.76%. APY for months 12 to 24 is 2.27%. APY for months 24 to 36 is 2.78%. APY for months 36 to 48 is 3.44%. APY for months 48 to 60 is 3.91%.

Bankrate.com surveyed the five largest banks and the five largest thrifts based on deposits in 10 large metropolitan markets across the country as well as the nation's 50 largest credit unions. The surveys were conducted from March 8 to March 18, 2011.

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