2011 Rising-rate CD survey
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2011 Rising-rate CD survey: Step-up CDs

Rising-rate CDs » Step-up CDs

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 nameMarketMaturityInitial
annual
percentage
yield (%)
Yield
to
maturity
Conditions
PNC BankChicago36-month0.250.82PNC 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 BankPhiladelphia36-month0.250.82PNC 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 BankPhiladelphia36-month0.751.05TD 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 BankPhiladelphia60-month0.801.28TD 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 BankDetroit36-month0.250.82PNC 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 BankDetroit24-month0.150.89Flagstar 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 BankBoston36-month0.751.05TD 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 BankBoston60-month0.801.28TD 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&TDC Metro48-month1.001.39BB&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 FCUCredit Union60-month2.473.13American 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 FCUCredit Union60-month2.523.21American 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 FCUCredit Union36-month1.712.22American 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 FCUCredit Union36-month1.762.27American 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 FCUCredit Union60-month1.712.77American 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 FCUCredit Union60-month1.762.83American 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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Product Rate Change Last week
1 Year CD 0.90%  0.01 0.89%
2 Year CD 1.03%  0.00 1.03%
5 Year CD 1.59% --0.00 1.59%
 
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