2016 rising-rate CD survey: Step-up CDs

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Today’s rates on certificates of deposit are among the lowest they’ve been since Bankrate began archiving rates in 1984. However, a step-up CD adjusts its rate higher at specific, predetermined intervals.

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Step-up CDs were offered with maturities ranging from 2 years to 5 years. However, for every step-up offer surveyed, the blended annual percentage yield — accounting for the amount and timing of each scheduled increase during the term — fell well short of the top-yielding, nationally available, traditional CD.

Step-up CDs
Institution name Market Maturity APY Conditions
Institution name: BB&T  Market: DC Metro Maturity: 48-month APY: 0.6% Conditions: Stepped Rate CD – $1,000 to open; an additional deposit, up to $10,000, is allowed once a year, every 12 months from the date of the initial deposit; 1 penalty-free withdrawal of all or part of the principal funds may be made after 24 months from the date; rates: 1st year: 0.4%, 2nd year: 0.5%, 3rd year: 0.65%, 4th year: 0.85%.
Institution name: Community Savings Bank Market: Chicago Maturity: 5-year APY: 1.45% Conditions: Five-in-One CD (NOW Checking or Savings account required) – $2,500 to open; 1st year: 0.75% APY, 2nd year: 1% APY, 3rd year: 1.25% APY, 4th year: 1.5% APY, 5th year: 2.75% APY; interest is transferred monthly to linked checking or savings account ($1,000 minimum balance required); 7-day grace period at each annual maturity to close CD or withdraw, but $2,500 is required to maintain CD; no additional deposits allowed after opening.
Institution name: PATELCO CU Market: Top 50 CU Maturity: 24-month APY: 1.25% Conditions: Rising Rate CD – $1,000 to open; year 1: 1% APY, year 2: 1.5% APY.
Institution name: PATELCO CU Market: Top 50 CU Maturity: 36-month APY: 1.75% Conditions: Rising Rate CD – $1,000 to open; year 1: 1.5% APY, year 2: 1.75% APY, year 3: 2% APY.
Institution name: PNC Bank Market: Detroit Maturity: 36-month APY: 0.44% Conditions: Super Six Step Rate CD – $2,500 to open; rate increases every 6 months; 1-6 months: 0.15% APY, 7-12 months: 0.25% APY, 13-18 months: 0.4% APY, 19-24 months 0.5%, 25-30 months: 0.6% APY, 31-36 months: 0.75% APY. At the end of each period, there is a 10-day window when the funds may be accessed without penalty.
Institution name: PNC Bank  Market: DC Metro Maturity: 36-month APY: 0.44% Conditions: Super Six Step Rate CD – $2,500 to open; rate increases every 6 months; 1-6 months: 0.15% APY, 7-12 months: 0.25% APY, 13-18 months: 0.4% APY: 19-24 months: 0.5%, 25-30 months: 0.6% APY, 31-36 months: 0.75% APY. At the end of each period, there is a 10-day window when the funds may be accessed without penalty.
Institution name: PNC Bank  Market: Philadelphia Maturity: 36-month APY: 0.44% Conditions: Super Six Step Rate CD – $2,500 to open; rate increases every 6 months; 1-6 months: 0.15% APY, 7-12 months: 0.25% APY, 13-18 months: 0.4% APY, 19-24 months: 0.5%, 25-30-months: 0.6% APY, 31-36 months: 0.75% APY. At the end of each period, there is a 10-day window when the funds may be accessed without penalty.
Institution name: Queens County Savings Bank Market: New York Metro Maturity: 21-month APY: 1.04% Conditions: Step-Up CD – $2,500 minimum; 1.04% blended APY; Rate changes every 7 months; 1st 7: 0.75%, 2nd 7: 1.04%, 3rd 7: 1.34%. Every 7 months you can withdraw funds during 7-day grace period but must maintain $2,500 balance.
Institution name: TD Bank, N.A. Market: Philadelphia Maturity: 3-year APY: 0.33% Conditions: Step Rate CD – $250 to open; 1 penalty-free withdrawal each year within 10 days after each anniversary date; rates: year 1: 0.25% APY, year 2: 0.3% APY, year 3: 0.45% APY.
Institution name: TD Bank, N.A. Market: Philadelphia Maturity: 5-year APY: 0.64% Conditions: Step Rate CD – $250 to open; 1 penalty-free withdrawal each year within 10 days after each anniversary date; rates: year 1: 0.35% APY, year 2: 0.4% APY, year 3: 0.55% APY, year 4: 0.7% APY, year 5; 1.2% APY.
Institution name: TD Bank, N.A.  Market: Boston Maturity: 3-year APY: 0.33% Conditions: Step Rate CD – $250 to open; 1 penalty-free withdrawal each year within 10 days after each anniversary date; rates: year 1: 0.25% APY, year 2: 0.3% APY, year 3: 0.45% APY.
Institution name: TD Bank, N.A.  Market: Boston Maturity: 5-year APY: 0.64% Conditions: Step Rate CD – $250 to open; 1 penalty-free withdrawal each year within 10 days after each anniversary date; rates: year 1: 0.35% APY, year 2: 0.4% APY, year 3: 0.55% APY, year 4: 0.7% APY, year 5: 1.2% APY.
Institution name: The Huntington National Bank  Market: Detroit Maturity: 24-month APY: 0.13% Conditions: Stepped CD – $1,000 minimum, $99,999.99 maximum; penalty-free withdrawal after 12 months (must withdraw entire balance); interest rate increases every 6 months: 1st 6: 0.05% APY, 2nd 6: 0.1% APY, 3rd 6: 0.15% APY, 4th 6: 0.2% APY.
Institution name: Wells Fargo Market: Philadelphia Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum. Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (.06%), 7-12 months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.
Institution name: Wells Fargo Market: San Francisco Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum – Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (0.06%), 7-12 months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.
Institution name: Wells Fargo  Market: Dallas Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum – Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (0.06%), 7-12 months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.
Institution name: Wells Fargo  Market: DC Metro Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum – Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (0.06%), 7-12-months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.
Institution name: Wells Fargo  Market: Houston Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum – Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (0.06%), 7-12 months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.
Institution name: Wells Fargo  Market: Los Angeles Maturity: 24-month APY: 0.16% Conditions: Step Rate CD – $2,500 minimum – Rate increases every 6 months (bonus APY available when linked to PMA Prime Checking or PMA Premier Checking): 1-6 months: 0.01% APY (0.06%), 7-12 months: 0.11% APY (0.16% APY), 13-18 months: 0.21% APY (0.26% APY), 19-24 months: 0.31% APY (0.36% APY). Add or withdraw money for 5 business days starting on each of the days that the interest rate increases as long as $2,500 balance is maintained.

A total of 150 institutions — the 10 largest banks and largest thrifts in each of 10 U.S. markets, plus the nation’s 50 largest credit unions — were surveyed March 8-16, 2016, for their offerings on liquid CDs, bump-up CDs, step-up CDs and callable CDs. Some of the offers appear in more than 1 category if they contain features of more than 1 type of product.

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