Opt-Up Certificate of Deposit

Opt-Up certificate of deposit? Bank of America is offering a certificate of deposit they call "Opt-Up". The Opt-Up certificate of deposit allows you to raise the interest rate you are receiving if interest rates go up. The term on this certificate of deposit is 18 months and the rate is one of the best CD rates around these days. 

In a rising interest rate environment this certificate of deposit would be good to have, especially if you feel a need to lock into a longer term CD. The Opt-Up certificate of deposit is a lot like the "Bump-It-Up" certificate offered by Professional Bank of Coral Gables Florida.

The minimum opening balance is $10,000. The annual percentage yield is currently 1.75%. If certificate of deposit rates rise you contact the bank and ask them to increase the interest rate. You can only contact them to request an increase in the CD rate after the certificate of deposit has been open for at least six months. There is a one-time limit increase. The new CD rate only applies to the remaining term on your certificate of deposit.

Bank of America offers the following example of how a Opt-Up certificate of deposit works. "If your opening interest rate was 3.00%, after six months, if a new Opt-Up CD is offered at 3.50%, your rate could increase to 3.50% for the remainder of the term. These rates are for illustrative purposes only and not indicative of actual rates. See our current rate table or contact us for the latest rates."