Deal or No Deal: Bump-Up Certificates of Deposit

Short-term CDs that adjust your rate higher may not be a good deal.

Mature couple doing family finances at home
(Image credit: Copyright: Andrey Popov)

As short-term interest rates climb, albeit at a snail’s pace, a certificate of deposit that allows you to increase the rate during its term may look appealing. With such a bump-­up CD, you may lift the rate one or more times (depending on the issuer’s rules) to a higher rate offered by the bank.

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Lisa Gerstner
Editor, Kiplinger Personal Finance magazine

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.