NEW YORK, April 11, 2011 /PRNewswire/ -- With interest rates projected to increase, consumers are reluctant about committing money to multi-year CDs. To help consumers evaluate what rising rate CD options are available, Bankrate.com has released a survey of liquid, bump-up and step-up CDs at the 5 largest banks and 5 largest thrifts in each of 10 large U.S. markets, plus the nation's 50 largest credit unions. The results of the survey can be found here: http://bankrate.com/finance/cd/rising-rate-cds-flexibility-with-a-price-1.aspx.
Here's a peek at various CD options:
- Liquid CD: Permits one or more withdrawals during the term of the CD without penalty, but there is usually a price to pay for the flexibility.
- Bump-up CD: Provides investors with the option to increase the rate one or more times during the term of the CD. However, there is a tradeoff in the form of lower initial interest rate that the consumer can potentially offset if rates rise fast enough.
- Step-up CD: Offers specified rate increases at pre-determined intervals during the term of the CD. Although not as widely available, some compare very favorably against traditional CDs.
"Higher interest rates are inevitable and Bankrate's survey helps consumers understand these alternative CD products," said Bankrate's senior financial analyst, Greg McBride, CFA. "But terms vary widely so it is important to shop around and compare versus traditional CDs and top-yielding savings accounts."
To learn more about rising rate CD options, please visit Bankrate's new video:
Greg McBride, CFA will be in New York City and is available to discuss the findings of the survey and how your audience may benefit from these products.
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers. Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009. Apax operates across the United States, Europe and Asia and has more than 30 years of investing experience. For more information on Apax, visit: www.Apax.com.
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SOURCE Bankrate, Inc.