A step – up CD is also referred as a bump – up CD, which is a common type of certificate of deposit, issued with a fixed rate of interest and the issuing authorities offer the customers additional options for increasing the rate during the deposit term. The issuing authorities allow the rate of CD to bump –up or increase the rate to the current prevailing higher market rate while maintain the …

Certificates of deposits are the most common investment option available these days, which are comparatively low in risk, and yield high interest rates than any kind of savings account. There are many kinds of certificates of deposit evolved over time, to suit the needs of investors wanting risk free methods of investing in a fluctuating market. Step up CD is one such certificate of deposit that gives the advantage of changing the …