Step up CD’s move up to be the favorite among customers

The certificate of deposit is undoubtedly one of the safest investment options in the current time when most of the others are extremely volatile. However, the low rate of interest being of offered by banks and financial institutions on the certificates of deposit has always been the pet peeve of many who opt for this form of investment. There are a number of variations of CDs being offered by banks and customers can choose from them based on the tenure they intend to invest for and the amount they intend to deposit. Though most of the new age certificates of deposit are beneficial for the consumers, it is the “Step Up” CD, also called the “Bump Up” CD that is the most beneficial.

This does not come as a surprising fact considering that this is one type of CD that allows the customers benefit from the improving market condition and opt for a higher rate of interest during the tenure of the CD. This is one feature that sets it apart from the rest of its counterparts as well. Many customers are always apprehensive that the market rates may go up once they close the CD and hence, they may not be able to get the best returns. The Step Up CD has been exclusively implemented for such customers. In today’s world where the prices of all commodities are increasing by the day, earning an extra dollar can do a world of good tomorrow.

Before you opt for the Step Up CD, it is important to read and understand the terms and conditions being offered by the bank. Though you can choose a higher rate of interest during the tenure of the certificate of deposit, most banks allow you to opt for it just once. This may prove to be a drawback to some consumers who want to make the most of their investment. However, for those who don’t mind this restricting clause, this CD will prove to be very advantageous.

There are banks that offer the option of changing the interest rates more than once during the duration of the CD, but you will have to shop around extensively to find such deals. One such bank that offers consumers an option of varying their interest more than once is the First National Bank of Western Union in Iowa.