Bump It Up Certificate of Deposit

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bump-it-up-certificate-of-depositBump It Up Certificate of Deposit? Professional Bank of Coral Gables Florida is offering a new certificate of deposit they call "Bump-It-Up-CD".

What make this certificate of deposit different is it allows you to take advantage of any future increase in interest rates by “bumping up” the annual percentage yield (APY). Something that sounds very appealing considering interest rates are so low right now and government policies to rescue us from financial calamity will fuel inflation and higher interest rates in the very near future.



How does this CD work? The "Bump-It-Up" rate is the prime rate calculated by the Wall Street Journal minus ½%. If the prime rate decreases your CD rate will not decrease, you are still guaranteed the original APY. You can only bump-up your CD rate one anytime time after the first three months of the certificate of deposit's life.

The minimum deposit is $5,000 for a 12 month CD or 18 month CD. The APY on both CD terms is currently 2.75 percent. One of the best cd rates available for a 12 month CD. Deposits are FDIC insured.
 
Author: Brian McKay
June 9th, 2009