Promotional Certificate of Deposit (CD) Rate: What It Is, How It Works
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What Is a Promotional Certificate of Deposit (CD) Rate A promotional certificate of deposit (CD) rate offers an attractive opportunity to earn higher returns than a traditional certificate of deposit (CD), which requires higher minimum requirements when opening the new CD. The promotional CD rate is also known as the bonus CD rate. It is a financial product offered by banks and credit unions, available for a limited period to retain and encourage existing clients to deposit more funds and induce new clients. Understanding how promotional CD rates work and how they compare to regular CDs helps you make smarter financial decisions fit for your financial goals . Promotional CDs Key Takeaways: Promotional CDs are time-sensitive, and provide a compelling opportunity to secure a promised rate of returns on your savings which is higher than a regular CD for the same terms. Promotional CDs cease promotional rates as their maturity ends and renew into a standard CD at competitive rate