the rep i just spoke with said you can only roll it into a higher rate with the 24 months and higher cd's.
Please explain?
What's the retention bonus? and can you give me a link for this deal? also what does it mean 60 days interest penalty? sounds cool
You have to ask for a retention or loyalty bonus when your CD is up to renew instead of close it.
I calculated the interest penalty as follows, based on the current 3% APY on a 5 year CD with the retention bonus.
$10,000 5 year CD at 3% APY after 5 years =$11,589.26
$10,000 5 year CD at 3% APY after 1 year with 2 month penalty=$10,248.87, or 2.49% effective APY.
$10,000 5 year CD at 3% APY after 2 years with 2 month penalty=$10,555.70, or 2.74% effective APY.
$10,000 5 year CD at 3% APY after 3 years with 2 month penalty=$10,871.72, or 2.83% effective APY.
$10,000 5 year CD at 3% APY after 4 years with 2 month penalty=$11,197.30, or 2.87% effective APY.