While the FED continues to aggressively raise rates, banks and credit unions have begun to lift the APYs (annual percentage yield) on their CDs (certificates of deposit) and other deposit accounts in the second half of 2022 as well.

Some banks and credit unions are even offering promotional CDs (sometimes referred to as Special CDs or Bonus CDs) on top of their standard suite of CDs.

These accounts generally feature higher yields than the institution’s standard set of CD accounts and may come with oddball maturity terms rather than the standard increments of 6, 12, 18 or 24 months, etc.

There are also common promotional CDs that allow for certain exceptions if you need funds early or if you’d like to take advantage of rising rates. These are:

• “Bump-Up”, “Step-Up”, “Step-Rate”, or “Raise Your Rate” CDs. All of these promotional certificates of deposit allow for you to receive one or more rate bumps (if rates are rising) during your CD’s term. Generally CDs feature fixed rates all the way through their term, but these promotional CDs make an exception to that rule.
• “No-Penalty CD”. The no-penalty CD allows for you to make one or more withdrawals during the life of your CD without incurring a penalty fee. Standard CDs almost always come with penalty fees that eat away at your interest if you need your funds prior to maturity. However, the “No-Penalty” promotional CD makes an exception to that rule.

In terms of rates, some banks and credit unions may provide promotional CDs with exceptional APYs but they may also cap the amount in which you can earn that advertised yield.

So for instance, an offer may be something like 5.00% APY on deposits up to $10,000 with an APY of 1.00% on any amount greater than $10k.

Another last asterisk you may come by when searching for promotional deposit accounts is the requirement to set up additional accounts with the institution (typically a checking account) and even a monthly recurring deposit to the account. You typically won’t see this requirement with a fixed-rate promotional CD, but you may with a promotional variable rate savings account such as a money market account, online savings or rewards checking account.

Lastly, with many promotional certificates of deposit, the bank or credit union may require you to be a new customer with the institution. Or if already a customer, to deposit new funds that weren’t already in an account with them.

Just be sure to read the fine print associated with any promotional savings rates to make sure you’re meeting any potential requirements on your part.

Best Promotional CD Rates

Below are our top picks for the best promotional CDs on the market today. We monitor hundreds of CD rates daily from FDIC-insured banks, NCUA-insured credit unions and even brokerages, but if you feel we’re missing a noteworthy promotional CD account please reach out to hello@apyguy.com to let us know!

Sun East Federal Credit Union – 6 month Certificate Special

Although Sun East Federal Credit Union is a smaller credit union in the Northeast, they allow membership nationwide by joining the Sun East Foundation with a $10 donation. They currently offer two Certificate Specials. Both come with an APY of 4.00% but the 6 month option comes with a $1,500 minimum deposit whereas the 9 month option requires a minimum deposit of just $500.

Both Certificate Specials will automatically renew into a standard 12 month CD with the going APY at that time.

NASA Federal Credit Union – CD Promotions

NASA Federal Credit Union has a handful of promotional CDs with exceptional yields available to both new and existing customers as long as they deposit a minimum of $10,000 in new money to the account.

Upon maturity the 9 month CD will automatically renew into a standard 6 month CD and the 15 month CD will renew into a standard 12 month CD.

As with Sun East Federal Credit Union, NASA Federal Credit Union also allows for membership nationwide. Consumers across the country can join by getting a complimentary affiliated Membership to the National Space Society (NSS).

BMO Harris Bank – CD Specials

BMO Harris Bank offers a handful of “CD Specials” but their rates vary by location. We surveyed their CD Specials in California and found the following offers:

BMO Harris Bank is FDIC-insured. All CD Specials require a minimum deposit of $5,000.

Ally Bank – Raise Your Rate CD and No Penalty CD

Ally Bank is well known for offering these types of promotional CDs. They are available to consumers throughout the country and neither products come with any minimum deposit requirement.

The 2 year “Raise Your Rate” CD allows you to bump your rate once during the life of the CD and the 4 year “Raise Your Rate” CD allows for 2 rate increases. You can see all of Ally Bank’s CD rates in our full review.

Citibank – Featured Rate and No Penalty CD

The big banks have been slower to keep up with CD and savings rates in this rising interest rate environment, however Citibank has begun peppering in some enticing promotional CDs to go along with their rather mundane standard CDs.

Citibank currently offers a couple “Featured Rate CDs” with respectable yields as well as a competitive 12 month No Penalty CD. See rates below.

The 12 month No Penalty CD allows for you to withdraw all of your funds prior to the CD’s maturity. You must, however, withdraw the entire deposit. No partial withdrawals allowed.

Final Thoughts

When shopping around the best CD rates, be sure to see if the bank or credit union offers any promotional CD accounts.

While these tend to come with higher APYs, just remember they may have special requirements such as higher minimum deposits or new money only, etc.

Also be aware of the grace period of your promotional CD. This is the window of time that you have upon the CD’s maturity to withdraw any or all funds penalty-free before it automatically renews. Most promotional CDs will automatically renew into a less attractive standard CD if nothing is done during the grace period.