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While most CDs offer fixed rates, there are some flexible CD options to choose from.
Read on to learn how bump-up CDs operate and whether they might be the right investment option for you.
Quick Take: What Is a Bump-Up CD?
How Do Bump-Up CDs Work?
Early withdrawal penalties still apply.
Here are the pros and cons to know.
Pros
Cons
When Are Bump-Up CDs Worth It?
Consider the number of allowed bumps and the minimum deposit requirement.
Traditional CD
How do bump-up CDs compare to traditional CD accounts?
Bump-up CDs lock your funds in for a fixed length of time and charge penalties for withdrawing funds early.
Plus market-linked CDs may come with high fees and stiff penalties.
Why Consider a Bump-Up CD?
Bump-up CDs give you flexibility during a time of interest rate uncertainty.
Should You Choose a Bump-Up CD?
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