Marcus By Goldman Sachs Now Offering A 20-Month Rate Bump CD— Forbes Advisor – Forbes Advisor – Technologist

Marcus by Goldman Sachs now offers a 20-Month Rate Bump CD that earns 4.40% APY. If the stated APY increases during your term, you can request the higher rate to be applied to your account. Keep in mind, though, that you can only do this once during the 20-month term. Notably, you can also deposit more money into your account when requesting a rate increase.

The Marcus by Goldman Sachs Rate Bump CD can be opened with a minimum deposit of $500.

Annual percentage yields (APYs) and account details are accurate as of February 9, 2024.

How To Qualify for a Higher Rate

To increase your Rate Bump CD APY if a better rate becomes available, you must meet the following requirements:

• Your CD has a balance of at least $500 and is past the 10-day CD Rate Guarantee period.
• The available rate is higher than your existing rate.
• You have not increased your rate previously.

If you qualify, you’ll submit a Rate Bump Request.

Submitting a Rate Bump Request

You can submit a Rate Bump Request online, through the Marcus mobile app or by calling customer service at 855-730-7283. Approved requests take a day or two to process, but new rates applied to your account are fixed until maturity. You won’t be charged a fee for changing your rate.

After submitting a Rate Bump Request, you can also add extra funds during the following 10 days. This is optional, but you might decide to deposit more money to maximize your earnings at the higher rate.

What Is a Rate Bump CD?

Marcus’s Rate Bump CD is a type of certificate commonly referred to as a bump-up CD. Like traditional fixed-rate CDs, bump-up CDs—also called raise-your-rate or bump-rate CDs—lock your money up for an agreed term length. However, unlike standard CDs, the APY you earn in a bump-up CD can change. These CDs let you request a rate increase if the stated rate for new accounts is higher than the one your account is earning.

You must request CD rate bumps yourself and are responsible for keeping track of available rates for your account. The amount of times you can increase the APY on a bump-up CD varies by bank and term length, but most accounts only permit one increase per term.

If you open a 12-month bump-up CD with a 3.00% APY, you’re locked into that rate until you request a change. If the stated APY for the 12-month term increases to 3.25% APY, you can ask to apply this rate to your account for the rest of its term. Bump-up CDs are most useful when CD rates are going up, so it’s important to follow CD rate trends if you’re going to open one.

Other Marcus by Goldman Sachs CD Rates

While the rate on a 20-Month Rate Bump CD is competitive at [banking_product_CD_APY_XM pid=”951367″] APY, many of the Marcus by Goldman Sachs High-Yield Certificates of Deposit are even better. In fact, the bank has some of the best CD rates around, with a few terms topping 5.00% APY. Here are the most attractive High-Yield CDs the bank offers.

• 6 months: 5.05% APY
• 9 months: 5.10% APY
• 12 months: 5.15% APY
• 18 months: 4.80% APY

The Marcus No-Penalty CD permits fee-free early withdrawals and earns 4.70% APY on its 13-month term