Like most bankers we are tired of rate shoppers moving their CD money from bank to bank. I have been asked by management whether or not we can set up some type of rate incentive for those CD customers (that have no other relationship with us) to open another account (savings or checking). At the time of their next renewal we would contact them and state that they would get a 1/4% increase over our existing rates if they open up another account with us. Obviously where this gets tricky is the rate would not be offered to established customers that also have maturing CDs. Although I suppose if they heard about it from a neighbor, we would offer it to them too.
Do you see any regulatory problems with this rate bump promotion? (other than it could be a "PR" nightmare and tough for the frontline bankers)

Bump

My experience with this concept is that the folks open the account, put in the minimum required for the higher CD rate - and then look for a way to take the balance down as low as it can go without incurring a service charge - These accounts RARELY get used as a transaction account......
Unless your program is detailed and fully automated these programs generate more work than they actually benefit you.

RBanker, Thank you for your thoughts.