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#2272435 - 07/06/22 01:38 PM CD renewal - interest rate
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,262
Wisconsin
Our CFO wants to offer a CD that is for new money only at a higher rate than our existing CD rates (e.g. 12 month at 1.5%). So for existing CDs that may be maturing, are we obligated to pay out at the new rate or can we renew them at their existing rate?

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#2272436 - 07/06/22 02:24 PM Re: CD renewal - interest rate CSB98
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Banks run "new money" campaigns all the time. Just make sure you define what new money is and make sure you have controls in place so there is no cheating, as then you get into unfair banking territory. New money normally would not be defined to include money that is already on deposit.

And I hope that rate is not what he is actually wanting to do, as you can get 12 months CDs for 2.7% out in the marketplace.
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#2272437 - 07/06/22 02:25 PM Re: CD renewal - interest rate CSB98
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,262
Wisconsin
That is not the rate . . . just an example. smile Thanks for the feedback.

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