Our bank is considering giving IRA Customers who are over 59 1/2 the option of "rate bump" one time during the term of their CD if they have a CD that is 24 months are longer. I have been unable to find any required disclosures for this process, and wanted to find out if any other institutions had this practice.

We offer something similar.

A customer is able to exchange the rate one time during the term if the rates increase for this account type. They are also able to add to the CD at that time.

We state in our disclosure that the new interest rate will be in effect for the remaining term. We also state that increasing the rate or adding to the CD will not extend the maturity date.

Nothing else changes. The compounding, minimum balance requirement and early withdrawal penalty we disclosed when the account was opened still apply.

We have offered these for many years. Couple of points to consider.....
Remember to include in your TISAs that it is a variable rate product, because by allowing rate bump, it becomes one. Also, you should make it clear that a rate bump is allowed during the initial term only (not on sucessive renewals of the CD). Then get customer to initial and date when they exercise the rate bump (and obviously you change you computer to the new rate).
Our experience is that we shave the rate going in, because customers think it is such a good deal they will take a lower rate than the current market and then, the good news for the bank is that 99% NEVER return to ask you about bumping their rate during the term! It's a win-win.

Good luck.

Would anyone be willing to share their modified TISA disclosure and CD contract, we are considering doing the same thing?
PM if possible. Thanks a lot