CD renewal - interest rate

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?

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.

That is not the rate . . . just an example. Thanks for the feedback.