I learned about Add On CDs last year. They are a product where the customer can add additional funds to the CD, at any time, either limited or unlimited, and get the original rate of the CD. This is fantastic for a decreasing interest rate environment, like the kind we are currently in.
NFCU is the place where I learned about this. Are there any other banks or credit unions that the group knows of that offers this?
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I know of 3 off the top of my head but I’m sure there are many more.
Bank5Connect has a 24 month investment CD that allows for add ons. The interest rate is average to below average at just 2.10%.
Mountain America Credit Union allows any of their CD’s to be opened as add on CD’s. Their current interest rates are also average to below average although I think their 60 month 2.3% CD is a decent hedge against lower rates as you can open with as low as $5. It does, however, require at least a $10 monthly deposit.
PSECU CD’s have a non-traditional add on capability in that you must set up re-occurring monthly transfers to add on to the CD on a regular basis. You cannot increase the amount of the re-occurring transfer to the CD but can decrease or stop at anytime. Rates are solidly below average at this time however just a few months ago they had great rates for example 3.25% for a 3 year.
Note: Both credit unions have fairly easy nationwide membership requirements or at least did when I joined.
GTE Financial also offers add on cds.
I was denied membership there back when they were offering very good rates but YMMV.