Bump rate CD

[Free bird]

When is a good time to activate the bump feature on CDs? I have multiple 5 year CDs with 41 months remaining. The rate is 2.72%. The rate on a new 60 month CD is 3.51%. Is now the time to exercise the bump feature or wait until January/February? Do half now half later? What is your rate outlook for the next 3-9 months?

 

[jazz4cash]

I would compare the improved rate to a CD with a 36-48 month term which appears to be ~3%. Based on that I would start moving now.

In 3 months, I expect rates will be higher, but not enough to wait. In 9 months anything could happen. I would start now and take advantage of the improved rate over the next 3 months if you want to hedge, or just get it done now.

 

[Free bird]

Bumped half. If the fed hikes rates this month I will bump the other half in December. Have more maturing in January. If they hike in January I will do more in February. At some point the fed will hit an inflection point. Maybe they have already. They're digging out of a big hole.