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Bump rate CD
Old 11-02-2018, 08:02 AM   #1
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Bump rate CD

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?
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Old 11-02-2018, 08:52 AM   #2
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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.
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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Old 11-02-2018, 11:25 AM   #3
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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.
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