How Special Interest Rate CDs Work | Banking Advice
Key Takeaways
- Promotional CDs reward investors with higher-than-normal rates.
- A promotional CD might come with a special term or a high minimum deposit.
- Some financial institutions provide promotional CD rates to existing customers.
Financial institutions offer a variety of certificates of deposit with different interest rates. Some banks and credit unions even let you take advantage of promotional CDs, which provide higher interest rates for accounts with unconventional terms, higher minimum deposits or both.
What Are Promotional CDs?
A promotional CD, also known as a CD special, enables you to earn a higher-than-average annual percentage yield on an account with an unconventional term or a higher minimum deposit. Or you might be able to score a financial institution’s higher promotional APY if you’re already a customer.
CDs typically come with terms like 3, 6, 12 or 18 months. But a bank might pay an APY of 4.00% on a 7-month CD with a minimum deposit of $1,000, or a 12-month CD might earn an APY of 4.25% with an elevated minimum deposit of $100,000.
The table below shows examples of some promotional CD rates as of Oct. 13, 2026. (APYs may vary by location.)
How Promotional CDs Work
Similar to a traditional CD, a promotional CD earns interest on money that an investor deposits for a certain period. Both products tend to pay higher APYs than savings accounts.
The account generally accumulates interest at a fixed rate until the CD matures. Typically, a CD matures anywhere from 3 months to 10 years from the time it’s opened.
What sets a promotional CD apart from a traditional CD are its higher-than-usual APY and the special conditions attached to the account.
For example, a bank might pay a 4.15% APY for a 4-month CD with a minimum deposit of $1,000 but 0.02% for a 3-month CD with the same deposit requirement. Or a credit union might pay a 4.25% APY for a 12-month CD with a $100,000 deposit but a 2.80% APY for a 3-month CD with the same deposit requirement.
Financial institutions also might pay a promotional rate for a CD if you’re an existing customer. For example, Wells Fargo offers a “relationship APY” of 3.75% for a 4-month CD if it is linked to a Wells Fargo Prime Checking, Premier Checking or Private Bank Interest Checking account. The non-relationship APY for the same CD is 3.49%.
Pros and Cons of Promotional CDs
Pros
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Many financial institutions offer promotional CDs.
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In some cases, a promotional CD might pay one of the best APYs for that type of account.
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The APY remains the same through the CD’s term.
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Putting some of your money into a CD lets you spread around your investment risk.
Cons
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Depending on the term you’re seeking, other savings products might offer a better APY for your situation.
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To earn the promotional rate, some CDs might require a hefty minimum deposit.
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When you open a CD, you commit to keeping your money there until the CD matures. If you withdraw money early, you may be hit with a financial penalty.
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Once a promotional CD matures, the APY might drop if your money rolls over into a new account.
Are Promotional CD Rates Worth It?
A promotional CD may be worth it if you don’t mind following special rules, such as making a big minimum deposit or being an existing customer. However, be sure to shop around when you’re thinking of opening a CD. While a promotional CD might be enticing, you may find more attractive terms or rates with a traditional CD.
