Promotional CD Rates 2026 — What They Are, How to Find Them, and Pitfalls to Avoid

A promotional CD is a limited-time certificate of deposit offer from a bank paying a rate above their standard CDs. As of September 2026, examples include Bank of America’s Featured CD (around 4.00% APY on a 13-month term) and Citibank’s 1-Year Featured CD (roughly 3.75%–4.00% APY, tiered by balance) — some approaching what top online banks pay, though not all promotional offers are competitive.

The catch: these rates don’t last and the renewal trap is real. Here’s how to find and use promotional CDs correctly.

Rates shown are as of September 2026 and are examples, not an exhaustive or ranked list. Promotional offers change frequently — verify the current rate directly with each bank before opening.

What Is a Promotional CD?

A promotional CD is a standard FDIC-insured certificate of deposit with one key difference: the rate is offered for a limited time or under specific conditions. Banks use promotional rates to:

• Attract deposits from new customers (“new money” from other banks)
• Compete with online banks for interest-rate-sensitive savers
• Meet short-term funding targets for their loan portfolios

Promotional CDs work exactly like standard CDs: you deposit money for a fixed term, earn a guaranteed rate, and face an early withdrawal penalty if you access funds early. The only difference is how the rate is set — and crucially, how it renews.

Promotional CD Features to Look For

When evaluating a promotional CD, check these four things:

1. Rate vs. term — What APY and for what exact term? Non-standard terms (7 months, 10 months, 13 months) are common in promotions.
2. New money requirement — Does the offer require funds from outside the bank? Moving money internally usually disqualifies you.
3. Minimum deposit — Most promotional CDs require $1,000–$10,000 minimum. Some credit union promotions require membership.
4. Renewal rate — What does the CD automatically renew to if you don’t act? This is almost always a standard rate that’s far lower.

Examples of Promotional CDs — September 2026

These are specific examples current as of mid-September 2026, sourced from Bankrate and bank-specific rate trackers — not a comprehensive survey of every bank’s promotions. Rates and available terms change frequently and can vary by location; verify directly with the bank before opening.

Promotional rates vary widely by bank and change often — a bank’s non-promotional standard CD rates typically remain far lower (commonly under 1% APY) outside these featured offers.

The Renewal Trap — The Most Important Warning

This is the most expensive mistake promotional CD users make:

A promotional CD matures → you don’t act within the grace period → the bank auto-renews it into a standard CD at a much lower standard rate → you lose months of high interest income without realising it.

The grace period at most banks is 7–10 calendar days. After that, the new CD is locked in at the standard rate.

How to protect yourself:

• Set a calendar alert 30 days before maturity — not on the maturity date, but 30 days before, so you have time to compare current rates and make a decision
• Set a second alert on the maturity date itself
• Log in to the bank account and explicitly choose: withdraw, transfer, or roll into a new CD

Promotional CD vs. Online Bank CD

The core trade-off: Promotional CDs require you to monitor and act, and their rates can trail top online banks. Online bank CDs offer consistently good rates with less management. If you’re disciplined about tracking maturity dates and find a genuinely competitive promotional offer, it can be worthwhile at a traditional bank. If you’d rather set and forget, an online bank is simpler and, as of September 2026, is often the higher-rate option.

How to Find Current Promotional CD Offers

1. Check bank websites directly — look for “Featured CD,” “Special CD,” “Limited-Time CD Offer,” or “Promotional CD” on the savings/CD pages of major banks
2. Check your local credit union — credit unions frequently offer promotional share certificate rates to attract deposits from members; these are often excellent
3. Check Bankrate and NerdWallet CD roundups — these sites track some promotional offers, though they may lag by days or weeks
4. Ask at your bank branch — sometimes promotional rates are available in-branch that aren’t advertised online, particularly for larger deposits
5. Watch for new customer promotions — switching your checking account to a new bank sometimes unlocks a promotional CD offer as part of a welcome package

Worked Example

Maria has $20,000 in a Bank of America savings account earning a low variable rate (confirm the current standard savings rate — it is typically well under 1% APY). She notices Bank of America is running a Featured CD at approximately 4.00% APY for 13 months with a $1,000 minimum.

• She confirms whether the offer requires “new money” from outside Bank of America
• If eligible, she earns roughly 4.00% APY for 13 months — using the APY compounding convention over 13/12 of a year, approximately $868 in interest on $20,000
• 30 days before maturity (month 12), she sets a calendar reminder
• At maturity, she withdraws the funds and either opens a new promotional CD at whatever rate is best at the time, or transfers to a top online bank CD or HYSA if that pays more

What she avoids: Letting the CD auto-renew into Bank of America’s standard CD rate, which is typically far below the promotional rate she originally earned.

Related Articles

• Best CD Rates of 2026
• Bank of America CD Rates 2026
• Citibank CD Rates 2026
• No-Penalty CD Rates 2026
• What to Do When Your CD Matures
• 1-Year CD Rates 2026

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.