What is a promotional CD rate?

A promotional CD rate is a special, limited-time certificate of deposit offer from a bank or credit union that pays a significantly higher rate than their standard CD rates — often to attract new deposits or compete with online banks. Promotional CDs typically have non-standard terms (such as 7, 10, 13, or 25 months), require 'new money' from outside the institution, and are available only for a specific window. The rate is fixed for the promotional term but does not automatically renew at the same rate.

Are promotional CD rates better than online bank CD rates?

Sometimes, but not always. The best promotional CD rates from traditional banks (4.50%–5.00%+ APY) can match or exceed what online banks consistently offer. However, online banks like Marcus, Ally, and Discover offer competitive rates year-round without promotional windows — you don't need to time your deposit. Promotional CDs require you to catch the offer at the right moment and use new money. If you're flexible on timing, an online bank may be simpler.

What is 'new money' and why does it matter for promotional CDs?

Many promotional CD offers require 'new money' — funds transferred from an account at a different bank. If you try to fund the promotional CD by moving money from a checking or savings account at the same bank, you typically will not qualify. This restriction is how banks use promotions to attract external deposits rather than simply repricing existing customers' money.

What happens when a promotional CD matures?

This is the critical pitfall: most promotional CDs auto-renew into a standard CD at the bank's current standard rate — which is often far lower than the promotional rate. At a big bank, this could mean your funds roll into a CD paying 0.01%–0.50% APY instead of the promotional 4.50%+ APY. Always act during the grace period (typically 7–10 days) to withdraw, transfer, or select a better term.

Where can I find current promotional CD rates?

Check the websites of Bank of America, Chase, Citibank, Wells Fargo, TD Bank, US Bank, and regional banks directly — promotional offers are usually featured prominently on their CD or savings pages. Bankrate and NerdWallet track some promotions. Credit unions frequently offer promotional rates to members; check your local credit union's website. Promotional offers change monthly, so check frequently if you're looking for a specific rate.

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 well above their standard CDs — sometimes 4.50%–5.00%+ APY at traditional banks that normally pay 0.01%–0.50%. In May 2026, several major banks are running promotional CD offers that rival the best online banks.

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

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:

Rate vs. term — What APY and for what exact term? Non-standard terms (7 months, 13 months, 25 months) are common in promotions.
New money requirement — Does the offer require funds from outside the bank? Moving money internally usually disqualifies you.
Minimum deposit — Most promotional CDs require $1,000–$10,000 minimum. Some credit union promotions require membership.
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.

Where Banks Typically Offer Promotional CDs

Major traditional banks that commonly run promotional CD offers:

Bank	Typical Promotional Terms	Approximate Promotional Rate
Bank of America (Featured CDs)	7, 10, 13, 25 months	4.50%–4.75%+ APY
Citibank	3, 6, 12 months	4.50%–5.00%+ APY
Chase	Occasional	1.00%–2.50% APY
Wells Fargo	Occasional	1.00%–2.00% APY
TD Bank	Occasional	4.00%–4.50%+ APY
Regional banks/credit unions	Varies	4.00%–5.00%+ APY

These are estimates based on publicly available historical patterns. Promotions vary widely and are not always active. Check institution websites directly for current offers.

Chase and Wells Fargo’s promotional rates tend to be lower than online banks even during promotions. Bank of America’s Featured CDs and Citibank’s promotions are typically the most competitive among the big-four banks.

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 0.01%–0.50% APY → 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

A promotional CD that auto-renews at 0.01% APY after paying 4.75% APY effectively pays an average of about 2.5% over two years combined — much worse than an online bank CD that consistently pays 4.50%–4.70%.

Promotional CD vs. Online Bank CD

	Promotional CD (Big Bank)	Online Bank CD
Rate when available	4.50%–5.00%+ APY	4.50%–4.80% APY
Availability	Limited time only	Always available
New money required?	Usually yes	No
Renewal rate	Low (0.01%–0.50%)	Same competitive rate
Monitoring required	Yes — track maturity carefully	Less critical
FDIC insurance	Yes	Yes

The core trade-off: Promotional CDs require you to monitor and act. Online bank CDs offer consistently good rates with less management. If you’re disciplined about tracking maturity dates, promotional CDs can be an excellent short-term option at traditional banks. If you’d rather set and forget, an online bank is simpler.

How to Find Current Promotional CD Offers

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
Check your local credit union — credit unions frequently offer promotional share certificate rates to attract deposits from members; these are often excellent
Check Bankrate and NerdWallet CD roundups — these sites track some promotional offers, though they may lag by days or weeks
Ask at your bank branch — sometimes promotional rates are available in-branch that aren’t advertised online, particularly for larger deposits
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 0.10% APY. She notices Bank of America is running a Featured CD at 4.75% APY for 13 months with a $1,000 minimum.

She transfers $20,000 from her external savings account (new money from another bank)
She earns 4.75% APY for 13 months = approximately $1,039 in interest
30 days before maturity (month 12), she sets a calendar reminder
At maturity, she withdraws the $21,039 and opens a new promotional CD at whatever rate is best at the time — or transfers to a top online bank HYSA

What she avoids: Letting the CD auto-renew at BofA’s standard 0.03% APY for another 13 months, which would earn only $6.

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.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy