Adjustable-rate CDs may extend up to 36 months in maturity and allow the investor to renegotiate the interest rate once during the life of the CD.

Question

Quizplus · Accepted Answer

Adjustable-rate CDs (Certificates of Deposit) indeed offer the flexibility to renegotiate or adjust the interest rate at least once during the term of the CD, which can extend up to 36 months or more, depending on the specific terms set by the issuing financial institution. This feature provides investors with the opportunity to benefit from rising interest rates.

Adjustable-Rate CDs May Extend Up to 36 Months in Maturity