T. Rowe Price Savings Bank of Baltimore unveiled Smart Ladder CDs, which allow investors to invest equally in certificate of deposit accounts with one-, two-, three-, four-, and five-year initial terms.
Each CD automatically renews into a five-year term at its respective maturity date regardless of its original term. This differs from the traditional method of renewing a maturing CD into the same term.
Investors fill out only one application and are eligible for jumbo and mini-jumbo interest rates based on their combined balances in the ladder and not the individual CD balances.
Customers have the choice of receiving payments as often as monthly or leaving interest in the account to realize the benefits of compounding. The minimum deposit is $25,000.
T. Rowe Price Savings Bank, which announced the CDs Tuesday, is a unit of T. Rowe Price Group, a global investment management organization. At midyear T. Rowe Price Group had assets of $387.7 billion.
