The second major flex category is the so-called “no penalty” or “risk-free” CD, which lets savers exit the CD before maturity without a financial penalty. This can come in handy if you need access to your money right away. “Another option is if you don’t like the rate you can get out of it with no penalty,” says Doug Johnson, vice president of risk management policy at the American Bankers’ Association.

A short while ago I signed up for a 9-month certificate of deposit from Bank of America (Stock Quote: BAC) yielding 2.5% with no penalty if I needed to suddenly withdraw my cash before the maturity date. I’m glad I signed up when I did because at last check the same product if I were to sign up today is yielding 1.85%. Timing is everything, but unfortunately it is anyone’s guess about where interest rates are headed. “There are differing opinions as to when we’re going to see a rise in interest rates and how much of a rise that will be,” says Johnson.

Know the Drawbacks
There are a few drawbacks to flex CDs. The biggest catch is that most of these products require a relatively higher deposit, usually starting around $5,000. Traditional CD minimums can start as low as $500. Also, with bump-up CDs you typically only get one chance to raise your rate. Finally, flex interest rates tend to be slightly lower, usually about by half a percentage point. But then again, you’re not totally locked in. “You tend to earn less than the traditional CD, but the tradeoff is convenience,” says Mills.

To compare CD products and rates, please visit BankingMyWay.com.

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