Bill > SB592

This bill requires financial institutions to automatically renew certificates of deposit (CDs) under specific conditions when the account holder has not provided explicit renewal instructions. When a CD is set to mature, the financial institution must renew the CD at the highest fixed interest rate available that most closely matches the term of the previous CD and for the exact same duration as the original CD. For example, if a customer had a 12-month CD at 3% interest and did not provide specific instructions about what to do when the CD matures, the bank would be required to automatically renew the CD for another 12 months at the highest available 12-month CD rate, which might be 3.5%. This legislation aims to protect consumers by ensuring they continue to earn the most competitive interest rate possible when they do not actively manage their CD investments, potentially preventing situations where CDs might otherwise be renewed at lower default rates.

Business and Industry

https://arkleg.state.ar.us/Bills/Detail?id=sb592&ddBienniumSession=2025%2F2025R