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Bill

SB 592

TO REQUIRE A FINANCIAL INSTITUTION TO RENEW CERTAIN CERTIFICATES OF DEPOSIT AT THE HIGHEST INTEREST RATE CLOSEST TO THE TERM OF THE PREVIOUS CERTIFICATE OF DEPOSIT AND FOR THE SAME TERM.

2025 Regular Session Introduced by Johnny Rye and 1 co-sponsor

Arkansas bill required banks to auto-renew CDs at highest matching-term rates available, protecting savers from unfavorable renewals; withdrawn before passage.

Sine Die adjournment
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WeVote Research Nonpartisan
Bill Summary · SB 592

Legislative bill overview

SB 592 would mandate that financial institutions automatically renew maturing certificates of deposit (CDs) at the highest interest rate available for a matching term, rather than allowing institutions to renew them at lower rates or different terms. The bill was introduced in Arkansas but was withdrawn by its author on April 9, 2025, before reaching a final vote.

Why is this important

CDs are popular savings instruments for consumers seeking guaranteed returns, and renewal terms significantly affect investment outcomes. This bill addresses a consumer protection concern: some institutions renew CDs at unfavorable rates without explicit customer consent, effectively reducing returns for inattentive savers. The automatic renewal at the best available rate would protect passive investors from rate disadvantages.

Potential points of contention

  • Market operations concern: Requiring institutions to offer their highest rates to all renewal customers could compress profit margins and reduce CD product differentiation, potentially discouraging institutions from offering competitive rates overall
  • Practical implementation challenges: Defining "closest to the term" when multiple rate tiers exist and determining which specific product qualifies as "highest" creates ambiguity and compliance complexity
  • Consumer autonomy questions: Mandatory renewal at any rate—even favorable ones—overrides customer choice about whether to renew, refinance elsewhere, or redirect funds to different investments

Compiled from official sources — confirm details with the bill’s official record.

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