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.

Senate Bill 592 would require financial institutions to automatically renew certificates of deposit (CDs) for customers who do not provide specific renewal instructions. This bill mandates that such renewals must occur at the highest fixed interest rate available for a term closest to the original CD's term. Furthermore, the renewed CD must be for the same duration as the previous one. This legislation directly affects financial institutions and their customers holding certificates of deposit.