Interest rates have gone up, but the bank refuses to raise the rate on my CD. Why?

When you open a CD, you enter into a contract involving a fixed amount of money (principal) for a predetermined period of time (the term) and an agreed-upon interest rate and yield. The bank is simply honoring the terms of the contract; it is not obligated to change those terms when interest rates change.

Please refer to the Deposit Account Agreement you received when you opened the CD for the terms and conditions of the account.