Certificate of deposit (CD) accounts have generated strong yields for savers who locked in high rates in 2023 and 2024. Around a year ago, you could find some CD APYs up to 6%. Now many of those same accounts are approaching their CD maturity date at a time when rates are drifting lower. If you have a CD that’s about to expire in the coming weeks, it’s imperative to understand your options and be proactive. If you ignore your CD’s maturity date, it might auto-renew at a lower rate, or you could miss out on better options entirely. What should you do instead? If your CD is maturing this December, some experts recommend taking strategic steps now. Below, we’ll detail three that they suggest. Start by seeing how high your current CD rate offers are here. 3 moves to make if your CD account is set to mature this December With your CD account maturity date looming on the calendar now, experts recommend taking these three next steps now: Know your grace period and options When your CD reaches its maturity date, you have a short grace period, typically seven to 10 days, to move your funds, open a new CD or cash out your funds without a penalty. If you do nothing during this period, the bank will follow its default setting, which is usually an automatic renewal into a new CD at the bank’s current rate. Keep in mind, the grace period is the limited time in which you can withdraw or transfer your funds without penalty fees. As Geri Hopkins, chief operations officer at Skyla Federal Credit Union, points out, “It’s important to understand this period to avoid missing a deadline and unintentionally locking funds into a different term with a potentially lower rate. Savers should carefully read, review and fully understand their disclosure documents, including the fine print, or contact their bank or credit union for additional assistance.” Hopkins recommends setting a reminder a couple of months before an existing CD matures to give yourself time to review its terms and compare them with current market offerings, including their interest rates, auto-renewals and grace periods. One of the most common mistakes savers make is letting the grace period slip by, which is easy to do because it is so short. “That small window is exactly what makes it difficult to want to stay and allows it to auto-roll out of indifference,” says Charles Urquhart, founder of Fixed Income Resources and adjunct professor of finance at Loyola University Maryland. “If a CD auto-rolls, it’s most likely accompanied by a fee if you try to get it back early.” Review your current CD options here to learn more. Shop for better rates before committing CD rates are trending downward, so explore your options before your grace period ends to avoid locking in a potentially lower return with an auto-renewal. Compare rates and terms for CDs and other account types, like a high-yield savings or money market one. “The best place to start is where your funds currently are,” says Derek Elston, a client deposit services sales officer at Merchants Bank. “Ask questions and go over all available options with your current institution to make sure you are making the best judgment. Because you have the 10-day grace period, you have time to get online and see where other banks stand.” Elston recommends looking beyond the listed APY and taking a closer look at the fine print. “Things like a promotional rate or tiered rate system for higher dollar amounts are very common with CDs. Do your homework and ask questions.” Ideally, you’ll find a top CD rate substantially higher than your bank’s current rate, so you can earn a greater return on your money. But how much higher should the rate be to justify moving your money? “If you’re going to be in this for more than a year, a switch makes sense for anything between 25 to 40 basis points,” says Urquhart. Match your next move to your goals Of course, there’s no single best move when a CD matures. Whether you decide to withdraw, roll over, reinvest or ladder your funds depends on your financial situation and your goals. For example, you might reinvest in a new CD if you find a competitive rate, or you could withdraw the cash if needed. Alternatively, you could also ladder multiple CDs to balance your returns and give yourself regular access to funds. Before your CD expires, Urquhart advises to “assess your decision to invest in the CD from the start. Was it for safety, yield, liquidity? That determines whether you should roll, ladder or redeem.” Start by thinking about when you’ll need the money and then choose a term that matches your goals. “If you’ll need cash in the next year, stay short. If this is excess long-term cash, construct a CD ladder to mature every six to 12 months so a portion of your assets is always coming due within a new rate environment every year or so,” says Urquhart. If you need access to your money, a high-yield savings account is a good option because you can withdraw your funds at any time without a penalty. If you have a short-term goal and want a safe place to keep your money, a Treasury bill also makes sense because it pays a guaranteed amount at maturity. The bottom line Deciding what to do when your CD matures is a serious decision, especially so in today’s unique interest rate climate. Your money-and potential earnings-are on the line. Don’t ignore the maturity date and let your bank make the decision for you. If your CD auto-renews, it will likely be at a lower rate. Acting now will put you in a better position to lock in stronger returns or keep cash accessible heading into 2026.
https://www.cbsnews.com/news/cd-account-maturing-december-2025-make-these-moves-experts-say/