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When Your CD Matures: What to Do
Once a certificate of deposit matures, you can withdraw funds to put in another account, withdraw and open a different CD or let your CD renew.
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Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a focus on certificates of deposit and other banking-related topics. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Oakland, California.
Sara Clarke is a former Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She managed projects such as the U.S. News education rankings and the Best States rankings. Sara has appeared on SiriusXM Business Radio and iHeartMedia’s WHO Newsradio and has been quoted in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based near Washington, D.C.
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Key points about CD maturity:
You might only have seven to 10 days to withdraw penalty-free from a CD after it matures, depending on your bank’s policy.
If you don’t withdraw, your bank might automatically renew your CD for the same or similar term but at the bank’s current rate.
On the day that a CD term ends, or "matures," you typically have less than two weeks to decide what to do next or let your bank decide for you. This is your opportunity to move your money, either into a new CD or elsewhere.
What is a mature CD’s grace period?
A grace period is a short window of time, generally one to two weeks, when you can withdraw the money in your CD without paying an early withdrawal penalty. A grace period starts the day after a CD’s maturity date, which is the final day of a CD’s term.
If you don’t withdraw during this period, a bank will typically renew a CD automatically at the same or similar term to what the CD originally had. For example, a five-year CD matures and renews, or rolls over, into a new five-year CD. The new CD’s rate likely won’t be the same as the original.
» Want another CD? Compare the best CD rates this month
Your 3 choices during the grace period
1. Withdraw your CD funds and transfer them into a different account
This gives you the chance to either put that money into a more accessible vehicle, such as a checking or savings account, or invest it. If you used a CD to pursue short-term savings goals, such as buying a home or car, you’ll likely want more access now to those funds. If, on the other hand, you want a better return and are willing to accept more risk, one option is to move your money into a brokerage account. (See more details about short-term investments.)
2. Withdraw your funds and deposit them into a different CD
You might decide your CD funds don’t need more risk or accessibility. In this case, opening another CD may be the right choice. Compare several rates across banks, especially at online banks. You might also want a different type of CD; see nine CD types.
3. Let your bank renew your CD
This is the most convenient option but not necessarily the best. Letting your bank renew your CD might mean ending up with a lower (or higher) rate because your bank will likely give you the same rate it offers for new CDs with that term. Some banks offer a loyalty rate boost to a renewed CD, such as 5 basis points or 0.05% above the currently offered rate.
Compare several CD terms and rates at your bank and elsewhere before opting to let your CD roll over into a new one. If you choose to renew, consider taking advantage of the grace period by adding more funds to your CD. This might require calling the bank or visiting a branch, in the case of brick-and-mortar banks.
A savings account is a place where you can store money securely while earning interest.
A savings account is a place where you can store money securely while earning interest.
4.20%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
4.60%Annual Percentage Yield (APY) is accurate as of 111/19/2024. APY may change at any time before or after the account is opened. Available only online.
4.50%4.50% APY for $0 to <$250k; 4.80% APY for $250k+ balance
Min. balance for APY
$0
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
4.75%*Current promotional rate; annual percentage yield (variable) is 4.25% as of 11/8/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks (www.betterment.com/cash-portfolio) conducted through clients’ brokerage accounts at Betterment Securities.
0.10%Advertised Annual Percentage Yield (APY) is variable and accurate as of 07/01/2024. Rates are subject to change at any time before or after account opening.
Unlike other bank accounts, CDs penalize you for withdrawing at any time except during the grace period. The early withdrawal penalty tends to be several months’ worth of interest or even a year’s worth.
Banks often send a notification a few weeks before a CD’s maturity date about an impending renewal. If you lose or forget about this reminder, you can miss the grace period. If you don’t want to pay a penalty, you’ll have to wait until the renewed CD’s term ends before getting your money back.
The one exception is a no-penalty CD. These don’t have the best rates, but they can give you the peace of mind that you can withdraw at any point cost-free after a CD’s first few days. (See our list of the best no-penalty CD rates.)
Frequently asked questions
Do CDs automatically renew?
Typically, yes. Banks tend to automatically renew CDs that you don’t cash out from during a grace period. The renewed term is the same or similar to the previous term, but the rate is based on the current rate that that bank offers for that CD term. You can opt out of a CD during the grace period.
Can I inform the bank of my plans to not renew before the maturity date?
This depends on the bank. One place to check is your bank’s website or app for the ability to confirm your plan to withdraw or renew.
What happens if I forget about a CD?
In the short term, a bank generally renews CDs that expire and don’t have their funds withdrawn. At some point, though, funds from the CD might end up as unclaimed property at a state government agency. Learn more about how to be reunited with your long-lost money.
Should I break my CD?
Generally it’s a good idea to do the math first to see if you can earn enough interest with a new CD or other investment to make this worthwhile. You’d pay an early withdrawal penalty to break into your current CD, so be sure you’d earn at least that amount in interest, though ideally more. Learn more in our explainer about when to break a CD early.
Does a CD continue to earn interest after maturity?
A CD can continue earning interest after maturity (and before renewal), but it depends on the bank’s policy. Some banks may pay interest up to the last full day before cashing out a CD, while others may not pay interest earned during a grace period if a CD is cashed out. If you renew the CD, a bank may pay interest during the grace period. Waiting until the last possible day in a grace period to withdraw in order to earn a tiny bit more interest can be risky, especially if you need the money. Early withdrawal penalties apply to renewed CDs, and tend to be at least a few months’ worth of interest.
Do CDs automatically renew?
Typically, yes. Banks tend to automatically renew CDs that you don’t cash out from during a grace period. The renewed term is the same or similar to the previous term, but the rate is based on the current rate that that bank offers for that CD term. You can opt out of a CD during the grace period.
Can I inform the bank of my plans to not renew before the maturity date?
This depends on the bank. One place to check is your bank’s website or app for the ability to confirm your plan to withdraw or renew.
What happens if I forget about a CD?
In the short term, a bank generally renews CDs that expire and don’t have their funds withdrawn. At some point, though, funds from the CD might end up as unclaimed property at a state government agency. Learn more about
Generally it’s a good idea to do the math first to see if you can earn enough interest with a new CD or other investment to make this worthwhile. You’d pay an early withdrawal penalty to break into your current CD, so be sure you’d earn at least that amount in interest, though ideally more. Learn more in our explainer about
Does a CD continue to earn interest after maturity?
A CD can continue earning interest after maturity (and before renewal), but it depends on the bank’s policy. Some banks may pay interest up to the last full day before cashing out a CD, while others may not pay interest earned during a grace period if a CD is cashed out. If you renew the CD, a bank may pay interest during the grace period. Waiting until the last possible day in a grace period to withdraw in order to earn a tiny bit more interest can be risky, especially if you need the money.
CDs are the only bank account where knowing one detail — the maturity date — is vital for planning the future of your money in that account. Mark the day and the grace period on your calendar and set up a reminder one month before so you’re ready.
See CD rates by term and type
Compare the best rates for various CD terms and types:
