As the Fed raised rates in 2022–2023, certificates of deposit (CDs) became an attractive place to park savings. Since then the Fed has cut rates twice in fall 2025, and CD yields have fallen. If rate cuts continue, banks and credit unions may lower CD offers further. With a CD maturing in 2026, now is a good time to consider what to do next so you’re ready when the term ends.
Why act now
– The rate environment when your CD matures could be very different from when you opened it.
– Banks typically auto-renew CDs at current rates if you don’t move the money, and you’ll have only a short window after maturity to change that without penalty.
– Planning ahead lets you compare options and be ready to move funds when the CD matures.
Options experts recommend
1) Open a short-term CD
– Short-term CDs (under 12 months) are currently offering unusually high rates compared with many longer-term CDs — an “inverted curve.”
– Many institutions are running promotional short-term offers that can exceed standard rates by large margins, creating an opportunity to lock in attractive yields for a short period.
– This approach can be useful if you expect rates to fall and want to earn a better return while keeping flexibility in the near term.
2) Open a long-term CD
– Long-term CDs (roughly 18 months to five years) can lock in a fixed rate for the term, which may be appealing if you value certainty.
– Some banks still offer competitive multi-year rates (for example, near 4% on a 3-year CD in recent examples), which protect your return if market rates decline further.
– Only put in money you can leave untouched for the full term, since early withdrawals usually incur penalties.
3) Use a high-yield savings account
– High-yield savings accounts provide liquidity and flexibility with competitive APYs that can be close to CD rates.
– There’s no fixed term or early-withdrawal penalty, so you can access funds at any time — helpful if you aren’t sure when you’ll need the money.
– These rates are variable, so if overall interest rates fall, the APY on a high-yield account will likely fall too.
What to avoid
– Traditional savings accounts at large banks typically pay very little interest (the national average is low), so they usually aren’t a good place for funds that could earn more elsewhere.
Bottom line
Short- and long-term CDs and high-yield savings accounts are all viable choices to research before your CD matures. Decide your priorities — liquidity versus locking a rate — and compare current offers now so you can act quickly when your CD reaches maturity and avoid an unwanted automatic rollover.
