If your certificate of deposit (CD) comes due in 2026, it’s smart to plan now. The Federal Reserve raised rates in 2022–2023 but cut them twice in fall 2025, and many CD yields have moved lower. If rates keep falling, banks and credit unions may reduce CD offers further. Preparing ahead helps you avoid an unwanted automatic renewal and gives you time to compare alternatives.
Why act now
– The interest-rate environment when your CD matures could be very different from when you opened it.
– Most institutions automatically renew maturing CDs at the bank’s current rate if you don’t give instructions, and you typically have only a short grace period after maturity to change that without penalties.
– Planning in advance lets you research promotional offers, line up new accounts, and be ready to move funds immediately when the term ends.
Options experts recommend
1) Open a short-term CD
– Short-term CDs (under 12 months) are currently paying unusually strong rates versus many longer terms — an “inverted” yield relationship.
– Many banks and credit unions run promotional short-term CDs that can offer higher yields than standard offers, letting you lock a good rate for a short period.
– This is useful if you expect rates to fall and want a better return while keeping flexibility to re-evaluate in less than a year.
2) Open a long-term CD
– Long-term CDs (roughly 18 months to five years) lock in a fixed rate for the duration, which appeals if you prioritize certainty over liquidity.
– Some institutions still post competitive multi-year rates (for example, around the high 3% to 4% range in recent examples), which can protect your return if market rates decline further.
– Only invest money you can leave untouched for the full term; early withdrawals usually mean steep penalties.
3) Use a high-yield savings account
– High-yield savings accounts offer liquidity and competitive APYs that can be close to CD rates while allowing you to access funds at any time.
– There’s no fixed term or early withdrawal penalty, so this is a good choice if you need flexibility or aren’t sure when you’ll need the cash.
– These rates are variable: if overall interest rates fall, the APY on a savings account will likely fall too.
What to avoid
– Leaving the money in a traditional savings account at a large bank typically yields very little — the national average is low — so those accounts usually aren’t the best home for funds that could earn more elsewhere.
Bottom line
Short-term CDs, long-term CDs and high-yield savings accounts are all reasonable options. Decide your priority — locking a rate for certainty versus keeping liquidity and flexibility — then compare current offers now. Being ready when your CD matures lets you act quickly, avoid an unwanted automatic rollover, and capture the best available return for your needs.