If your certificate of deposit (CD) is set to mature in June, don’t wait until the day it matures to decide what to do. A little planning now can protect your returns and prevent your funds from being rolled into an unfavorable CD. Here are three practical steps to take before your maturity date.
1) Stop automatic rollovers
Most banks automatically roll maturing CDs into a new CD at the prevailing rate once the short grace period ends, often about two weeks. That new rate could be much lower or have less favorable terms than the CD you currently hold. Contact your bank now to tell them not to auto-renew. Be prepared to withdraw your funds on the maturity date and place them somewhere temporary if needed, rather than letting them get locked into a new CD you don’t want.
2) Shop alternatives before you have to move the money
Interest rates for CDs and savings accounts change frequently. Start comparing CD rates, terms, and penalties now so you’ll have options ready when the funds are available. Online banks frequently offer higher CD rates than brick-and-mortar institutions, and you may find competitive short-term or laddering options that match your timeline and risk tolerance. If you plan to reopen a CD, know the minimum deposit, term length, early withdrawal penalties, and whether the rate is fixed for the full term.
Consider alternatives beyond traditional CDs too: high-yield short-term CDs, short-term Treasury bills, or a CD ladder can provide a balance between liquidity and yield. If you need immediate access to the cash for a short period, look for high-yield savings or money market accounts as a temporary parking spot while you decide.
3) Avoid stashing large sums in a traditional savings account long term
Average rates on standard savings accounts remain very low compared with CD yields. Unless the savings account is only a temporary holding place during your search for a better option, you will likely earn far less interest there. Use savings accounts only as a short-term bridge; move larger balances into higher-yielding CDs or other conservative vehicles that better protect purchasing power.
Extra tips
– Know the grace period and set a calendar reminder a few days before it ends so you don’t forget to act.
– If you might need the money soon, favor short-term CDs or short-duration instruments to avoid steep early withdrawal penalties.
– If you open an account at a new institution, confirm transfer timing and any funding requirements so you aren’t forced into a last-minute acceptance of a poor rate.
– If you hold a promotional or special-rate CD, check whether the rate applies only to new deposits or existing customers; that can affect whether switching makes sense.
Bottom line
A CD maturing this June is an opportunity, not a deadline to panic. Prevent an unwanted automatic rollover, shop available CD and short-term options now, and avoid leaving significant funds in a low-yield savings account. Acting early gives you time to compare rates and choose the best place to keep your money earning a reasonable return while preserving access if you need it.