Choices for When a Certificate of Deposit (CD) Matures

When you open a CD, it is clear exactly how much money you will earn in interest by the end of the CD term. It is just a matter of applying the interest rate and doing simple math as your rate won’t change during the CD term. Put your money into a high-rate certificate of deposit and reap the rewards of our special offer interest rates.

Steps to Take Before Maturity

1. Check Current CD Rates: Compare the best rates.
2. Evaluate Financial Goals: Consider if a CD still aligns with your savings strategy or if you’d prefer other investments.
3. Plan Your Action within the Grace Period: Typically 7-10 days, this is when you can make changes without penalty.

Once your CD matures, you have several choices. Here’s a breakdown of what you can do:

1. Withdraw the Funds

• Pros: Access to your original deposit plus interest earned, which can be helpful if you need liquidity or have a new goal.
• Cons: Your funds won’t continue earning a CD’s fixed interest, so you may need to consider other savings or investment options if you want growth.

2. Renew the CD Automatically

• Many banks offer automatic renewal, typically with a similar term but at the current interest rate. This is the easiest option if you’re satisfied with the rate and term.
• Pros: Your money remains in a secure, interest-bearing account.
• Cons: Renewal rates may differ from your previous rate, especially if rates have changed.

3. Reinvest in a Different CD or Investment Option

• You could choose a different term or type of CD, such as a high-yield CD, or even explore new investment options.
• Pros: Potentially better rates or terms, depending on market conditions.
• Cons: Requires research and may involve shifting your funds to another institution.

4. Consider a CD Ladder

• If you have multiple CDs, you can structure their maturity dates at different intervals to regularly access cash while continuing to earn interest.
• Pros: Provides liquidity, higher yield options, and flexibility.
• Cons: Requires a bit of planning and management.

As a locally-owned community bank, Core Bank customers always come first. Whatever your needs may be, there’s a savings account option for you. Each account type comes with benefits beyond competitive interest rates—each option features free debits and no monthly maintenance fee for those who maintain a minimum account balance. Let us know if you need specifics on any part of the process or help calculating returns!

Open your Core Bank CD account online today!