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.
Spencer Tierney
By Spencer Tierney 
Updated
Edited by Sara Clarke

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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.

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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.

Remember your CD’s maturity date

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.)

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Frequently asked questions

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.

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.

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.

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.

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.

Grace periods at some banks

A CD’s grace period can vary by bank and credit union; here’s a look at several:

Financial institution (click to read our review)

Grace period for CDs (starting after the maturity date)

9 days.

7 days.

10 days.

10 days.

9 days.

10 days.

10 days.

7 days.

Be prepared for your CD’s maturity

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.

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