CDs typically pay higher interest rates than what is available from savings accounts. Interest rates will vary based on the timeline of the CD. You usually get a higher interest rate in exchange for choosing a longer-term CD. The maturity date is often part of the CD’s name.

What happens when a CD account reaches maturity?

Once a CD matures, you have three options: withdraw your money and put it in another account, withdraw and open a different CD, or let your CD renew. Key points about matured CDs: You might only have seven to 10 days to withdraw penalty-free from a CD after it matures, depending on your bank’s policy.

How long can you leave money in a CD?

When you put money into a CD, you’re agreeing to leave your money on deposit at the bank for a set period of time, typically from three months to five years.

How long can you keep a CD account?

CD terms typically range from three months to five years. The trick is to find a CD with the right maturity date for you. If your term’s too short, you might miss out on a higher rate available for a longer term. If your term’s too long, you may need the money prematurely and pay an early withdrawal penalty to get it.

How long does it take for a CD to mature?

You usually get a higher interest rate in exchange for choosing a longer-term CD. The maturity date is often part of the CD’s name. For example, if you buy a “six-month CD,” the CD will mature six months after you deposit your money into that account.

What to do when your CD matures NerdWallet?

CDs are the only bank account where knowing one day, 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. About the author: Spencer Tierney is an expert on certificates of deposit at NerdWallet.

What to expect when a CD matures in Colorado?

Justin Pritchard, CFP, is a fee-only advisor in Colorado. He covers banking and loans and has nearly two decades of experience writing about personal finance. A CD’s maturity date is the date when you can take your money out of the CD without paying early withdrawal penalties.

Do you have to renew your CD when it matures?

So while allowing your bank to renew the CD is convenient, he says the cost of convenience is being locked into another CD maturity date and a likely lower or less competitive yield. There’s no general policy across financial institutions for what to do when a CD matures, however.