Cashing Out a CD at Maturity? Don’t Make These 4 Common Mistakes

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When your certificate of deposit (CD) reaches maturity, what you choose to do next will seriously affect your finances. CDs are low-risk, interest-earning accounts that come with set terms, but your CD maturing isn’t the end of the line — it’s an opportunity. Continue to earn a return on your investment by avoiding these four common mistakes.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 1. Ignoring the grace periodYour CD almost certainly comes with a grace period of seven to 10 days after it matures. This grace period gives you a chance to decide what to do with your money. This can be easy to miss or forget.Before doing anything else, review the terms of your CD and take note of exactly how long your grace period is. Missing this window could lock your cash into a new CD that might have an interest rate well below competitors.2. Rolling over without reviewing your optionsIf you don’t otherwise specify, many banks automatically roll your funds from the expired CD into a new CD once your grace period ends.While this may seem convenient, especially if you want to keep your cash in a CD, when you do an automatic rollover, your bank doesn’t give you any choice of which CD your money will be put into. That means the interest rate you get can be well below today’s best CD annual percentage yields (APYs) of 4.00% and higher.Looking for a new CD to roll your cash into? Check out our list of the best CD rates to continue earning a top APY on your money.3. Letting your money sit in a low-interest savings accountOne of the benefits of a CD is earning a high interest rate on your money, while preventing you from spending that cash before reaching your savings goal. Transferring your funds to a standard savings account after your CD matures might seem easy, but it can be a big mistake.The average 6-month CD interest rate is 1.64%, according to the FDIC. But the average savings account interest rate is only 0.41%. That makes the average CD rate three times higher than the average savings account. Instead, check out the best CD interest rates or the best high-yield savings accounts, which currently include accounts earning APYs of 4.00% or higher.4. Not using funds to pay down debtWhile earning a return of 4% or more on your cash in a CD is a sweet deal, consistently paying credit card debt with a 25% annual percentage rate (APR) more than wipes out anything you earn. Having a savings goal is important, but it becomes a moot point when you’re dealing with high-interest, revolving debt. Paying down credit card debt will increase your credit score, give you more financial freedom, and give you the best chance to land the top credit cards.Once your CD matures, it’s not just time to collect your earnings, but it’s an opportunity to reassess your financial priorities. Make sure you’re reviewing your savings goals, paying down as much high-interest debt as you can, and exploring the best high-yield savings accounts.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

When your certificate of deposit (CD) reaches maturity, what you choose to do next will seriously affect your finances. CDs are low-risk, interest-earning accounts that come with set terms, but your CD maturing isn’t the end of the line — it’s an opportunity. Continue to earn a return on your investment by avoiding these four common mistakes.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

1. Ignoring the grace period

Your CD almost certainly comes with a grace period of seven to 10 days after it matures. This grace period gives you a chance to decide what to do with your money. This can be easy to miss or forget.

Before doing anything else, review the terms of your CD and take note of exactly how long your grace period is. Missing this window could lock your cash into a new CD that might have an interest rate well below competitors.

2. Rolling over without reviewing your options

If you don’t otherwise specify, many banks automatically roll your funds from the expired CD into a new CD once your grace period ends.

While this may seem convenient, especially if you want to keep your cash in a CD, when you do an automatic rollover, your bank doesn’t give you any choice of which CD your money will be put into. That means the interest rate you get can be well below today’s best CD annual percentage yields (APYs) of 4.00% and higher.

Looking for a new CD to roll your cash into? Check out our list of the best CD rates to continue earning a top APY on your money.

3. Letting your money sit in a low-interest savings account

One of the benefits of a CD is earning a high interest rate on your money, while preventing you from spending that cash before reaching your savings goal. Transferring your funds to a standard savings account after your CD matures might seem easy, but it can be a big mistake.

The average 6-month CD interest rate is 1.64%, according to the FDIC. But the average savings account interest rate is only 0.41%. That makes the average CD rate three times higher than the average savings account. Instead, check out the best CD interest rates or the best high-yield savings accounts, which currently include accounts earning APYs of 4.00% or higher.

4. Not using funds to pay down debt

While earning a return of 4% or more on your cash in a CD is a sweet deal, consistently paying credit card debt with a 25% annual percentage rate (APR) more than wipes out anything you earn. Having a savings goal is important, but it becomes a moot point when you’re dealing with high-interest, revolving debt. Paying down credit card debt will increase your credit score, give you more financial freedom, and give you the best chance to land the top credit cards.

Once your CD matures, it’s not just time to collect your earnings, but it’s an opportunity to reassess your financial priorities. Make sure you’re reviewing your savings goals, paying down as much high-interest debt as you can, and exploring the best high-yield savings accounts.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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