What happens when a CD matures?
When your CD matures, it’s decision time — understanding your options can help you avoid penalties, earn more interest, and align your savings with your financial goals.
Key takeaways
When a CD reaches maturity, you can withdraw your funds without early withdrawal fees — maturity is essentially your penalty-free window, but you often have a limited grace period to act.
From cashing out or renewing your CD to transferring funds to a high-yield savings account or starting a CD ladder, your next step should match your goals and the interest rate environment.
Ignoring maturity notices could potentially lead to automatic reinvestment at less favorable terms or missed opportunities to maximize your earnings.
What does it mean when a CD matures?
A CD’s (certificate of deposit) maturity occurs at the end of the agreed deposit period of your CD’s term. Your CD will typically earn interest up until this date and also allow for penalty-free withdrawals, since your fixed term will be up.
CD terms can last anywhere from a few months to five or more years, often benefitting from higher interest the longer the term. If you make an early withdrawal from a CD, you will face a penalty fee set by your bank (unless you have a no-penalty CD). However, once your CD has reached maturity, you will no longer be penalized for accessing your funds, as long as you act in a timely manner.
What to do when a CD matures
Taking note of your maturity date is important, as you may need to act promptly to determine what you want to do with your funds next. Typically, your bank or financial institution will have an automatic renewal policy if you do not take action once your CD matures, but you generally have a few options open to choose what you want to do next. However, you typically only have a short grace period to cancel if your CD gets automatically renewed.
CD grace period explained
Most banks offer a grace period to let you decide how to move forward (e.g., seven to 10 days), but actual timelines may depend on your bank and CD term — for example, Raisin’s partner banks and credit unions typically have a grace period of seven days. Therefore, it is important to stay informed so you are aware of how long your grace period is.
During this window, you have a few options on what to do with your CD funds, from withdrawing your cash to renewing your term or making other changes penalty-free. However, it is important to take advantage of the grace period, because once it has ended and if your bank automatically renews your CD term, you will face early withdrawal penalties.
Options for what to do when a CD matures
Let’s explore some of your options when your CD matures.
1. Cashing out your CD at maturity
If you need access to your funds, you can withdraw your principal plus any interest you earned. Withdrawing your cash allows you to use it right away or reinvest it elsewhere. You might want to consider alternative savings or investment options to continue growing your money.
2. Reinvest in another CD
You could also reinvest in a new CD or renew your existing CD for another term. While renewing your CD is a simpler option, some people choose to open a new CD to explore more competitive interest rates. Depending on the current rates, you may be able to take advantage of higher rates or decide if you want a shorter or longer term.
Bank
Product
APY
Maturity
mph.bank, a division of Liberty Savings Bank, F.S.B., Member FDIC
Member FDIC
Callable CD
4.40%
60 months
$2,200.00
Raisin is not an FDIC-insured bank or NCUA-insured credit union and does not hold any customer funds. FDIC deposit insurance covers the failure of an insured bank and NCUA deposit insurance coverage covers the failure of an insured credit union.
3. Start a CD ladder for better liquidity
Another option to consider would be taking the money from your CD and starting a CD ladder, which would break your funds into multiple CDs at different maturity rates. This can help you have more liquidity with staggering maturity dates.
4. Transfer to a high-yield savings account for flexibility
If you want to keep growing your funds but want more flexibility and easier access to your money, you could also consider transferring some or all of your money into a high-yield savings account. High-yield savings accounts are similar to traditional savings accounts but tend to offer higher interest rates. While some accounts may have withdrawal limits, you can still access your funds within that limit without having to pay a penalty.
5. Use funds for other financial goals (e.g., paying debt, investing).
If you have other financial matters to take care of, such as paying off debt or simply need the cash for a specific goal you were saving towards (e.g., a down payment on a car), you can use that money to take care of this. If you still have some extra cash left over, you could still consider reinvesting it into a new CD or saving it towards other goals.
What not to do when your CD matures
Figuring out your next steps after your CD matures is important, as you may face certain consequences if you miss your maturity date. Here are some things to avoid as your CD approaches maturity.
Ignoring maturity notices: Ignoring your maturity notices can put you at risk of automatic reinvestment if you miss your maturity date and grace period. This can cause you to miss out on potentially higher interest rates, and may lead to early withdrawal fees if you need access to your money.
Leaving funds idle in low-interest accounts: If you withdraw your funds and leave them idle in low-interest accounts, you could miss out on potential earnings from higher interest rates. You might want to consider a high-yield savings account, a new CD, or another investment option to help your money continue to grow.
Locking into long terms without considering interest rate trends: Interest rates may have changed since the start of your CD term, so you may want to look into current rates. If rates have dropped, you might want to reconsider locking in a CD for a longer term, in the event that rates will go back up.
If you have missed your CD maturity date and grace period and don’t know what to do next, turn to our article on CD automatic renewals and what happens if you miss your maturity date to explore potential options.
How to decide the best next step
The best option when deciding what to do when your CD matures will be the one that most closely aligns with your current situation and financial goals. When considering your options, you may want to align your choice with your short- and long-term goals and needs. If you need access to cash at the moment, then you might want to cash out your CD at maturity or keep your funds in a more flexible account. You could also consider the current interest rate environment to determine if a long- or short-term CD investment makes more sense. When choosing what to do next, you might also want to think about balancing between safety and opportunity cost.
Bottom line: Take control of your CD maturity
Reaching your CD’s maturity date isn’t just the end of a term — it’s a chance to make a smart financial move. Whether you choose to reinvest, shift your funds into a more flexible account, or use the cash for other goals, the key is to take action during your grace period. By aligning your decision with your broader financial strategy and the current rate environment, you can avoid costly mistakes and ensure your money keeps working for you.
If you’re ready to get started with a new CD, Raisin is here to help. Compare CD rates and other high-yield savings products with Raisin to make the most of your matured funds. Explore account types, compare interest rates, and sign up today to start maximizing your savings potential!
FAQs on what happens when a CD matures
Can I lose money if I don’t act when my CD matures?
You typically won’t lose your principal, but if your CD automatically renews at a lower interest rate or you miss a higher-yield opportunity, you could lose out on potential earnings. Plus, if you later withdraw after the grace period, you might face early withdrawal penalties.
Do CDs automatically renew at maturity?
Many banks automatically renew CDs into a new term if you don’t adjust your maturity plan or take action during the grace period. The renewal rate may or may not be competitive, so it’s important to review your options before the grace period ends.
Is it better to cash out a CD or roll it over?
It depends on your financial goals and the current interest rate environment. If you need liquidity or find better rates elsewhere, you may want to weigh the pros and cons to decide if cashing out would be a better option for you. If rates are favorable and your funds aren’t needed soon, rolling over or reinvesting can help you continue earning.
Related Content
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
© 2026 Raisin SE. All rights reserved.
The Raisin name and logo are trademarks of Raisin SE. All other trademarks, logos, marks, and brand names are the property of their respective owners.
*APY means Annual Percentage Yield. APY is accurate as of July 15, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.