What happens when a CD matures?
Maturity is the point when the CD term ends and you can decide what happens next. The important part is knowing the bank's renewal process, the new rate, and the window for moving or withdrawing the money.
The CD may renew automatically
Many CDs are set up to renew into a new term unless you give instructions during the bank's permitted window. Check the account's actual maturity notice and terms.
The new rate may be different
A renewal generally uses the rate available for the new term rather than preserving the rate from the CD that just matured.
You may have a limited decision window
Banks commonly provide a period after maturity for withdrawals or changes without treating the move as an early withdrawal. The exact timing is account-specific.
You can compare the next use of the cash
Before renewing, compare the available CD term with high-yield savings and other maturities that better match when you may need the money.
A ladder can make maturity dates more useful
If you use multiple CDs with staggered terms, each maturity gives you a scheduled chance to spend, move, or reinvest part of the balance.
Do not let inertia make the decision
Automatic renewal is convenient, but review the rate, term, liquidity needs, and current alternatives before accepting another lockup period.