When a Certificate of Deposit (CD) matures, you have a few options to consider: What to do with a CD when it matures
Renewal:
You can choose to renew the CD for another term. This typically involves rolling the principal and interest into a new CD with the current interest rate. Make sure to check the new terms and interest rates before deciding to renew.
Withdrawal:
If you need the funds or have other investment plans, you can choose to withdraw the money from the matured CD. Be aware that there might be penalties for early withdrawal, so check the terms of your CD agreement.
Rollover:
You can also choose to roll over the funds into a different type of investment, such as another CD with different terms or a different type of account. This gives you the flexibility to explore other investment opportunities.
Reinvest:
Consider reinvesting the funds in a different financial instrument or investment vehicle that aligns with your financial goals. This could include stocks, bonds, mutual funds, or other investment options.
Diversify:
If you have a significant amount of money from the matured CD, you might want to diversify your investments to spread risk. Consult with a financial advisor to determine the best strategy based on your financial situation and goals.
Before making a decision, review the terms of the matured CD, understand any penalties or fees associated with different options, and consider your current financial needs and objectives. If you're unsure about the best course of action, it's advisable to consult with a financial advisor for personalized advice based on your specific circumstances.
