CD Maturing in September? Here's Where to Move Your Money
With many banks giving savers only about two weeks to decide after a CD matures, financial advisers say now is the time to compare high-yield savings and money market accounts.
Savers whose certificates of deposit are set to mature in September have a narrow window to decide what to do with their funds, and letting the money automatically roll over into a new account could mean locking in a lower rate, financial experts say.
Many banks give customers only about two weeks after a CD matures to decide whether to withdraw the funds or let them roll into a new CD. That short timeline means savers should start planning now rather than waiting until the maturity date arrives.
One option often assumed to be safe — moving the money into a traditional savings account — is not a strong choice right now. The average savings account rate was just 0.38% as of an FDIC update released last week, a level that fails to keep pace with inflation.
Instead, two alternatives offer significantly higher returns without the restrictions of a CD.
A high-yield savings account currently offers a top rate of 4.10%, according to the report, while still allowing savers normal access to their funds, unlike a CD. These accounts carry a variable rate that can rise or fall with market conditions, but with interest rates holding steady for now, that risk is considered manageable. Rates vary widely between banks, and online banks tend to offer more competitive terms than banks with physical branches, so shopping around before opening an account or transferring funds is advised.
A money market account is another option, typically offering rates slightly below the best high-yield savings accounts but with the added benefit of check-writing privileges, which neither savings accounts nor CDs provide. Money market rates are also variable, tied to broader market conditions.
Financial experts recommend savers use the weeks before their CD matures to compare rates and terms across both account types, using online marketplaces that list options in one place, rather than letting funds roll over by default into a new CD that could carry a lower rate than the one they are currently earning.
This article was produced with the assistance of artificial intelligence (AI), in accordance with our editorial policy.
