4 things to do if your CD matures in July

Certificate of deposit accounts, or CDs, have historically been smart ways to protect and grow your savings. But much of the success of these accounts is timed to when they're opened and the rate at which they were opened. If you opened an account in 2020 or 2021, for example, when rates were abnormally low, the return you would have earned on an account would have been negligible. However, if you opened one in recent years as inflation surged and the federal funds rate rose with it, you would have earned a substantial amount of money, regardless of the CD term you chose.

That said, CDs don't last forever, and once the account has matured, you'll need to make some important decisions about your next steps. For those with a pending maturity date in July, then, it's critical to start this process now — and equally important to avoid some easy-to-make mistakes. Below, we gathered a list of four things to do if your CD matures in July. 

Start by exploring today's CD rates here to see how much more you could be earning.

4 things to do if your CD matures in July

While everyone's financial situation is different, it's helpful to have a few recommendations available ahead of your July CD maturity date. Here are four to consider now: 

Avoid letting it roll over

Many lenders will automatically roll over the funds in your current CD into a new one following a short grace period in between the time your first account matures and the time the new one begins. This could be a mistake, however, as there's no guarantee that the account your money rolls over into will have as high an interest rate as your original one. So don't let it automatically roll over without speaking to your lender about the next steps for your money.

Learn more about your current CD options here.

Ask about current rates

When you do speak to your lender, ask about current rates. It's possible — if not likely — that you can secure a higher rate now than when you first started with the account, particularly if you're approaching the end of a long-term CD opened in early 2022 or before. So, see what current rate your lender is offering you to keep your funds with them — and don't hesitate to shop around for online lenders who may be able to offer you more competitive rates and terms than the bank with local, physical branches. 

Move it to a long-term CD

The rate climate is constantly evolving and, right now, an interest rate cut for some point in 2024 looks likely. If that does come, it will affect what lenders are willing to offer savers on their CDs. And if inflation continues to cool, it could be the first of a series of rate cuts to come, all of which can affect what you can earn if you open a CD in the future. To prevent these potential diminishing returns, then, move the funds in your current CD into a long-term CD after they mature in July. This will ensure elevated returns for years to come, regardless of what happens in the wider rate climate.

Add more money to the account

Because today's high CD rates may be fleeting, not only should you consider moving your current funds into a long-term CD upon maturity, but you should also add more money to the account if you have some available. The more you deposit into a new account, the more interest you can earn so it makes sense to maximize these rates as much as possible. Just don't deposit more than you can comfortably part with for the full CD term otherwise you'll risk having to pay an early withdrawal penalty to reclaim your funds.

Get started with a new, long-term CD here now.

The bottom line

Don't wait for your CD to mature in July to consider your next moves. Instead, be proactive and talk to your lender to avoid letting the account automatically roll over and be sure to explore current rates for an opportunity to earn even more interest. You should also consider moving the money to a long-term CD to earn an elevated rate in the face of a potentially lower rate climate and look to add more funds to fully optimize the current CD account offers while they're still around. By making these moves now, you'll be better positioned for CD success in August and in the months and years ahead.