What Should You Do When Your CD Matures?

A certificate of deposit (CD) can be a smart, low-risk way to grow your savings—like putting your money in a financial time capsule. You stash it away for a set period, it earns a fixed interest rate, and when the term is up, your funds (plus interest) are ready for their next move.

Unlike a standard savings account, CDs require you to keep your hands off the money until it matures—otherwise, you may pay early withdrawal penalties. The trade-off? Typically higher interest rates, especially if you commit to longer terms.

Now that your CD is approaching (or has reached) maturity, the ball's in your court. Do you cash out? Roll it over? Reinvest elsewhere? Let's break down the smart moves to make before and after your CD matures—so you're not just saving money, but actually putting it to work.

READ MORE: What Is a Certificate of Deposit (CD) and How Does It Work?

What Is a CD Maturity Date?

A CD's maturity date is the day your certificate of deposit officially reaches the end of its term. This is when your agreement with the financial institution ends, and your principal plus any earned interest is available for withdrawal or reinvestment.

CD terms vary widely—common options include three months, six months, 12 months or several years, typically up to five years. However, some financial institutions offer shorter or longer terms, including no-penalty or bump-up CDs with more flexible rules.

Why does the maturity date matter? Because if you miss it, your bank may automatically roll your CD into a new one—often with the same term but at the current market interest rate, which could be lower (or higher) than your original rate.

While some savers are happy to let it roll over, others may need access to their funds. And if you miss the grace period, you could get hit with an early withdrawal penalty just to get your money out.

Bottom line: Mark your calendar. Knowing when your CD matures gives you the power to decide what's next for your cash—on your terms.

Maturity date grace periods

Most financial institutions don't require you to take action on the exact day your CD matures. Instead, they typically offer a grace period, usually lasting seven to 10 days, during which you can decide what to do with your funds—withdraw, renew or move the money elsewhere—without incurring a penalty. Synchrony Bank CDs feature a 10-day grace period.

While you can wait until the grace period to act, it's often a good idea to notify your financial institution in advance if you know you plan to close or move the account. This helps prevent the CD from automatically rolling into a new term—especially if you don't want to get locked in again.

If you choose to withdraw your balance and close the CD, you'll have several options for putting those funds to work—whether it's reinvesting in another CD, moving the money to a high yield savings account or using it for other financial goals.

Options To Consider When Your CD Matures

As your CD's maturity date approaches, it's the ideal time to reassess your financial goals, compare current interest rates and consider your savings options. What you do next depends on whether you need liquidity, want continued growth or prefer to explore new strategies. Here are several options to consider:

1. Auto-renew or roll over your existing CD

If you don't give specific instructions, your financial institution will likely automatically roll your CD into a new one with the same term, but at the current interest rate—which could be higher or lower than before. If you're happy with the rate and still don't need access to the funds, this can be a hands-off way to keep saving. Just make sure you're OK with the type of CD and the new term length.

2. Open a new CD with different terms

Rather than letting your CD auto-renew, you can withdraw your funds at maturity and choose a new CD that better fits your current goals—whether that's a shorter or longer term, a higher interest rate, or more flexible features like a no-penalty or bump-up CD.

For instance, if your five-year CD just matured and you want more flexibility, you might open a one-year CD or use the funds to build a CD ladder—staggering multiple CDs with different maturity dates to balance returns and liquidity.

3. Move funds to a different savings account

If you want to keep earning interest without locking up your money, consider transferring your CD funds into a high yield savings account or a money market account. Both options typically offer above-average interest rates compared to traditional savings accounts, along with easy access to your money.

This makes them ideal if you're not ready to reinvest long term and want to stay liquid while weighing your next move. Either way, you'll keep your cash growing without penalties—and with the freedom to pivot when a better opportunity comes along.

4. Consider other investments

If you don't have a short-term need for the funds and are comfortable with some risk, you could move the money to a brokerage account and invest in ETFs, mutual funds or individual stocks. This strategy has the potential for higher returns than CDs may offer, but it comes with market risk—so make sure it aligns with your time horizon and risk tolerance.

READ MORE: Mutual Funds vs. ETFs: Key Differences Explained

5. Cash out and use the funds as planned

If your CD was part of a specific savings goal—like a home down payment, vacation, car purchase or wedding—this is your green light. Go ahead and transfer the money to your checking account and use it as budgeted. Just be careful not to let a windfall tempt you into impulsive spending, especially if you have other financial priorities.

6. Consider diversifying your savings and investments

You're not limited to a single CD or strategy. Many savers use a CD ladder, which involves spreading funds across multiple CDs with staggered maturity dates—like the rungs of a ladder. This way, some of your money becomes available at regular intervals, giving you better liquidity without sacrificing the higher interest rates that longer-term CDs can offer.

You can also diversify beyond CDs by spreading out your savings across high yield savings accounts, money market account and investment accounts. Diversification can help you reach long-term financial goals while keeping a portion of your funds in low-risk bank accounts and the remainder in riskier—but typically higher-return—investment accounts.

READ MORE: 10 Lessons You Should Learn Before Investing

Synchrony Bank CD Options at Maturity

If you have a CD with Synchrony Bank, you'll have a few options when it reaches maturity:

• Automatically renew your CD: If you take no action, your CD will renew for the same term at the current interest rate. For example, a 12-month CD will roll into a new 12-month CD automatically.
• Withdraw or transfer during the 10-day grace period: Log in during the grace period to move your funds. You can transfer the money into another Synchrony savings account, open a new CD with different terms or withdraw to an external account.

Just act before or during the grace period if you don't want the auto-renewal to kick in.

Important Steps To Take Before Your CD Matures

Don't wait until the last minute! Before your CD matures, it's a good idea to consider your options and decide what to do when that date rolls around. In many cases, you can notify the bank before the maturity date if you don't want the CD to roll over. Otherwise, automatic renewal is often the default. Here are two key steps to take in advance:

Monitor interest rates

CD rates tend to rise and fall with market trends and decisions by the Federal Reserve. Rates can change quickly, so if you're considering renewing with the same bank, keep an eye on its current offerings. Knowing what to expect can help you decide whether to stay put or switch things up.

Shop around for the most competitive rates

If rates are higher at another financial institution, you may get a better return by moving your money. Online banks, like Synchrony Bank, often offer more competitive interest rates than those of traditional banks. They may also provide more flexible options, such as a bump-up CD (which allows you to increase your rate during the term if market rates rise).

Find the latest CD rates from Synchrony Bank here.

What Is a CD Early Withdrawal Penalty?

If you withdraw money from a CD before it matures, you will usually pay a penalty—typically a set amount of interest, and sometimes even part of your principal.

The exact penalty depends on your bank and the length of your CD term. Most banks reduce your earnings by a specific number of days' worth of interest. If you haven't earned that much yet, they may deduct it from your original deposit.

At Synchrony Bank, for example, the early withdrawal penalties are:

That said, not all CDs come with a penalty. Some banks, like Synchrony Bank, offer no-penalty CDs, which let you withdraw your funds after a short holding period without losing any interest. Others may offer bump-up CDs, allowing you to raise your rate once during the term if rates increase, giving you more flexibility without having to break the CD.

Bottom line: Standard CDs lock in your rate—and your funds. But if flexibility matters, explore no-penalty or bump-up options before committing.

Make a Move When Your CD Matures

A CD can be a reliable way to grow your savings. But when it matures, you need a plan. Whether your term was 90 days or five years, what you do next will affect how your money keeps working for you. Now's the time to review your options:

• Want to keep earning interest? You might roll it over or open a new CD with better terms.
• Need more flexibility? A high yield savings or money market account could do the trick.
• Looking for growth? Consider investing or building a CD ladder.

The key is knowing your goals—and making your money move accordingly.

READ MORE: How to Choose Your CD Account in an Uncertain Economy