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When a certificate of deposit (CD) matures, its agreed term ends. Your principal and earned interest may become available to withdraw, or the account may renew automatically after a grace period, depending on your agreement and instructions. Check the maturity notice and account terms promptly: renewal rates, deadlines, interest treatment, and grace periods vary by institution and product.
What happens on a CD’s maturity date?
Maturity is the end of the term you originally agreed to. The account’s next step depends on its renewal setting and your instructions. Some CDs become available for withdrawal; others renew automatically if you do not act. The Consumer Financial Protection Bureau (CFPB) says the bank or credit union must send written notice before maturity stating when the CD ends and whether it renews automatically. See the CFPB’s CD rollover and renewal guidance.
Automatic renewal does not necessarily mean the CD keeps its old rate or term. The institution may offer a new rate for the next term, and it can differ from the rate on the maturing CD. Review the notice and renewal offer rather than assuming the account will continue on identical terms.
What is the grace period?
A grace period is a window after maturity in which a customer may be able to withdraw funds from an automatically renewing time deposit without an early-withdrawal penalty, or change renewal instructions. The exact length, eligible actions, and required procedure depend on the account and institution. The FDIC’s Truth in Savings examination manual describes the function of a grace period but does not set one universal number of days.
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For example, TD Bank describes a 10-calendar-day grace period for TD Choice CDs. That is a rule for that named product, not a standard that applies to every CD. Check your own maturity notice or agreement for the applicable dates and instructions.
Does a CD keep earning interest after maturity?
Do not assume the original rate continues after maturity. Whether interest is paid during or after a grace period depends on the account agreement and bank policy, according to the Office of the Comptroller of the Currency (OCC). Ask the institution to confirm in writing how your funds are treated during the grace period and what happens if no instruction is received. The OCC explains this in its guidance on interest after a CD matures.
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What to do before the deadline
- Find the maturity date and notice. Read the written notice to confirm whether automatic renewal applies and when the current term ends.
- Check the agreement. Identify the grace-period dates, how to change renewal instructions, where proceeds will go, whether interest accrues after maturity, and what happens if you take no action.
- Compare the renewal offer. Look at the new rate and term against other current options. Consider when you may need the money, any early-withdrawal penalty during a new term, and whether the product is callable or market-linked.
- Send instructions through the stated channel. Use the official account portal or contact information in the notice. Give instructions before the deadline, keep confirmation, and verify where the proceeds will be sent.
- If it has already renewed, contact the institution promptly. Ask whether the grace period is still open and what the agreement allows. The OCC says an automatically renewing CD may roll into a new CD when the grace period expires; the original agreement governs the terms.
U.S. Bank describes withdrawal, reinvestment, and renewal as choices under its own procedures; its guidance is an example, not a substitute for your institution’s notice and agreement: What to do when your CD matures.
Choose among withdrawal, renewal, or reinvestment
| Option | When it may fit | What to check |
|---|---|---|
| Withdraw the proceeds | You need access to the money or prefer not to commit it to another term. | How and when proceeds will be delivered, and whether the withdrawal must be requested by a particular deadline. |
| Renew into another CD | You can leave the money invested for the new term and the offered terms suit your plans. | New rate and term, early-withdrawal penalty, renewal deadline, and any callable or market-linked features. |
| Reinvest elsewhere | Another eligible account or investment better fits your needs, rate comparison, or access requirements. | Transfer timing, destination account details, and any separate terms or risks of the alternative. |
The CFPB’s CD overview notes that withdrawing funds before a CD’s new term ends may trigger a penalty. Product features matter: the FDIC warns that some long-term high-yield CDs have call features and some market-linked CDs may not permit early redemption. Do not assume a market-linked or callable CD has the same access rules as a standard fixed-rate CD. See the FDIC’s CD shopping guidance.
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Check deposit insurance when deciding where the money goes
The CFPB states that bank CDs are insured by the FDIC and credit-union CDs by the National Credit Union Administration (NCUA), up to $250,000. The applicable coverage depends on the institution and ownership category, as well as other deposits you hold there. For FDIC-insured banks, coverage includes principal and accrued interest through the bank’s closing date, up to the applicable limit. Review the FDIC’s deposit insurance guidance and account for your total deposits at the same bank when checking coverage.
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