What not to do if your CD account matures this July

Savers with certificates of deposit (CDs) maturing in July face a critical decision point. With interest rates fluctuating, proactively managing these accounts is crucial to ensure funds continue to grow securely and profitably.

Automatic rollovers can be a pitfall. If savers do not act within the typical two-week grace period, their CD may renew into a new version, potentially with an interest rate that is less competitive than current market offers. Experts advise informing the bank of plans to access funds and actively shopping for alternative accounts and rates.

Placing maturing CD funds into a traditional savings account is also discouraged. Current data shows that a 6-month CD at a top rate of 4.10% is vastly more profitable than the average 0.38% offered by traditional savings accounts. While CDs involve a loss of access to funds, alternatives like high-yield savings or money market accounts offer better returns and more flexibility than traditional savings options.