What To Do When a CD Matures: Your Grace Period Guide

When your certificate of deposit matures, you typically get a grace period of about 7 to 10 days to withdraw, renew or move your money penalty-free before your bank automatically rolls the balance into a new CD at its current rate.

Miss that window and your funds usually lock up again until the next maturity date, so it pays to know your options before your CD's term ends.

Key Takeaways

• You get a short window to act. Most banks offer a grace period of seven to 10 days after your CD's maturity date to withdraw, renew or transfer your funds without an early withdrawal penalty.

• Doing nothing usually triggers automatic renewal. If you don't respond during the grace period, most banks roll your balance into a new CD with the same term at whatever rate is current, which may be lower than what you were earning before.

• Federal law requires advance notice. Under Regulation DD, banks generally must notify you in writing at least 30 days before an automatically renewing CD with a term longer than one month matures, or at least 20 days before the end of the grace period if that period is at least five days.

• You have three main choices at maturity. You can withdraw your principal and interest, renew into a new CD, or move the money into a different account, like a high-yield savings account.

• The rate resets at renewal. A renewed CD earns whatever annual percentage yield the bank currently offers for that term, not the rate you originally locked in, so it's worth comparing before your grace period ends.

• Missing the grace period locks your money up again. If you don't act in time, you'll generally owe an early withdrawal penalty to access your funds before the next maturity date.

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What Does It Mean When a CD Matures?

A certificate of deposit reaches maturity on the last day of its fixed term, the point at which you can access your original deposit plus the interest it earned without triggering a penalty.

Up until that date, your money is locked in at the rate you agreed to when you opened the account. Once the CD matures, that agreement ends, and your bank generally gives you a short window to decide what happens next.

What Is a CD Grace Period?

A CD grace period is the span of time after your CD matures during which you can withdraw, renew or change the terms of your account without paying an early withdrawal penalty. Grace periods commonly run seven to 10 days, though the exact length depends on your bank and, in some cases, how long your original CD's term was.

Here's how 10 well-known banks currently structure their grace periods:

Grace periods run on consecutive calendar days, including weekends and holidays, so if you miss the deadline by even a day, your bank will typically treat any renewal as final. Wells Fargo and Synchrony Bank, for example, both send a maturity reminder notice about 30 days before your CD matures, on top of the grace period itself, giving you a heads-up window before the clock even starts.

What Happens if You Do Nothing When a CD Matures?

If you don't act during the grace period, your bank will most likely renew your CD automatically, rolling your principal and any earned interest into a new CD with the same or a similar term. The new interest rate will reflect whatever the bank is currently offering for that term, which could be higher or lower than what you previously earned.

At Wells Fargo specifically, a promotional "Special" CD rate applies only to the initial term; once it renews, it resets to the bank's standard rate for that term, not another promotional rate, unless you actively choose otherwise.

Federal rules require your bank to tell you this is coming. Under Regulation DD, which implements the Truth in Savings Act, a bank must generally send written notice before an automatically renewing CD with a term longer than one month matures. That notice must typically arrive at least 30 calendar days before the maturity date, or at least 20 days before the end of the grace period if the grace period runs at least five days.

For CDs with terms longer than one year, that notice must also include the new CD's terms, or tell you when the rate will be set if it isn't known yet.

Not every CD renews automatically. Some CDs, along with most brokered CDs purchased through a brokerage rather than directly from a bank, simply stop earning interest at maturity and sit until you decide what to do. Check your account disclosures to see which type you have.

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What Are Your Options When a CD Matures?

When your CD matures, you generally have three choices.

• Renew your CD. You can let your CD roll into a new term, either automatically or by actively choosing a new term length. This can make sense if your bank's current rate is still competitive and you don't need the money soon.

• Withdraw your funds. You can close the CD and take your principal plus earned interest, either as a transfer to a linked account or, at some banks, a mailed check. This is the right move if you have a specific expense the money was earmarked for, like a down payment or tuition bill.

• Move the money elsewhere. You can transfer the funds into a different account entirely, such as a money market account, a new CD at a different institution, or a high-yield savings account if you want easier access to your cash going forward.

How Do You Decide What To Do When Your CD Matures?

Your decision comes down to whether you need the money, how competitive your bank's current rate is, and what else is happening in your finances. Use this framework as a starting point:

Since a CD's rate is fixed only while it holds a CD, comparing APY across a few types of savings accounts before you decide can help you avoid settling for a renewal rate that isn't actually your best option.

If you're weighing whether to spread funds across multiple terms instead of one lump renewal, a CD ladder is worth considering too.

How To Renew, Withdraw or Transfer a Matured CD

Follow these steps once your maturity notice arrives:

1. Mark your maturity date and grace period. Note both dates as soon as you open the CD, and check your maturity notice again when it arrives to confirm the exact grace period window.

2. Compare your bank's current rate to other options. Look at your bank's new CD rate alongside competing CDs and high-yield savings accounts before deciding whether to renew.

3. Contact your bank during the grace period. Log in online, call, or visit a branch to withdraw, choose a new term, or request that your funds not renew automatically.

4. Confirm the outcome in writing. Ask for confirmation of your instructions, whether that's a new CD's terms or a transfer receipt, so you have a record if anything is processed incorrectly.

5. Set a reminder for the next maturity date. If you renew, add the new maturity date to your calendar so you aren't caught off guard again.

Common Mistakes To Avoid at CD Maturity

• Missing the grace period entirely. This is the single most common and costly mistake: once it closes, you're generally locked into a new term, and getting your money out early means paying a penalty.

• Rolling over without reviewing your options. If you don't actively specify otherwise, many banks default to renewing your CD automatically, often at a standard rate that's lower than what a shopped-around rate elsewhere would pay.

• Assuming a promotional rate carries over at renewal. Special or promotional CD rates, like Wells Fargo's Special Fixed Rate CDs, typically apply only to the initial term; renewal resets you to the bank's standard rate unless you actively choose a new promotion.

• Forgetting the notice period works in your favor. Since banks generally must notify you 20 to 30 days before maturity under Regulation DD, use that lead time to shop rates rather than waiting until the grace period is already underway.

What if You Miss the Grace Period?

If you miss your CD's grace period, your funds are typically locked into the new term, and withdrawing before the next maturity date will usually trigger an early withdrawal penalty. Depending on your bank, that penalty is often calculated as a set number of months' interest, and it can eat into both the interest you've earned and, in some cases, part of your original deposit.

If you leave a matured CD untouched for a long period without contacting your bank or making any transactions, the funds can eventually be turned over to the state as unclaimed property. If you think you may have a forgotten CD, contact your bank or your state's unclaimed property office to check.

The Bottom Line

Renewing a CD doesn't have to be complicated, but it does require paying attention to one short window. If you're happy with your bank's current rate and don't need the cash, letting your CD auto-renew during the grace period is the simplest path.

If rates have moved, or your goals have changed, that same seven-to-10-day window is your chance to renew into a different term, shop a better rate elsewhere or move the money into something more flexible, all without a penalty.

Mark your maturity date now, watch for your bank's notice, and take a few minutes during the grace period to confirm you're getting the best deal for where your money sits next.

Key Terms

• Maturity date: The last day of a CD's term, when you can access your principal and interest without an early withdrawal penalty.

• Grace period: The short window, often seven to 10 days, after a CD matures during which you can withdraw, renew or transfer funds without a penalty.

• Automatic renewal (rollover): The process by which a bank rolls a matured CD's balance into a new CD of the same or similar term if you don't give other instructions.

• Early withdrawal penalty: A fee, often equal to several months of interest, charged for taking money out of a CD before its maturity date.

• Annual percentage yield (APY): The total interest rate earned on a deposit account over a year, including the effect of compounding.

• Principal: The original amount deposited into a CD, not including any interest earned.

• Brokered CD: A CD purchased through a brokerage rather than directly from a bank, which typically does not renew automatically at maturity.

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Sources

• Consumer Financial Protection Bureau: What Is a Certificate of Deposit (CD) Rollover or Renewal?; Regulation DD, 12 CFR 1030.5

• Chase: CD Renewal

• Ally Bank: CDs Help Center

• Citi: When Should You Renew Your Certificate of Deposit (CD)?

• Wells Fargo: Savings and Certificate of Deposit (CD) Interest Rates

• Marcus by Goldman Sachs: CD Explorer

• Synchrony Bank: What Should You Do When Your CD Matures?

• ETRADE from Morgan Stanley: CD Maturity

Summary generated by AI, verified by MoneyLion editors

FAQ

Here are quick answers to common questions about what to do when a CD matures:

How long is a CD grace period?

Most banks offer a CD grace period of about seven to 10 days after the maturity date, though the exact length varies by bank and, at some institutions, by the CD's original term. Your maturity notice or account agreement will state the exact number of days you have.

What happens if I miss my CD's grace period?

If you miss the grace period, your funds are typically locked into the new CD term that your bank automatically renewed. Withdrawing before the next maturity date will generally trigger an early withdrawal penalty, which is often calculated as a set number of months' interest.

Will my CD automatically renew at the same rate?

No. If your CD renews automatically, the new rate reflects whatever your bank currently offers for that term on your maturity date, not the rate you originally locked in. That new rate could be higher or lower depending on market conditions.

Can I add money to a CD when it matures?

In many cases, yes. Some banks let you add funds when you renew a matured CD into a new term, though the rules vary by institution. Ask your bank during the grace period whether it allows additional deposits at renewal.

What happens to a CD if I never claim it after maturity?

If a matured CD sits untouched for an extended period without any contact or transactions, the funds can eventually be classified as unclaimed property and turned over to the state. If you think you may have a forgotten CD, contact your bank or check your state's unclaimed property database.