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Is your CD maturing soon? Here are the dos and don’ts to know
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Certificate of deposit (CD) accounts have been a good bet for savers in recent years.
Thanks to a combination of inflation and boosts to interest rates to combat it, savers have seen rates on CD accounts rise exponentially. Now, finding an account offering 5% or more in various terms is not difficult. If you’re one of those savers who have been able to take advantage of this opportunity, however, you may be wondering about your next steps. After all, CDs by their nature, won’t remain the same forever and rates and terms can change upon the CD’s maturity.
Understanding this, savers should prepare now – before the CD term matures – so that they’re best positioned to earn even higher returns with their next account. To effectively do so, savers should understand some important dos and don’ts.
Start by seeing how much more you could be earning with a top CD here now.
3 things to do before your CD matures
Here are three important steps to take before your CD hits its maturity date:
Start shopping around
The rate climate may have changed significantly since you first opened your CD so start shopping around now to see what other options are available. You may be able to find an account with a higher rate, better terms and few or no fees. But you’ll need to do this in advance so you’re ready to move your funds when the account has matured.
Start shopping for CDs here now.
Contact your lender
You’ll typically have a small window in which you can access your funds after the CD has matured. So make sure to contact your lender now – in advance – so you know what your options are for that time frame. Ask how long you have to access the money, if there are any fees or penalties for doing so and what will happen if you leave the funds untouched. By knowing your options and limitations, you’ll be able to build the best-informed plan.
Have a plan
There aren’t many savings account options as beneficial as CDs right now, so you want to avoid losing this opportunity. But you also want to be able to capitalize on today’s rate climate for as long as possible. And you can only do both by having a well-thought-out and ready-to-go plan. So do your research, understand your financial goals (long-term and short-term), speak to your lender and develop a plan for the next steps.
3 things to avoid before your CD matures
Here are three important moves you may want to avoid as your CD term comes to an end:
Letting it automatically rollover
You don’t necessarily need to make any moves if your CD is set to mature. Most lenders will just let it automatically roll over into a new CD. But that could be a mistake if it’s set to rollover into an account with a lower rate and less favorable terms. So don’t let your account roll over into a new one without first checking to see if the new one is as advantageous as other readily available options.
Keeping the same rate
While you may have opened your CD with what was a high rate at that time, you may be able to secure a significantly higher one now. So don’t be content with what you had three, six or 12 months ago. You may easily be able to find an account with a better rate now, possibly even with the same lender, making the switch between accounts a seamless transition.
Putting it back in a regular account
Traditional savings accounts come with an average rate of just 0.45% right now. So it would be a mistake to put your funds back into one of those accounts post-CD maturity. Instead, consider opening a new CD with a potentially even higher rate right now. Or move some (or all) of those funds into a high-yield savings account, instead. Just avoid putting your money back into a traditional account where it won’t even keep pace with inflation.
The bottom line
With inflation persistent and interest rates elevated, now is still a great time to keep your money in CDs or open new ones. If you have a CD set to mature soon, however, it’s important to start shopping around to review alternatives, contact your lender to clearly understand the next steps and prepare a plan for post-CD maturity. It’s also critical to avoid some simple but easy-to-make mistakes like letting it automatically roll over, keeping the same rate you opened the account with and taking it out to put it back in a regular account. By understanding these dos and don’ts now savers will be best positioned to earn high returns on their CD accounts now and long into the future.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.