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Should you rollover your CD after it matures? Experts weigh in
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With inflation still above the Federal Reserve’s preferred 2% annual measurement, the central bank has kept rates steady recently. For savers, that has translated into continued attractive rates on accounts like certificates of deposit (CDs).
But while CDs can provide a guaranteed return for a fixed period, it’s not always clear what you should do when a CD matures. Is it better to rollover a CD into a new one? Or are you better off taking the cash when the CD matures and depositing it into another type of CD or a different type of account altogether?
Unfortunately, there’s no universal answer. It depends on both your personal situation and the broader economic situation at the time you reach CD maturity. That said, there are some clues that can help you determine when to rollover a CD and when to take the cash out. We spoke to some experts to see what they suggested.
See how much you could be earning with a top CD here now.
Should you rollover your CD after it matures?
There are some times when you should rollover your CD upon maturity and some other situations when you may not want to. Here’s what to know.
When you should rollover your CD after it matures
A main reason why you might rollover a CD after it matures is if you can still get an attractive return from a CD. Note, however, that interest rates can change from the previous CD yield to the new one at the time of the rollover.
That said, you might decide to do a rollover to get a guaranteed interest rate for the duration of the new CD term. If you’re worried about interest rates falling, for example, then you might prefer the certainty that comes from a CD, compared with an account that has variable interest rates, like a high-yield savings account.
“If interest rates are favorable and you don’t need immediate access to your cash, rolling over your cash into another CD is a good option for your bottom line. As long as you stick within the federal insurance limits, CDs are a secure and guaranteed investment,” says Ben McLaughlin, US president at Raisin, a global financial technology company.
You also might rollover a CD if doing so helps you reach a particular financial goal. Suppose you have a 1-year CD maturing, and you don’t need access to the cash now but would instead like to save for a purchase next year, such as for a new car. In that case, rolling over the CD into another 1-year CD — especially if you can improve your CD rate — could be a good justification.
“Rollover a CD into a new one if the new CD offers a higher interest rate, aligns with your investment timeline, and if you don’t need immediate access to the cash,” says Cliff Ambrose, founder and wealth manager at Apex Wealth.
Learn more about your rollover options here now.
When you shouldn’t rollover your CD after it matures
While a CD rollover can be helpful at times for locking in interest rates, it’s not always the best use of your funds. For one, you might be able to get a better return from other types of accounts or investments.
“Before rolling over a CD, you’ll want to compare the interest rate of the new CD to not only other CDs being offered, but also the current interest rates for Treasury bills and money market funds,” says Matt Hylland, a financial planner at Arnold and Mote Wealth Management.
“Treasury bills offer an advantage over CDs because the interest earned is not taxable at the state level,” which is particularly helpful for those in high-tax states, adds Hylland.
Or, you might decide that you want more liquidity, so renewing when your CD term ends wouldn’t make sense. “Money market funds have an advantage of being more liquid. They can be sold at any time without any penalties, unlike CDs,” says Hylland.
Similar to money market funds, you also might be more comfortable putting your money in a high-yield savings account.
“If accessibility is important to you, you may want to put your cash into a high-yield savings account, where it will continue to earn interest but can be withdrawn when you need it,” says McLaughlin.
Consider your investment horizon and risk tolerance too. While CDs can provide a guaranteed return, you might no longer need that certainty. Instead, you might look for a “longer-term investment with the potential for higher returns,” says Hylland. For example, investing in stocks and bonds might be a better fit if you’re trying to save for a long-term goal like retirement.
The bottom line
Deciding when to rollover a CD vs. take the money depends on multiple factors. Not only do you want to consider the interest rate you could get by rolling over your funds into a new CD, but you also want to compare that to other types of savings accounts and investments.
Consider your liquidity needs and risk tolerance too. If you want more access to your money with limited risk, you might choose an option such as a high-yield savings account. If guaranteed returns are most important to you, then you might prefer to rollover your CD. Or, if you want to take on more risk in search of higher returns, you might invest in stocks or bonds.
Frito-Lay is recalling a limited number of 13 oz. bags of Lay’s Classic Potato Chips after being alerted by a consumer contact that the product may contain undeclared milk.
The bags of chips affected by recall were distributed to certain retail stores and e-commerce distributors in Oregon and Washington and were available for sale beginning Nov. 3, 2024.
“Those with an allergy or severe sensitivity to milk run the risk of a serious or life-threatening allergic reaction if they consume the recalled product,” the Food and Drug Administration said in the recall notice posted Thursday.
No allergic reactions related to the recall have been reported, according to the recall. Additionally, no other Lay’s products, flavors, sizes or variety packs are affected.
FDA
The recalled chips include Lay’s Classic Potato Chips, in flexible 13 oz. (368.5 grams) bags with UPC code 28400 31041, a “Guaranteed Fresh” date of 11 Feb 2025, and one of either two manufacturing codes: 6462307xx or 6463307xx.
General guidelines from the FDA advise consumers who have purchased any recalled food to dispose of the product or return it to the retailer for a full refund.
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What is the debt ceiling? Here’s why Trump wants Congress to abolish it before he takes office
Washington — President-elect Donald Trump, Vice President-elect JD Vance and billionaire Elon Musk blew up a GOP-backed deal to fund federal agencies into March, raising the pressure on Republican congressional leaders to craft a plan to avert a government shutdown just before the holidays.
In a statement Wednesday, Trump and Vance lambasted the agreement for including provisions favored by Democrats. But the incoming president and vice president also added a new, significant wrinkle to negotiations when they urged Congress to raise or abolish the debt ceiling now, instead of next year.
“Increasing the debt ceiling is not great but we’d rather do it on Biden’s watch,” Trump and Vance said in their statement. “If Democrats won’t cooperate on the debt ceiling now, what makes anyone think they would do it in June during our administration? Let’s have this debate now.”
What is the debt ceiling?
Set by Congress, the debt ceiling, or limit, is the maximum amount of money the U.S. Treasury is authorized to borrow to pay debts incurred by the federal government. Lifting the debt ceiling does not authorize new spending, but instead lets the government spend money on obligations that Congress has already been approved.
Failing to address the debt ceiling could lead the U.S. to default on its debt, which would have devastating effects on the economy. The government has never defaulted, and the Treasury typically uses accounting moves, known as “extraordinary measures,” to delay breaching the debt ceiling.
While raising the debt ceiling used to be routine, legislation addressing it has in recent years been used as leverage to force policy concessions and fuel debates over government spending.
Congress last addressed the debt ceiling in June 2023 as part of a legislative package negotiated by President Biden and then-House Speaker Kevin McCarthy. That deal suspended the debt ceiling through Jan., 1, 2025, ensuring any fight over it would take place after the 2024 elections.
The Treasury Department will likely implement extraordinary measures to stave off a default in the new year. It will also announce an “X date,” the estimated point at which the government will no longer be able to pay its obligations. The Economic Policy Innovation Center, a conservative think tank, projected in an analysis released Monday that it’s possible the debt limit will be reached by June 16.
While the Treasury Department’s use of extraordinary measures would give Congress more time to address the debt ceiling, Trump is now urging lawmakers to take action now, before he takes office.
Why does Trump want to raise the debt ceiling?
The president-elect will come into office with a legislative to-do list that includes securing the border and extending provisions of his signature Tax Cuts and Jobs Act, which was enacted in 2017 and overhauled the tax code. But a fight over the debt ceiling could complicate efforts by the Republican-led House and Senate to focus on those legislative initiatives and pass them quickly.
Trump is urging lawmakers to eliminate the debt ceiling altogether, a position that some prominent Democrats have endorsed in the past.
“Number one, the debt ceiling should be thrown out entirely,” Trump said in a phone interview Thursday with CBS News’ Robert Costa. “Number two, a lot of the different things they thought they’d receive [in a recently proposed spending deal] are now going to be thrown out, 100 percent. And we’ll see what happens. We’ll see whether or not we have a closure during the Biden administration. But if it’s going to take place, it’s going to take place during Biden, not during Trump.”
Trump separately told ABC News that “there won’t be anything approved unless the debt ceiling is done with,” indicating any spending deal to prevent a shutdown must address the debt limit.
“If we don’t get it, then we’re going to have a shutdown, but it’ll be a Biden shutdown, because shutdowns only [injure] the person who’s president,” he told ABC News.
Whether Republicans and Democrats would go along with such a plan, though, is far from clear. GOP lawmakers in both chambers have opposed raising the debt ceiling without spending reforms, and debates over the debt limit often give way to broader fights over the federal budget, which conservatives in Congress have said is bloated and should be reduced. Plus, Democrats still control the Senate and the White House.
White House press secretary Karine Jean-Pierre said in a statement Wednesday that shutting down the government would harm families and endanger services Americans rely on.
“Republicans need to stop playing politics with this bipartisan agreement or they will hurt hardworking Americans and create instability across the country,” she said. “President-elect Trump and Vice President-elect Vance ordered Republicans to shut down the government and they are threatening to do just that — while undermining communities recovering from disasters, farmers and ranchers, and community health centers.”
House Democratic Leader Hakeem Jeffries suggested Democrats would not go along with a plan pushed by Republicans to raise the debt limit.
“GOP extremists want House Democrats to raise the debt ceiling so that House Republicans can lower the amount of your Social Security check. Hard pass,” the New York Democrat wrote on the social media platform Bluesky.
Jeffries also told reporters “the debt limit issue and discussion is premature at best.”
