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4 things to do if your CD matures in July
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Certificate of deposit accounts, or CDs, have historically been smart ways to protect and grow your savings. But much of the success of these accounts is timed to when they’re opened and the rate at which they were opened. If you opened an account in 2020 or 2021, for example, when rates were abnormally low, the return you would have earned on an account would have been negligible. However, if you opened one in recent years as inflation surged and the federal funds rate rose with it, you would have earned a substantial amount of money, regardless of the CD term you chose.
That said, CDs don’t last forever, and once the account has matured, you’ll need to make some important decisions about your next steps. For those with a pending maturity date in July, then, it’s critical to start this process now — and equally important to avoid some easy-to-make mistakes. Below, we gathered a list of four things to do if your CD matures in July.
Start by exploring today’s CD rates here to see how much more you could be earning.
4 things to do if your CD matures in July
While everyone’s financial situation is different, it’s helpful to have a few recommendations available ahead of your July CD maturity date. Here are four to consider now:
Avoid letting it roll over
Many lenders will automatically roll over the funds in your current CD into a new one following a short grace period in between the time your first account matures and the time the new one begins. This could be a mistake, however, as there’s no guarantee that the account your money rolls over into will have as high an interest rate as your original one. So don’t let it automatically roll over without speaking to your lender about the next steps for your money.
Learn more about your current CD options here.
Ask about current rates
When you do speak to your lender, ask about current rates. It’s possible — if not likely — that you can secure a higher rate now than when you first started with the account, particularly if you’re approaching the end of a long-term CD opened in early 2022 or before. So, see what current rate your lender is offering you to keep your funds with them — and don’t hesitate to shop around for online lenders who may be able to offer you more competitive rates and terms than the bank with local, physical branches.
Move it to a long-term CD
The rate climate is constantly evolving and, right now, an interest rate cut for some point in 2024 looks likely. If that does come, it will affect what lenders are willing to offer savers on their CDs. And if inflation continues to cool, it could be the first of a series of rate cuts to come, all of which can affect what you can earn if you open a CD in the future. To prevent these potential diminishing returns, then, move the funds in your current CD into a long-term CD after they mature in July. This will ensure elevated returns for years to come, regardless of what happens in the wider rate climate.
Add more money to the account
Because today’s high CD rates may be fleeting, not only should you consider moving your current funds into a long-term CD upon maturity, but you should also add more money to the account if you have some available. The more you deposit into a new account, the more interest you can earn so it makes sense to maximize these rates as much as possible. Just don’t deposit more than you can comfortably part with for the full CD term otherwise you’ll risk having to pay an early withdrawal penalty to reclaim your funds.
Get started with a new, long-term CD here now.
The bottom line
Don’t wait for your CD to mature in July to consider your next moves. Instead, be proactive and talk to your lender to avoid letting the account automatically roll over and be sure to explore current rates for an opportunity to earn even more interest. You should also consider moving the money to a long-term CD to earn an elevated rate in the face of a potentially lower rate climate and look to add more funds to fully optimize the current CD account offers while they’re still around. By making these moves now, you’ll be better positioned for CD success in August and in the months and years ahead.
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With the fall semester coming to an end and the spring semester fast approaching, undergraduate, graduate and professional students who must borrow to pay tuition or living expenses should start exploring student loan options sooner rather than later. Borrowers can take out federal loans, including direct subsidized or unsubsidized loans, Grad PLUS loans or Parent PLUS oans. However, these federal loans have annual and lifetime limits and come with a fixed interest rate set by law.
Private student loans are another option, though, and they come with some big benefits. With interest rates dropping and the likelihood of federal loan forgiveness diminishing as the Trump Administration takes office, private student loans may, in fact, be the best option for some borrowers. Rates and terms for private lenders can vary from one lender to another, though, unlike with federal loans.
As a result, it’s important to understand how to get a low rate on these loans for the spring 2025 semester.
Find out how affordable a private student loan could be now.
How to get a low student loan rate for the spring 2025 semester
Here’s what experts say you can do to keep your borrowing costs affordable as you move into the spring semester.
Shop around among private student loan lenders
Many banks, credit unions and online lenders offer private student loans — and it’s important to explore all of your options if you want your loans to be as affordable as possible.
“Always shop around to see what the best possible rates are available to you,” says Domenick D’Andrea, co-founder at DanDarah Wealth Management.
Jack Wang, a wealth advisor and college financial aid advisor at Innovative Advisory Group agreed, noting that “rates on private student loans can vary significantly.”
Most private student loan lenders allow you to get rates quotes online, often without a hard credit inquiry, so your credit score won’t be impacted. However, as you’re shopping around, you must be sure you’re comparing similar loan offers.
“Loan terms impact the rate,” says Wang. “For example, borrowers can choose a fixed or variable rate, whether payments are required during school, and the loan repayment time.”
By focusing on all of these details, you can compare multiple loan offerings and understand monthly payments, total borrowing costs and how long it will take to be debt-free after graduation.
Start comparing your top private student loan options online now.
Improve your credit
It’s also a good idea to get your finances in order if you want to get the best student loan rates.
“Generally, the lowest interest rates are for those with the best credit and debt-to-income ratio, who also pick full payments while in school and who pick the shortest repayment term,” Wang says. “After all, these terms reduce the risk for the lender.”
D’Andrea suggests that you take steps like paying down existing debt to reduce your debt-to-income ratio and limiting the number of new credit cards and loans you apply for, as applying for too much new debt can hurt your credit score. It’s also important to make all loan payments on time to avoid lowering your credit score, D’Andrea says.
The more qualified you are as a borrower, the more loans you’ll be eligible for and the lower your rates will be.
Apply with a cosigner
Unfortunately, improving your credit can take time and it’s often not possible to do things like increasing your income while you are in school. The good news is that you still have options to pursue a private loan at an affordable rate even if your credit is less than stellar.
“Investigate a cosigner if you have a limited credit history or considerable debt already,” D’Andrea says.
A cosigner agrees to share responsibility for your loans. You’ll need to provide their financial details when you apply. If they have more income or better credit, their credentials can help you borrow more affordably.
Starting shopping early
The last key to getting an affordable loan is to start the process early.
“People tend to shop for student loans according to their college billing cycle. So if a college bills by semester, busy times tend to be early summer for fall bills, and November or December for spring bills,” Wang says.
While Wang notes that there’s no time during the year when loans go “on sale” and no specific seasonality to shopping for student loan rates, it can still be smart to start the process of borrowing sooner rather than later. The simple reason for that is that you’ll have more time to compare rates and terms — and to take steps like lining up a cosigner if you aren’t being offered great rates.
The bottom line
You don’t want to end up in a situation where spring tuition is due, you don’t have a loan yet and you’re forced to accept the first loan you’re offered despite unfavorable terms. If you get started comparing rates and offers today, you’ll have plenty of time to find the loan that’s best for your situation.
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