When your certificate of deposit matures you usually have a window (10-15 days in many cases) of time to decide what to do next.  This is often referred to as the grace period before automatic renewal of the CD kicks in.  Usually, your bank will automatically reinvest into a new CD if you don’t give them alternate instructions.  Make sure you know the policy, and that you give proper instructions if you don’t want the money rolled into a new CD especially if that bank is no longer offering the best CD rates for the term you are interested in.  If you don’t provide instructions, the bank will not indiscriminately renew the CD into a different term CD that earns a far worse interest rate.  The bank will almost always have a policy for renewing the maturing CD into a CD with same term or if it is a promotional CD with an odd term, it will renew to a CD with a similar term.  The renewal policy will be clearing communicated in the savings disclosure.  You simply don’t want to shop and compare the best CD rates only to watch the CD mature and subsequently renew into a CD that does not have a competitive interest rate.

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