Key Facts

• CDs had high interest rates (6-7%) in recent years, making them attractive during times of inflation and uncertainty.
• Interest rate cuts are currently paused, and inflation is rising, making safe and profitable savings important.
• When a CD matures, many banks automatically renew it, which might lock you into a lower rate.
• You have about two weeks (grace period) after maturity to decide what to do with your CD funds.
• It’s best to tell your bank not to auto-renew if the new rate is lower and withdraw the money if needed.
• Many online banks offer CD rates around 4% or higher, which may be better than your current rate.
• Traditional savings accounts offer very low interest (about 0.38%), so putting your money there is less profitable.
• Using a 6-month CD with a rate over 4% can earn you much more than leaving money in a savings account.