What to do if your CD account matures this September
Summary
Many certificate of deposit (CD) accounts will mature this September, and account holders need to decide what to do with their funds before the grace period ends. Moving money from a maturing CD to a traditional savings account is not recommended due to low interest rates, so savers should consider alternatives like high-yield savings accounts or money market accounts that offer higher returns and better access.Key Facts
- CD accounts opened months or years ago may mature this September.
- Banks usually allow about two weeks after maturity to decide what to do before automatic rollover.
- Traditional savings accounts currently offer very low interest rates (around 0.38%), which may not keep up with inflation.
- High-yield savings accounts can offer interest rates around 4.10% and allow easy access to funds.
- Money market accounts offer slightly lower rates than high-yield savings but provide check-writing abilities.
- Both high-yield savings and money market accounts have variable interest rates that can change with market conditions.
- Online banks often provide better interest rates than banks with physical branches.
- Savers are advised to compare options before moving their funds from CDs to other accounts.
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