Should You Renew Your CD?

1. Home
2. Personal Finance
3. Banking
4. Savings
5. Savings Accounts

Should You Renew Your CD?

With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.

By Ella Vincent published 16 December 2025 in How Tos

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Share Share by:

• Copy link
• Facebook
• X

Share this article Print Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter

After you put money in a certificate of deposit, you can sit back while it collects interest over its term. Once it reaches maturity, you’ll face a decision: Renew it or withdraw the funds.

Typically, you have a grace period of about seven to 10 days after a CD hits its maturity date to decide what to do. Your bank may send you a notification a few weeks before the certificate matures.

When you open a CD, it’s also a good idea to put a reminder on your calendar of when the certificate is nearing the end of its term. With this in mind, we'll explain what happens if you miss your grace period, whether now is a smart time to renew with rate cuts and where to find the best CD and savings rates.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

What happens if I miss my grace period?

If you don’t act during the grace period, most banks will automatically reinvest the funds into a CD with the same term or a similar one, and the interest rate will typically match what the bank is offering for that maturity on new CDs.

Whether you should renew depends in part on how you’d like to use the money. If you don’t need the cash now, reinvesting may make sense as part of your longer-term savings plan.

Evaluate the interest rate. "Rates on top-yielding CDs are still outpacing inflation," says Ted Rossman, senior industry analyst at Bankrate.

How Fed policy impacts savers

(Image credit: Kent Nishimura/Bloomberg via Getty Images)

However, as the Federal Reserve lowers short-term rates — it made cuts of a quarter-point in September, October and December, with more reductions likely on the way — CD yields also fell.

If you have a CD coming up for renewal soon, you may want to reinvest in a high-yield certificate, whether from the same institution or a different one, to lock in the yield before rates drop further.

We’ve listed top-yielding one- and five-year CDs (check the institution’s current rates before you invest).

The best one-year CD rates

Swipe to scroll horizontallyTop-earning one-year CDs

Account

APY

Min Deposit

Early Withdrawal Penalty

Limelight Bank

4.05%

$1,000

3 months of interest

Colorado Federal Savings Bank

3.90%

$5,000

3 months of interest

Prime Alliance Bank

3.85%

$500

3 months of interest

Mountain America Credit Union

3.85%

$500

3 months of interest

Bask Bank

3.85%

$1,000

3 months of interest

The best five-year CD rates

Swipe to scroll horizontallyHighest earning five-year CDs

Account

APY

Min. Deposit

SchoolsFirst Federal Credit Union

4.00%

$500

Credit Human

3.90%

$500

Marcus by Goldman Sachs

3.90%

$500

MYSB Direct

3.80%

$500

The Federal Savings Bank

3.80%

$5,000

EFCU Financial

3.75%

$500

Securityplus Federal Credit Union

3.60%

$1,000

Lafayette Federal Credit Union

3.56%

$500

You can also compare rates at depositaccounts.com/cd.

If you’d rather not commit to a CD but need a place to park your cash, consider a high-yield savings account.

Best high-yield savings accounts

Swipe to scroll horizontallyTop-earning high-yield savings accounts

Account

APY

Min. opening deposit

Newtek Bank

4.35%

$0

Ivy Bank

4.25%

$2,500

Bread Savings

4.10%

$100

Jenius Bank

4.05%

$0

My Banking Direct

4.02%

$500

Poppy Bank

4.00%

$1,000

BrioDirect

4.00%

$5,000

Related content

• Best CD Rates — A Risk-Free Way to Save
• Are High-Yield Savings Accounts Still Outpacing Inflation?
• Best High-Yield Savings Accounts

Get Kiplinger Today newsletter — free

Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Ella VincentSocial Links NavigationStaff Writer

Ella Vincent is a personal finance writer who has written about credit, retirement, and employment issues. She has previously written for Motley Fool and Yahoo Finance. She enjoys going to concerts in her native Chicago and watching basketball.