What happens when CDs mature? I’m sure it varies by institution. I’ve only had a handful of CDs in my life because the last few years interest rates have been so low it hasn’t been worthwhile. The last few months I’ve been buying CDs.
I think one I had matured and the CD principal went right into the savings account.
But I think the NFCU CD I have said something in the CD terms that at the end, it would auto renew into a new CD unless I contacted them within like one week of maturity. I really don’t like that. Because I want the default to be go into savings account. I haven’t tried to call them yet to find out if I can trigger it to go into savings account now (for when it eventually matures).
NFCU aside, please tell me in general what are the different possibilities that exist (maybe it’s only two? reinvest in a new CD of same duration or deposit into savings?)
Any gotchas that banks try to screw you over with if you aren’t paying attention? The re-deposit into a new CD seems like a gotcha for me, but that’s because I’m limiting my CD purchases to special rate promo deals. And also because I am structuring my CDs to pay for certain future bills. I have a CD expiring on April 10th to pay my 2018 tax bill and 2019 Q1 Estimated payment. If they auto-renewed that I’d be upset, although I suppose I could always “break it early” and take a virtually zero penalty, but I think some banks make it up to their discretion if they allow you to break it early (at least in the fine print).
Any pro tips on CD maturities? Perhaps related to laddering or anything else?