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CD Renewals: What Happens When the Term Ends

A certificate of deposit requires attention when its term ends, even if the original purchase was simple. The renewal rate, new term, and withdrawal conditions may no longer fit the purpose of the savings. Compare renewing with other deposit options using both access and return, and keep the maturity date where you will see it before the decision window closes.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

What is a certificate of deposit (CD)?

A certificate of deposit, or CD, is a type of savings account offered by banks and credit unions. You generally agree to keep your money in the CD without taking a withdrawal for a specified length of time. Withdrawing money early means paying a penalty fee to the bank.

Tip

Select your CD maturity date based on your expected needs. For example, if you plan to spend the money you are going to save in a CD in five years, you should look at five-year CDs – that’s what most banks call CDs with a term or maturity date five years in the future.

When you shop for a CD, compare different offers by looking at the term (that is, the time you agree to leave your money in the CD), the interest rate you earn, and the amount of the penalty for withdrawing money before the end of the term.

Are CDs FDIC-insured?

CDs offered by banks are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), and those offered by credit unions are insured up to $250,000 by the National Credit Union Administration (NCUA).

What is a certificate of deposit (CD) rollover or renewal?

A rollover or renewal can occur at the end of the term of a CD.

If your CD has a rollover or renewal, the money you originally deposited will be invested in a new CD. The interest already earned may also be invested in the new CD. Some CDs don’t have a rollover feature so when they mature they will stop earning interest.

Your bank or credit union may rollover your CD automatically at the end of the CD term unless you tell them not to. However, a bank or credit union is required to send you a notice in writing before the CD matures, and the notice will tell you when your current CD ends and whether it will renew automatically.

Tip:

Compare rates before you roll over or renew an existing CD. The interest rate for the new CD is not guaranteed to be the same as the interest rate for your current CD – it may be higher or lower. You may want to see if your bank or credit union is offering a promotional rate that is better than the rate on the rollover or renewal CD.

The interest rate offered for CDs (certificates of deposit) is low. Is there anything I can do about that?

When choosing a CD, you have many different options that can affect the interest rate.

Generally, you may be able to get a higher interest rate by selecting a later maturity date, which means you must leave your money in the CD longer. For example, a two-year CD generally will have a higher interest rate than a six-month CD.

Another possible option is a variable-rate CD, sometimes called a “multi-step,” “bonus rate,” or “step up” CD. The interest rates on these CDs may change according to rules explained by the CD issuer. Choosing a variable-rate CD can increase or decrease your overall earnings for that CD.

“Callable CDs” may also offer higher rates. A callable CD is one in which the bank or credit union can end the CD agreement before the maturity date and return your money with the interest that has been earned to that point. Because you take some risk in not knowing whether your callable CD will reach full maturity, banks and credit unions typically offer higher rates on callable CDs than they do on other CDs. But, if the bank or credit union decides to “call” your CD early, you may be forced to withdraw your money or to reinvest in a product with a lower rate. The CD agreement will indicate whether or not your CD is callable.

The CD with the highest rate may not always be the best fit for your needs. You should look closely at the different terms to see what type of CD might be right for you.

Tip:

If you are flexible about how long you can leave your money in the CD, ask if there are any promotional rates. Some banks and credit unions offer a promotional rate for a certain length of CD. If you pick the promotional CD, you may get a higher interest rate.

Should I get a checking account that pays interest?

Financial institutions may offer checking accounts that pay interest, but usually at very low rates. These accounts often have higher fees than checking accounts that don’t pay interest. Read the terms carefully to see if the interest you earn will outweigh the fees you must pay.

Most banks and credit unions offer a variety of checking accounts based on your needs. Some accounts may require a minimum dollar amount to open and charge monthly maintenance fees if you don’t meet a requirement, such as keeping a minimum balance, setting up a monthly direct deposit, or linking to a debit card.

Accounts which offer interest may have higher fees or require a larger minimum monthly balance than non-interest-bearing checking accounts.

It is always a good idea to compare checking account fees and terms to see which account and fee structure will cost you less for the way you bank, so you can avoid unnecessary fees that may cost more than the interest you’ll earn on your monthly balance.

If you want an interest-bearing bank account, you may also consider a savings account or money market account.

Tip: Because interest rates on deposit accounts are currently very low, fees and minimum balance requirements usually have a much bigger impact on the net value of a checking account than any interest you might earn on a checking account.

What is a money market account?

A money market account is a type of account offered by banks and credit unions. Like other deposit accounts, money market accounts are insured by the FDIC or NCUA, up to $250,000 held by the same owner or owners.

Money market accounts tend to pay you higher interest rates than other types of savings accounts. On the other hand, money market accounts usually limit the number of transactions you can make by check, debit card, or electronic transfer. Usually you can make unlimited withdrawals and payments by using an ATM or by making the withdrawal in person, by mail, or by telephone. A money market account might require a minimum amount to be deposited.

If you have multiple accounts with a bank or credit union, talk to your bank or credit union to confirm your FDIC or NCUA insurance coverage.

What’s the difference between a money market account and money market mutual fund account?

A money market mutual fund account is considered an investment, and it is not a savings or checking account, even though some money market funds allow you to write checks. Mutual funds are offered by brokerage firms and fund companies, and some of those businesses have similar names and could be related to banks and credit unions—but they follow different regulations. For information about insurance coverage for money market mutual fund accounts, in case your brokerage firm fails, see the Securities Investor Protection Corporation (SIPC) .

To look up your account’s FDIC protection, visit the Electronic Deposit Insurance Estimator or call the FDIC Call Center at (877) 275-3342 (877-ASK-FDIC). For the hearing impaired, call (800) 877-8339.

Accounts at credit unions are insured in a similar way in case the credit union’s business fails, by the National Credit Union Association (NCUA). You can use their web tool to verify your credit union account insurance.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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