What to do if your CD account matures this May

Savers with CD accounts set to mature this May should take proactive steps right now. Kutsal Lenger/Getty Images

In the high-interest rate climate of recent years, certificates of deposit (CD) accounts stood out as smart and effective ways to grow and protect your money. With interest rates on select accounts as high as 6% or 7% and with those rates fixed for the full CD term, it made sense to park a portion of your money in one of these accounts as the battle against inflation evolved. And even when your CD account matured in 2022, 2023 or 2024, opening a new one was typically an obvious choice, since rates remained elevated and market unpredictability was still pronounced.

But what about now, in the unique interest rate climate of May 2025? Inflation, after all, is honing in on the Federal Reserve's target 2% goal and interest rates appear to be on pause, at least for when the Federal Reserve meets again on May 6 and May 7. At the same time, stock market volatility in April could have damaged your savings and investments, perhaps to a significant degree. Against this backdrop, what should you do if you have a CD account set to mature this May? That's what we'll examine below.

Start by seeing how much interest you could earn by opening a new CD account here.

What to do if your CD account matures this May

Here are three smart moves to make if you have a CD account set to mature this month:

Start researching your options right away

The days of a plethora of high-rate options to choose from have passed. But that doesn't mean that savers still can't secure a rate of 4% or more on a new, short-term CD account now. They can secure a similar rate on a high-yield savings account, too, and they won't need to forego access to their funds the same way they were accustomed to with a CD. 

Still, high-yield savings accounts have variable rates subject to change based on market conditions, which may not be advantageous if rate cuts are issued again later this year, as anticipated. But with the average rate on a traditional savings account just 0.41% right now, it doesn't make sense to take the matured funds out of a high-rate account to put them back into a regular account, either. Instead, start researching your alternative options now so you're prepared to make the right move for your money as soon as it becomes available again.

Check your high-yield savings account rate offers online today.

Consider the affordability of a long-term CD

Long-term CDs, which have terms longer than one year, have rates lower than short-term CDs right now. For example, 18-month and 2-year CDs are around 4.15% while 6-month and 3-month CDs are around 4.40%. But the extended interest-earning potential with the long-term CD will ultimately result in a greater amount of interest earned. 

At the same time, it will require the sacrifice of losing access to your money for a longer period, which may not be ideal in today's economic climate. Consider the affordability of a long-term CD, then, before acting, as any premature withdrawals are likely to result in an early withdrawal penalty, which could be costly for a long-term CD in which interest has accrued over a lengthy amount of time.

Reach out to your bank

While researching your high-yield savings account and long-term CD options is important, it's equally as critical that you reach out to your bank now, before the CD account formally matures later in May, to discuss your next steps. There will be a short window of opportunity to act after the CD matures (your grace period), but if you don't move the funds during that period (usually a week or so), the bank is likely to rollover your funds into a new CD, which could result in your money getting stuck in an account with a lower rate. So be proactive now and start talking to your bank about your intentions and, if the money is in a CD with a bank with a physical branch, consider moving it to an online bank, which tends to have better rates and terms for savers.

The bottom line

While the CD interest rates of 2023 are no longer readily available, these account types can still be advantageous for savers this month. They'll just need to be prepared with the next steps they want to take before their account matures in the weeks ahead. By exploring their options, crunching the affordability of a long-term CD, and discussing their next steps specifically with their bank, savers can make the most out of their maturing CD account funds now and position themselves for additional, high-interest earning opportunities in the months and, possibly, years ahead.

Matt Richardson

Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.