So what happens when my cd matures

[TallBill]

I have a few CDs at about 4.8% which mature in a few months. If I dont take them out in my 7 day window are they nenewed at the new rate or the old rate? I'd guess new rate, but who knows.

 

[allisolm]

Usually they will rollover for the same amount of time as the original CD at whatever the current rate is.

 

[DaveSimmons]

The current rate, you can call to find out what it is.

If you won't need the money for a year, renewing is a good idea since rates will probably go down this year not up. If you might need the money, cash out and move to savings but you'll earn less, probably at least 0.5% as rates fall.

 

[Cerpin Taxt]

I used to work with a bank consulting company, and we would teach them whenever possible to roll-over expired deposits into much lower-paying accounts. The idea is to segment your market among price-sensitive and non-price-sensitive customers. So, the bank will run a promotional rate on something unusual, like a 7-month CD or something, and then drop the rates on its other accounts.

The customers that are paying attention will move their money into the promotional account for the better rate, while the lazy or otherwise unaware customers end up getting the rate dropped on them.

 

[Foxery]

Where is the account hosted? If it's an actual investment firm, it sits around as cash, earning a low, short-term interest rate.

 

[alkemyst]

depends on the terms definitely.

With CD's and the like you are usually going to do your best shopping around at each maturity.

 

[DaWhim]

Originally posted by: Foxery
Where is the account hosted? If it's an actual investment firm, it sits around as cash, earning a low, short-term interest rate.

I think i have the same CD with hsbc. I put my 0% APR credit card to get that.

 

[TrueBlueLS]

At my work, you'll get the crappiest rate out there for letting it roll over. We emphasize not being lazy to come in and renew the CD so we don't hear complaints about how you're earning about 1% of interest.

 

[JulesMaximus]

So what happens when my cd matures

They usually just stop playing in my CD player and I have to burn a new one.

 

[tfinch2]

Originally posted by: JulesMaximus

So what happens when my cd matures

They usually just stop playing in my CD player and I have to burn a new one.

That was terrible...

 

[JulesMaximus]

Originally posted by: tfinch2

Originally posted by: JulesMaximus

So what happens when my cd matures

They usually just stop playing in my CD player and I have to burn a new one.

That was terrible...

Haven't heard anything amusing out of you lately.

 

[alphatarget1]

I thought most automatically renew.... you won't get better than 4% APY these days :/