3 CD account mistakes savers should avoid this September

CD accounts can still be valuable for savers this September, assuming they avoid some costly mistakes. OsakaWayne Studios /Getty Images

Certificate of deposit (CD) accounts have been so favorable for savers for so long that it almost seems like there's no way to negate the benefits of these accounts. Simply deposit an amount of money you're comfortable temporarily parting with and be rewarded with a high rate of return. With rates hitting as high as 6% in recent years and rates still readily available around 4.50% now, this has been one of the better and safer ways to grow your savings without having to worry about market volatility.

But that could be changing as soon as this September. With a new Fed rate cut looming for later in the month and the reality that a cooler rate there will mean cooler rates for savers, the approach to opening a CD (or managing a new one) isn't as straightforward as it's recently been. There are some strategic moves savers should make in this environment. And there are equally important mistakes that should be avoided. Below, we'll break down three of the latter worth knowing right now - as well as what to do instead.

Start by seeing how much you could be earning with today's top CD rates here.

3 CD account mistakes savers should avoid this September

Want to maximize your CD account benefits this month and avoid any costly mistakes (and penalties)? Start by circumventing these simple but easy-to-make mistakes now:

Shopping around for too long

Shopping around to find banks offering the highest rates and best terms is undoubtedly one of the best ways to find an attractive CD account. But you can't have perfection be the goal right now; not with rate cuts looming and banks looking to preemptively reduce what they offer savers even before a cut is made official. 

You should still shop around to find an account that works for you. And you should still likely use an online bank, which tends to offer better rates and fewer fees. But don't shop around for too long now, either. With CD rates being fixed, you'll want to lock in the highest rate you can find as quickly as possible, before a cut is issued. And that won't happen if you're overly occupied by shopping around.

Start your CD account shopping promptly online today.

Not monitoring the rate climate

Sure, many experts expect the Fed to issue another rate cut when it concludes its next meeting on September 17. But that doesn't mean that CD rates will only be impacted then. They could change in the days that follow. And, with some lenders, they may even decline in the days leading up to a cut, as lenders don't need to wait for the Fed to adjust the rates they offer savers. Not monitoring the rate climate, then, is always a mistake but it could be a particularly costly one this September as the Federal Reserve moves to issue its first formal rate cut of 2025.

Letting existing CD accounts automatically rollover

What about those savers who already have CD accounts set to mature this month? Be extra careful, then and avoid letting them automatically rollover into a new account. There will be a limited grace period of approximately two weeks in which your funds will become available again before the bank reenrolls them in a new account, almost assuredly one with a lower rate than your current account. So don't let that happen. 

Have a plan in place – whether it be to open a new CD account online, transfer the funds into a high-yield savings account or money market account or something else entirely – and let the bank know about your plans now, before the grace period concludes. Having your funds rollover into a new account that you then want to access will generally require paying an early withdrawal fee but that can be avoided by taking action now.

The bottom line

The above list is not exhaustive and should instead be used judiciously by savers and considered a good starting point. Only you will know which approaches make the most sense, not only for your CD accounts but for your overall savings goals. By steering clear of these mistakes, however, you can better ensure savings success long term, whether that be via a CD account, a high-yield savings version or some combination of account types and terms now.