Here's what not to do if your CD matures this July, according to experts

There are strategic moves that savers should be prepared to make if their CD account is set to mature this July. Getty Images

Recent years have been a boon for many savers who've enjoyed high rates in certificate of deposit (CD) accounts. In particular, those who opened a CD during the 2023–2024 rate surge likely earned a fixed rate above 5%.

Now, however, these CDs are reaching maturity at a time when rates are slightly lower. Those who let their CDs automatically renew could end up earning a lower annual percentage yield (APY). The average one-year CD now earns 2.03% APY, though top offers from online banks and credit unions reach up to 4.40% APY.

Fortunately, you have options, and knowing what not to do can help you choose the best one. After all, even the most seasoned CD investors can make mistakes that impact their future earnings and flexibility. Below, we'll explore expert-backed insights into the most costly missteps to avoid if your CD is set to mature this July so you can make informed decisions about what to do next.

Start by seeing how much you could be earning with a new, high-rate CD here.

Here's what not to do if your CD matures this July, according to experts

If you're wondering about your next steps, post-CD account maturity, it helps to know which mistakes to avoid making. According to the experts we spoke to, it's important to avoid taking the following steps this July:

Chasing the highest CD rate without considering the term

It's tempting to grab the highest rate you can find, especially after a long run of competitive CD yields. But longer terms can be a trap if you're not sure when you'll need the money again.

"The most common mistake I see is prioritizing the interest rate without considering the time commitment," says Melissa Estrada, founder of Fidela Wealth in Calabasas, California. "A rate that's a half percent higher may seem attractive, but if it locks up your funds for an extra year and you need that liquidity, it's not a smart move."

Ideally, you can time your CDs to mature in line with a savings goal, even if it pays less. For example, if you plan to put a down payment on a home in two years, a 2-year CD with the best available rate could be a smart choice. What you don't want to do is lock your money in a CD term that matures after you need it.

Compare current CD rates and terms here to learn more.

Letting your CD auto-renew

Letting your CD roll over without reviewing the new terms isn't always in your best financial interest. 

"One of the biggest mistakes I see savers make with CDs is letting them renew automatically into whatever the bank's newest rate is," says Kyle Newell, a financial planner and owner of Newell Wealth Management in Orlando, Florida. "Oftentimes, banks or credit unions will offer attractive rates to bring money in, then set renewal rates much lower than they originally offered." Newell says savers should always shop around for rates as they change often.

Estrada agrees: "I don't usually recommend auto-renew. I'm a believer in reevaluating every financial decision based on the current life circumstances. A lot can change in a year."

If you're not paying attention, your CD could renew before you even realize it. Make sure to note the maturity date and check for notices from your bank so you can explore your options beforehand. "Typically, banks will send notice of the CD maturing, but I have seen as short as a 7-day turnaround time," Newell adds.

Not reevaluating your financial goals before your CD matures

"A mistake too many make as their CDs reach maturity is not using this moment to reassess their financial goals and the best use of those funds," says Alex Beene, a financial literacy instructor at the University of Tennessee at Martin. "This maturity date offers the opportunity to look at other CD rates both within and outside of that institution to see which one is best, as well as considering other options like high-yield savings accounts that could offer similar rates with more lenient withdrawal requirements."

Before your CD's maturity date, ask yourself some hard questions about what your next large purchases are and how soon you'll need the funds. These are timely considerations you must make, especially as you decide whether to roll over your funds and lock up your money for another term.

Moving your money into a regular savings account

Another common mistake to avoid when your CD matures is taking your funds and parking them in a regular savings account. By doing so, you could potentially miss out on better returns.

Consider this: As of June 2025, the national average savings account rate is just 0.38%, according to FDIC data. By contrast, the average 12-month CD rate is more than four times that amount, but top-earning CDs and high-yield savings accounts offer APYs in the mid-4% range, more than 11 times higher.

"The main drawback is that your money stops working for you," says Estrada. "I'm a strong advocate for high-yield savings accounts. They provide liquidity, typically a two-day transfer time, with no lock-up period, and currently offer around 4% annually, paid monthly. It's a smart way to keep your cash both flexible and productive."

The bottom line

CD rates are still substantially higher than those offered by standard savings accounts, but they have ticked down in recent months. So if your account is set to mature this July, take the opportunity to reevaluate your financial goals and strategize your next move. Don't let your CD auto-renew without confirming what the new rate will be as it could be much lower. And while shopping for the best CD rate is ideal, make sure the CD's term ends before you'll need access to your money.