What to know about CD account rollovers now

Rolling over your CD is a decision that requires careful consideration, especially in the current rate environment. Athima Tongloom/Getty Images

Many savers who locked in high rates on certificate of deposit (CD) accounts over the last few years are now dealing with their CD accounts maturing in a very different rate environment. The once-common 5% CD yields have largely disappeared, replaced by offers closer to the mid-4% range. And with the Federal Reserve widely expected to continue trimming rates through the remainder of 2025, the rates on CDs could slide even lower in the months ahead.

That shift matters for account holders whose CDs are about to mature. Most banks automatically roll these accounts into a new term if no action is taken, potentially locking savers into today's lower rates by default. But understanding your rollover options — and taking action during the grace period when necessary — could mean the difference between keeping your money competitive or settling for less.

Before they do that, though, there are a few things savers with maturing CD accounts should consider. Here's what the experts say to consider before rolling over your CD into a new account, given today's shifting rate environment.

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What to know about CD account rollovers now

When your CD matures, the bank usually gives you a short grace period to decide how to handle the funds. When that grace period ends, most CDs will automatically roll into a new CD account with the same CD term, but at the bank's current rate as opposed to your prior rate. 

"Today's rates are actually good compared to the last several years when the Fed was using a zero interest rate policy, and rates were close to 0%. Historically, 4% is not bad for auto-renewing some of your money. If 4% was the worst rate in your portfolio, you could probably live with that," John PIershale, a wealth advisor and CEO at John PIershale Wealth Management, says.

But while a CD rollover may be convenient, and may even suit your financial goals, should you let the account roll over right now?

"If the rollover rate is attractive vis-à-vis other CDs in the market, then enjoy the convenience of letting your CD roll," says Shana Hennigan, chief business officer at Raisin, a savings marketplace. "You'll have continuity for your compounding interest. You avoid gaps where the money sits idle, and you lock in a rate right away," she says.

Rolling over your CD into a new account can also be a good option if you value simplicity and you won't need the money for other purposes. 

"You don't have to shop around or decide right away, and it keeps your savings locked in and growing without a break," says Bree Shellito, director of financial well-being at Ent Credit Union.

But just as rolling over a CD can work in some cases, it also carries risks. You might find a higher yield or a better purpose for the funds than locking them into a new CD.

"I would never default to rolling over a CD," says Kyle Harper, financial planner and founder at Harper Financial Planning. "An investor should always face the decision without past bias."

Hennigan recommends doing some homework so you can make a knowledgeable choice. 

"Different banks and credit unions often compete with promotional rates, and the spread between the best and worst offers can mean hundreds of dollars a year on a sizable deposit," Hennigan says.

Before your CD matures, it also makes sense not only to consider whether you should let your CD rollover, but also whether a CD account is the best option for your money at that time. 

"Too often, my older clients spend too much time trying to eke out an extra basis point in yield by comparing CDs when they should be asking if it is the right tool in the first place," says Harper.

For example, you might consider parking your maturing CD funds in a high-yield savings account. These deposit accounts typically offer competitive rates compared to CDs, without requiring you to lock in your money and deal with automatic renewals. It's important to note, though, that high-yield savings accounts have variable rates, so while rates on these accounts may be higher than normal right now, future rate cuts will almost certainly have an impact on your earnings potential. 

You could also use the funds for other goals, such as pursuing potentially higher returns in investments like Treasury bills or the stock market.

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The bottom line

While CD rates are lower overall compared to last year, they're still historically strong. Still, before letting your account roll over automatically, it's always a good idea to review your financial goals and make sure a new CD account makes sense for your overall plan. And, if you plan on keeping your funds in a CD, taking a few moments to compare your renewal rate against today's best CD rates may help you earn a higher return on your money.