CD Maturing Soon? Time to Rethink Your Next Move!

If you opened a certificate of deposit (CD) back in late 2022, 2023, or even 2024, congratulations — you probably scored yourself a pretty sweet interest rate. At that time, rates were climbing out of the basement they’d been stuck in for years, actually offering a decent buffer against inflation and rising borrowing costs. But 2025 is just around the corner, and the economic weather has changed (again). That means the fabulous interest rate you locked in might not look so hot when your CD matures in the next few weeks or months.

Before your funds automatically roll over into another ho-hum account with lackluster returns, you’ll want to be proactive. Thankfully, you’re not short on options. Below, we’ll break down three tried-and-true alternatives — plus one more “outside the box” choice that’s worth considering if you’re thinking beyond the usual bank accounts.

Where to Move Your Money After Your CD Matures

1. Long-Term CDs

If you liked the certainty of your old CD, you can stick to the same game plan with a long-term CD (think 18 months or longer). While you may not get those sky-high “peak pandemic” rates, you can still nab something around 4.50% and lock it in for several years. The upside? You’re shielded from whatever interest rate rollercoaster lies ahead. The downside? You need to be sure you won’t need those funds before the term’s up, or you could face an early withdrawal penalty. Still, if you’re looking for reliability and can stash that money away, this is a stable bet.

2. High-Yield Savings Accounts

Want something simpler? High-yield savings accounts — especially from online banks — can sometimes beat even the better CD rates. They’re flexible, which means no penalties for early withdrawals, and they often pay higher interest than the brick-and-mortar savings account your grandparents used. The catch? These rates aren’t fixed. They can drop if the broader market changes. Still, if you’re into liquidity and adaptability, a high-yield savings account might be your new best friend.

3. Money Market Accounts (MMAs)

If you’re trying to have your cake and eat it too (savings plus some checking-like privileges), consider a money market account. It’s similar to a high-yield savings account but often lets you write checks and pay bills. That’s convenient if you want a bit more utility without sacrificing a decent interest rate. Just remember that some MMAs require a higher minimum balance to maintain those sweet rates. If you’re already used to not touching your CD funds, though, this shouldn’t be a problem.

4. Consider an Indexed Universal Life (IUL) Policy

Feeling adventurous and looking beyond the usual bank-offered suspects? Here’s an option often overlooked: an indexed universal life (IUL) insurance policy. This isn’t a savings account, but a life insurance product that also allows you to build cash value tied to a market index (like the S&P 500), with a crucial advantage — there’s a zero-percent floor. Translation: When the market goes belly-up, your returns won’t dip below zero. You won’t hit the same highs you might with a more aggressive IRA or pure stock investment, but you’ll rest easy knowing your principal is protected. In a volatile market, an IUL can serve as a snug financial safety blanket: no huge gains, but no heart-wrenching losses, either.

The Bottom Line

The big takeaway here is that you shouldn’t just let your CD funds roll over into a less attractive rate without a plan. Whether you go the tried-and-true route of a long-term CD, the flexibility of a high-yield savings account, the balanced convenience of a money market account, or the steady, safety-first approach of an indexed universal life policy, your money doesn’t have to just sit there shrugging its shoulders at the changing financial climate.

But don’t drag your feet. Once your CD matures, the clock is ticking. You’ll have a short grace period to make a move before your funds get locked into something you never asked for. So do your research, pick the option that fits your financial personality, and step into 2025 with a smarter, steadier plan for your hard-earned cash. YES we can help, reach out to us and we can connect you with an actual professional that is an expert in this!