Don't Neglect Your Maturing CDs - It Could Cost You

If you keep money in CDs (Certificate of Deposits) at the bank, you want to make sure that you keep tabs on when they mature. Generally, your bank or credit union will send you a letter alerting you to the renewal, but you need to use this notification as a time to act. With falling interest rates, your new CD rates will be going down as well, and if you just let your CD automatically renew when it matures, you're going to lock yourself into a lower rate.

There are a few steps you can take to prevent this from happening. First, shop around before the maturity date comes up. Check with other banks in your neighborhood and see if they are offering better rates. Even a half of a percentage point can add up. Not only should you shop around for better rates, but you should check to see if your bank, or other banks are offering specials. Many banks offer special rates for new deposits, or other relationship prices that can be higher than what is generally advertised.

So, before your CD matures and you find yourself stuck for another year or two at a lower rate, make sure you shop around and try to find specials. This can help you earn even more interest in this low interest rate environment. If you find that CD rates just aren't that attractive, you may want to consider other savings alternatives as well.