Mar
12
Cd rates when you open a cd once it matures does the rate say the same?
March 12th, 2010 posted by
admin
I opened up a cd 9 months ago it matures today just wondering if I don’t take it out and just leave it in, do I still get the same rate I had when I first put it in??? Little confused about that I always thought if you just leave it, the cd rate would be the same. Don’t want to change my rate seeing how I looked around and cd rates are low, and when my money matures my annual rate is 5.12%
takuwan_199 says:
March 15th, 2010 at 8:18 am
That depends on the product you purchase but most likely will change if you reinvest. CDs will vary between institution and particular product. The rate set (5.12%) is the rate the bank is willing to pay you at the time of the signing and lasts until maturity. Since then, interest rate environments change so the average rate the bank pays depositors may change. Leaving your money in a CD after maturity isn’t actually leaving your money in the CD, but is (usually) investing in a brand new CD with the money from the matured CD. Best thing to ask your bank or financial institution about your particular CD. Most likely, that rate is not guaranteed after maturity.
If you want to get a better rate, compare shop with other institutions or ask your institution if they are willing to negotiate a better interest rate.