When a CD reaches its maturity date, your bank may give you a short grace period to withdraw or move the money without a penalty. If you do nothing, an automatically renewing CD rolls into a new CD at the rate the bank offers then, which may differ from your current rate. For automatically renewing CDs longer than one month, federal rules require the bank to send a notice at least 30 days before maturity, or at least 20 days before the end of a grace period of five days or more.
What is a CD’s grace period?
A grace period is a short window after a CD matures when you can withdraw the money without paying an early-withdrawal penalty. Banks don’t have to offer one, but they must tell you in the CD’s account disclosures whether they do and how long it lasts, along with how renewal works (Regulation DD).
What happens if I do nothing?
Check whether your CD renews automatically at maturity (FDIC). If it does and you don’t act, the money stays in a new CD at the rate the bank sets then, which isn’t guaranteed to match your current rate (CFPB). Taking the money out after the grace period usually means an early-withdrawal penalty (CFPB).
What notice must my bank send?
| Kind of CD | Notice required |
|---|---|
| Renews automatically, term longer than one month | At least 30 calendar days before maturity, or at least 20 calendar days before the end of a grace period of five days or more |
| Doesn’t renew, term longer than one year | At least 10 calendar days before maturity, with the maturity date and whether interest continues after it |
These rules come from Regulation DD, the Truth in Savings rule (12 CFR 1030.5). The notice for a longer CD includes its new terms, or, if the new rate isn’t set yet, the date it will be and a phone number to call.
What should I check before the grace period ends?
- The maturity date and the last day of the grace period.
- Whether the CD renews automatically, and for what term.
- The new rate and annual percentage yield, if the bank has set them.
- The early-withdrawal penalty on the renewed CD.
- Where the money would go instead, if you don’t renew.
Is a renewed CD still insured?
Yes, a CD at an FDIC-insured bank is a deposit, insured up to $250,000 per depositor, per bank, per ownership category, together with your other deposits in that category (FDIC). The limit includes interest that has built up (FDIC).
What about CDs bought through a brokerage?
Brokered CDs generally don’t have early-withdrawal penalties like CDs bought directly from a bank. To get money out before maturity you sell the CD, and you may lose some of what you put in if its market price has fallen (SEC investor bulletin).
How can I keep track of maturity dates?
Write each CD’s maturity date next to the account in your records, and put a reminder on your calendar a few weeks before it. Steady Ledger’s Money Map lists CDs and Treasury bills maturing in the next 90 days.
Common questions
What happens if I don’t do anything when my CD matures?
If the CD renews automatically, it rolls into a new CD at the rate the bank sets then, which may differ from your current rate. After any grace period, taking the money out usually costs an early-withdrawal penalty.
How long is a CD grace period?
It depends on the bank, and banks don’t have to offer one. The CD’s account disclosures must say whether there is a grace period and how long it lasts.
Does my bank have to tell me before my CD renews?
Yes. For an automatically renewing CD longer than one month, the bank must send a notice at least 30 calendar days before maturity, or at least 20 calendar days before the end of a grace period of five days or more.
Is a renewed CD FDIC insured?
Yes, up to $250,000 per depositor, per bank, per ownership category, together with your other deposits in that category at the same bank.
Sources
Each source was checked on October 8, 2026. Rules and limits can change; when it matters, check the source.
- eCFR: 12 CFR 1030.5, Subsequent disclosures (Regulation DD), updated October 7, 2026
- eCFR: 12 CFR 1030.2 and Appendix A (Regulation DD, Truth in Savings), updated October 6, 2026
- FDIC: FDIC Consumer News, November 2023 (CDs), updated November 3, 2023
- Consumer Financial Protection Bureau: What is a certificate of deposit (CD) rollover or renewal?, updated August 30, 2024
- Consumer Financial Protection Bureau: What is a certificate of deposit (CD)?, updated August 28, 2026
- FINRA: Bank Products
- FDIC: Understanding Deposit Insurance, updated April 1, 2024
- SEC Office of Investor Education: Brokered CDs – Investor Bulletin, updated November 30, 2023
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