Core Insights - The article emphasizes the importance of taking action when a certificate of deposit (CD) is nearing its maturity date to avoid automatic rollovers that can lead to lower interest rates and longer commitment periods [2][3][4][5]. Group 1: Risks of Automatic Rollovers - Automatic rollovers can limit choices and often result in subpar returns, as banks typically offer only one rollover CD with a lower interest rate [3]. - A rollover CD effectively doubles the commitment period, which may not align with financial goals, and early withdrawal penalties can apply if funds are needed before the term ends [4]. Group 2: Strategic Steps Before Maturity - Step 1: Consider whether to open a new CD or keep funds flexible; high-yield savings accounts currently offer up to 5.00% APY, providing better accessibility [6][7]. - Step 2: Compare rollover offers with today's best CDs to ensure the best rate and flexibility; missing the deadline for decision-making can lock funds into a low-rate CD for an extended period [10][11]. - Step 3: Follow instructions from the bank to avoid automatic renewal; transferring funds to a savings account can maintain flexibility [13][14]. - Step 4: Plan ahead to maximize returns by locking in the best rates available before expected interest rate declines [16][17]. Group 3: Market Outlook - The Federal Reserve is anticipated to cut interest rates, with a 70% chance of at least a half percentage point reduction by the end of 2026, which may affect savings account rates [9].