Reinvesting a CD

Reinvesting a Certificate of Deposit

During the life of a certificate of deposit you should discuss with an officer of your bank what you want done with the funds in the account at maturity. If you fail to make provision for taking the cash or reinvesting it, depending on bank policy and the law in your state, one of several things may happen: the cash could be transferred to a passbook account paying lower interest; it could be held by the bank at no interest; it could be reinvested in a new CD for the same time period. Check over your certificates of deposit at regular intervals to remind yourself of their dates of maturity. It is a wise idea to keep a calendar noting their maturity dates a week in advance.