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CBS News
4 hours ago
- Business
- CBS News
Missed your CD's maturity date? Do these 6 things now, experts say
While the economic environment has been shifting, certificate of deposit (CD) accounts continue to be a valuable savings option right now, one with a relatively high annual percentage yield (APY) in the current rate environment. Part of the draw, especially in today's changing interest rate environment, is that CD account interest rates are typically fixed throughout the CD term, meaning that they won't change, which can help you grow and protect your money. In turn, you can use CD accounts to help grow your funds over time. But the major drawback is that the money you deposit is typically inaccessible until the CD's maturity date — unless you want to pay for an early withdrawal fee to access it. And that can eat into the returns you earn with this type of account, so it's typically not the best route to take. So, savers who use CDs generally need to keep a close eye on their maturity dates to ensure that they're optimizing their returns. After maturity, they can allow the account to roll over, reallocate funds into another CD or savings vehicle or cash out for their intended purchase. If you're not keeping track, though, you run the risk of missing the CD maturity date, and your CD could renew without you realizing it. If that's happened to you, here's what banking and credit union experts say you should do once you have missed your CD maturity window. Compare your top CD account options and lock in a great rate today. A CD account can be a powerful tool to preserve your principal and earn more on your deposits. But if you miss the CD maturity date, it could be costly. "If you miss the maturity window, the CD would renew for a fixed period of time, which could cause issues if you need access to liquidity. If you do need to access your funds in the event of an emergency, you will most likely be charged a penalty fee," says Chris Keller, chief marketing officer at Empower Federal Credit Union. Not only that, but your CD could renew automatically at a lower rate or with less favorable terms, but there are steps you can take to try and remedy the issue, including the following: If you've missed your CD maturity date, you don't need to simply accept it. Start by taking action and assessing the situation. "The first thing they should do is contact their bank. Most CDs have a seven- to 10-day grace period, as soon as that maturity date hits, so if they just missed it, they're probably still within their grace period and can make adjustments to the CD," says Karin Cook, vice president of client deposit services with Merchants Bank. Explore the CD accounts available to you and start earning more now. The next step is to check if your financial institution has a grace period. If so, review how long it is to see if you're still within the window. "There are no fees or penalties when making changes during the grace period. However, not all financial institutions have grace periods," says Keller. And, it can still be worthwhile to check in with your banking institution, even if the grace period is over. "If you're outside of your grace period, still go ahead and reach out to your bank. Depending on your relationship with them, they may be willing to reduce the amount of the penalty that you have to pay to withdraw the funds, or waive it altogether," says Cook. Having a well-established relationship with the bank or credit union can make a difference in this situation. "I know from our experience that having a full relationship with the institution can make such a big difference. As a rate shopper, if all you have is that certificate, the institution may not be as likely to waive any penalties. Where, if you have a full relationship with the institution, that's a whole different scenario, because we don't want to lose you, and that long-term relationship that you have, and all the products and services that you use," says Carma Peters, president and CEO at Michigan Legacy Credit Union. If you missed the CD maturity window, your CD may have been automatically renewed already. If it has, be sure to check the new CD interest rate, the term length (so you know when the CD term ends) and verify the early withdrawal penalties tied to the account. That can help you decide whether to leave the money in the account or take action. If you're within the grace period and can make changes, compare CD rates at your financial institution and others. If you find something more competitive elsewhere, it's worth it to have a conversation with your current financial institution. "We have negotiated to match [rates] to keep funds in our institution," says Peters. After you've compared CD account rates and CD terms, you'll be more prepared to decide what's next. Your options include: Whether you're within your grace period or not, and how much your early withdrawal penalty is, may also impact your decision. If you've missed the CD maturity date and you're beyond your grace period, you may have to pay an early withdrawal penalty if you want to access your funds. To help avoid this issue in the future, create calendar reminders ahead of the current CD's maturity date to remind you. "Keep a spreadsheet with your CD maturity schedule and set calendar reminders to prevent you from forgetting the maturity date. Reach out to your financial institution ahead of time, so you can discuss your options before your funds are locked in at a new rate," says Keller. The next thing you want to do is review that your contact information is up-to-date. Check your email and address, as financial institutions use that information to send you important information about your CD account and other matters. "We do send out notifications prior as a reminder, so make sure you check the mail and read your emails from your financial institutions," says Peters. When your CD matures, you can finally access the funds you've put away. You can decide whether you want to renew your CD, reinvest in another CD term or product or withdraw the cash to use. It's important to keep track of when your CD matures, though, because if you don't take any action, your CD may renew automatically. That could mean being stuck with a CD term and certificate of deposit interest rates that you don't want. Or worse, they are less favorable in the existing environment, especially with the current CD rate predictions. Trying to remedy the issue after your grace period will likely mean an early withdrawal penalty, which cuts into your savings. So, make sure your contact information is current, you read your emails and mail from your financial institution and you set up calendar reminders for your CD maturity date to avoid costly delays.
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Bank of Montreal Announces Pre-Stabilisation for EUR 1 Billion Notes
Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Bank Of Montreal ( (TSE:BMO)) has issued an update. Bank of Montreal's London Branch has announced a pre-stabilisation notice for the issuance of EUR 1,000,000,000 Callable Fixed-to-Floating rate notes due January 2032. The stabilisation period is set to begin on July 2, 2025, and may last up to 30 days. The bank's stabilising manager may engage in market activities to support the securities' price, although such actions are not guaranteed. This move reflects the bank's strategic efforts to manage market conditions and investor expectations in the European financial markets. More about Bank Of Montreal Bank of Montreal is a major financial institution operating in the banking industry, providing a wide range of financial services and products. It focuses on serving both individual and corporate clients with offerings that include personal banking, commercial banking, wealth management, and investment services. Find detailed analytics on BMO stock on TipRanks' Stock Analysis page.
Zawya
06-05-2025
- Business
- Zawya
ADIB wins four awards at MEED's MENA Banking Excellence Awards 2025
Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has won four awards at the MEED MENA Banking Excellence Awards 2025. The bank has been recognised for MENA Islamic Retail Bank of the Year, Best SME Bank in the UAE, Excellence in Client Services and Best Fintech Collaboration. The recognition in these four esteemed categories underscores ADIB's relentless pursuit of excellence in Islamic finance, its industry-leading initiatives in innovation and responsible banking, and its unparalleled commitment to delivering exceptional retail banking services in the UAE. Commenting on the remarkable achievement, Mohamed Abdelbary, ADIB Group Chief Executive Officer, said, "We are honoured to receive these prestigious accolades, which are a testament to ADIB's commitment to innovation, excellence, and customer satisfaction. These accolades not only recognise our team's hard work and dedication but also reinforce our position as a leading financial institution in the MENA region.' ADIB is committed to leveraging technology and innovation to drive growth and profitability, with a focus on expanding its customer base and improving operational efficiency. The bank's Vision 2035 strategy positions us to navigate the evolving financial landscape and continue delivering exceptional value to our stakeholders. The MEED's MENA Banking Excellence Awards acknowledge performance and leadership in the banking industry across the Middle East and North Africa region. These awards provide validation and contribute to ADIB's market position, team recognition, and shareholder value. About ADIB ADIB is a leading bank in the UAE with AED 244 billion in assets. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX). ADIB has a strong presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Qatar, and Iraq. Named World's Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Emirates airlines, Etihad and Etisalat and a wide range of financing products.
