Approximately one month before your CD matures, you'll be sent a notice reminding you of the maturity date. At maturity, you'll have a seven-calendar-day grace period to renew or make any of the following changes:
When deciding whether to put money into a certificate of deposit (CD), consider what happens after the CD matures. Certificates of deposit are time deposits that come in specific terms, such as six months or five years. You get a guaranteed, fixed interest rate so long as you hold the CD and leave the money untouched.
As the owner of a CD, you are responsible for knowing its maturity date. Mark it on your calendar, set reminders, or do whatever you need to remember this date so you can adjust your plans accordingly. Check with your bank or credit union if you have questions about the maturity date of your CD. The institution will send you a notice before your CD matures.
If you like the safety and stability of this savings vehicle and are satisfied with the APYs, another option after your CD matures is to put more money into CDs by building a CD ladder. This allows you to capitalize on interest rate changes, avoid early withdrawal penalties and save for different financial goals.
One thing to be aware of is that your lender may charge you a fee if you pay off your loan before its maturity date. Sometimes lenders charge a fee called a prepayment penalty for early repayment because they miss out on interest if you pay in full before the loan matures. Make sure to read your loan agreement first so you can plan for this penalty if need be.
With a traditional CD, you invest a set amount of money for a period of time with a bank or credit union and get access to the initial deposit plus interest earned when the CD matures. For example, if you deposit $15,000 into a two-year CD at 0.90% APY (annual percentage yield), you would get $15,271.21 when it matures.
CDs can be a safe way to stash money you need in the short term because interest is typically fixed and guaranteed when the CD matures. With an FDIC-insured CD account, up to $250,000 of your money is also protected in case the bank folds.
When a bond matures, you get the bond's face value or "par" value, which is the principal you let the bond issuer borrow. One difference between traditional CDs and bonds is that you may receive interest payments before the bond matures. Typically, this happens twice per year. So if you put $5,000 into a bond, you'll get $5,000 back when it matures, along with semiannual interest payments, which you could pocket or reinvest. This is why some investors use bonds for a regular source of income.
But the bond's yield to maturity in this case is higher. It considers that you can achieve compounding interest by reinvesting the $1,200 you receive each year. It also considers that when the bond matures, you will receive $20,000, which is $2,000 more than what you paid.
Once a JISA matures, you can choose what to do with the money in the account. There are a few options available to you, and as the account holder what you decide to do with your JISA is fully up to you. 041b061a72