Strategic moves for CD maturities in 2026: Exploring opportunities beyond traditional CDs
Managing Director, Head of Wealth Management Banking & Liquidity
If you opened a certificate of deposit (CD) in 2023 or early 2024, you may have benefited from elevated interest rates. However, by 2025, the financial landscape had changed due to Federal Reserve rate cuts, resulting in lower savings and CD rates. As your CDs mature in 2026, it's important to review the details of your CD rollover, identify how these funds are to be used in the near or long term, and consider other options for enhanced yield beyond CDs. In this discussion, we will explore key strategies that may expand your investment opportunities.
CD renewal options
When your CD matures, you have a brief grace period to decide your next steps. Your first step is to review the rate and term offered by your bank if funds were to automatically roll over. If you are satisfied with those terms, you may leave your money untouched. If you are looking for something with enhanced yield beyond what the rollover rate may offer, consider:
- If you don’t have immediate or near-term use for the funds, consider renewing with a longer-term CD, as longer-dated CDs often yield more than shorter-dated ones.
- If you need periodic access to funds, try CD laddering by splitting funds across CDs with varying maturities, balancing returns and liquidity.
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Consult with a financial advisor
If you're looking beyond CDs, J.P. Morgan advisors can help. Advisors work alongside your banker to understand your financial goals and also help assess your risk tolerance. This helps ensure that any strategies shared with you are suitable for your evolving financial needs and both your near- and long-term objectives. To get started, connect with your banker to set up an appointment.
For near-term financial goals, consider investing in high-yield savings accounts or money market funds
If you anticipate needing access to your funds soon, consider a high-yield savings account or adding a money market fund to your investment account. High-yield savings accounts offer competitive interest rates and FDIC insurance up to applicable limits. Money market funds invest in short-term, high-quality debt securities, balancing interest with liquidity and offering better returns than traditional savings accounts. Both options provide daily or next-day liquidity, making them suitable options to place your cash earmarked for near-term cash needs.
Solutions for longer-term financial goals
If you are interested in incorporating solutions into your long-term wealth plan, there are a variety of solutions that offer the potential for higher yield or return over time than CDs. These range from short-term fixed income portfolios that typically offer a yield pickup versus cash, long-term fixed income portfolios that may allow clients to lock in today’s higher yields for a longer period of time or multi-asset portfolios that combine the growth potential of equities with high-quality, longer-term fixed income.
The bottom line
Not every strategy suits every saver, but in the current interest rate climate, exploring your options is crucial to securing returns that meet your goals. As your CD maturity date approaches, consider these ideas and, if appropriate, consult with a J.P. Morgan advisor. They can help you navigate these options and explore ideas that align with your financial goals, helping you maximize your investments with our trusted expertise and resources.
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