Financial Advice Q&A

New Member
Posts: 1
If I renew my CD, do I get the same rate?
[ Edited ]

My CD will mature soon. If I choose the continue selection for when it matures will it keep the same interest rate and hold the money already in it for another 7 years?

Posted: 2013-12-10 04:19 PM
Other Answers: 1
Community Manager
Posts: 1,009

Unfortunately no – renewing your CD will not allow you to continue earning the rate you have been getting for the past 7 years. Your renewal rate will be whatever 7-year CDs are currently paying and sadly, that’s not much in our currently anemic interest rate environment. Today’s 7-year CDs are paying somewhere around a whopping 1%. 


This then begs the question, what exactly should you do with this money?


One size doesn’t fit all
If your goal is to maintain the safety and security of CDs, and you’re ok earning very low rates, then going with another CD might be the right answer. I’d need more information about your situation before I could say for sure. However, even if CDs are the right answer for you, I’d urge you to do some serious thinking before you lock in at today’s rates for the next 7 years.  It may make more sense to sacrifice some yield and go with a shorter maturity so that if interest rates begin to rise, you might not miss out on them for so long. Again though, I’d need more information before I could definitively guide you one way or the other on this.


Other ideas
For some other ideas on what to do with this money, I encourage you to check out this answer I recently provided to another member with a similar question. In it I describe some of the pros and cons of taking a riskier approach in order to try to earn more.  I also suggest to him the same final step I’ll recommend to you and that’s contacting our team of Financial Advisors here at USAA. They can be reached at 800-771-9960 and will be able to gather the additional information from you that will be necessary to give you concrete recommendations.


Thanks so much for your question.  I hope this helps and I wish you all the best!



Posted: 2013-12-11 10:27 AM


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