My Certificate is Maturing, Now What?
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By Members 1st Federal Credit Union
A certificate can be an excellent tool for building your savings, but what happens when it’s about to mature? For many, this is an opportunity to reevaluate financial goals and decide the best course of action. Whether you are looking to reinvest, access your funds or explore other options, understanding what’s next is the key to making the most of your hard-earned money.
When your certificate approaches its maturity date, whether it is with Members 1st or another financial institution, you may find yourself asking, “what are my options?” Perhaps you are saving for a specific goal, building an emergency fund or planning for the future. Whatever the case may be, deciding what to do next can make a big impact on your financial journey. Here is a guide to help you understand your options and make the most of your maturing certificate.
Stay Informed About Your Maturing Certificate
At Members 1st, we keep you in the loop as your certificate approaches maturity. Members receive advance notifications, so that you will know exactly when it is time to act. Additionally, our branches and Customer Service teams proactively contact members with reminders. Through online banking, you can easily select what you’d like your certificate to roll over into within 30 days of its maturity. This user-friendly feature allows you to make decisions from the comfort of your home, giving you 24/7 access to managing your finances.
- Reinvest in a New Certificate
One of the most popular options is to roll over your funds into a new certificate. This allows you to continue earning a competitive, fixed rate of return while keeping your money safe. Members 1st offers a variety of certificate terms, so you can choose the one that best fits your savings goals.
Pro tip: If you are unsure about committing to a long-term certificate, consider a shorter-term option or a certificate laddering strategy to maintain flexibility.
- Transfer Funds to a Savings or Checking Account
If you need immediate access to your money or want to use it for other financial goals, you can transfer the funds to your savings or checking account. This option provides liquidity and allows you to use your money as needed without penalty.
- Explore Higher-Yield Options
Looking to maximize your returns? Consider exploring higher-yield savings options, such as a Money Market Account or a High-Yield Savings Account. These accounts offer competitive rates while providing easier access to your funds compared to a certificate.
- Invest Your Funds
If you are comfortable taking on more risk for the potential of higher returns, you might explore investment opportunities. Financial Advisors at Members 1st Investment and Wealth Management Services can help you develop a personalized investment strategy that aligns with your goals.
- Pay Down Debt
Another smart option is to use your certificate’s matured funds to pay down high-interest debt. Reducing your debt can save you money on interest payments and improve your overall financial health.
- Save for a Specific Goal
Is there something big on your horizon, like buying a home, starting a business or funding a vacation? Using your certificate funds to jump-start your savings for a specific goal can keep you motivated and on track.
Don’t Miss Your Maturity Date!
When your certificate reaches maturity, you will typically have a grace period to decide what to do next. If you take no action, your funds may automatically roll over into a new certificate with the same term. While this may work for some, it’s always a good idea to review your options and ensure they align with your financial goals.
Need Help Deciding?
Our team at Members 1st is here to guide you through your options when your certificate reaches maturity. Whether you prefer a conversation with one of our local associates or a visit to one of our 60 branch locations, we’re happy to assist. Once you’ve made your decision, we’ll save your preferences to ensure a smooth and stress-free transition.
Opening a Certificate with Members 1st
Certificates are a great way to help you meet your financial goals more easily, whether you're saving for a major milestone or building an emergency fund. With flexible terms, competitive dividend rates and strategies like certificate laddering, you can maximize your savings while maintaining access to funds. Explore our certificate options, including our Goal Savings accounts, and let us help you take the next step toward financial success.
