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Interest rates are going to remain on hold a bit longer. That was the big takeaway on Wednesday after the Federal Reserve announced a continued pause in its interest rate cut campaign. After issuing three cuts in the final months of 2024, the central bank has left its benchmark rate frozen at a range between 4.25% to 4.50%, with the next hope for a cut coming when the bank meets again in mid-September. While this was undoubtedly frustrating news for the millions of American borrowers contending with higher rates, it extends an opportunity for savers, especially those with certificates of deposit (CD) accounts.
Interest rates on CDs remain comfortably over 4% currently and, now, with rates on hold, they’re likely to remain in that range for the foreseeable future. But what if you currently have a CD account that’s approaching its maturity date? Should you renew a maturing CD account with interest rates paused? Or are you better off shifting your savings strategies? Below, we’ll detail what to consider before taking the next steps.
Start by seeing how much money you could be earning with a new CD here.
Should you renew a maturing CD account with interest rates paused?
In a low-rate climate, such as the one borrowers experienced at the start of the decade, renewing a maturing CD account, even if rates are paused, doesn’t make sense. In these circumstances, savers are often better served by shopping around for alternative ways to grow their savings, even if it may require riskier options like stocks. However, the interest rate climate of August 2025, while not the same as last summer, is far different from what it was in August 2020, too.
Savers can still secure a CD rate over 4% right now, and with rates on pause and banks and lending institutions in a holding pattern until September, there’s time to shop around to find accounts with high rates and attractive terms. Some savers may even want to explore long-term CDs, which have maturity dates longer than one year, with a goal of locking today’s high rates for an extended period (and, thus, growing their money as much and for as long as possible).
There’s an argument to be made that renewing a maturing a CD when high interest rates are on pause is actually an ideal time to do so. That’s because banks can, and often will, reduce rates ahead of any predicted formal Fed rate-cutting action. But with that unlikely to happen in the weeks ahead, savers don’t have to move as rapidly as they otherwise may.
Still, if your CD is set to mature soon, be prepared to act now. Most banks will provide a limited grace period in which you can take action before the CD is automatically rolled over into a new account, potentially one with a much lower rate. To avoid that happening, contact the bank that holds your CD account now to let them know about your intended next steps. With rates on pause and plenty of high-rate options available with online banks, you’ll want to effectively utilize this opportunity while it’s still available. Don’t let it renew unless the rates and terms match the elevated ones you can find on your own.
Compare your current CD account offers here to see which makes sense next.
The bottom line
A continued Fed rate pause may not be the news many Americans were hoping for this week, but savvy savers can still use it to their advantage, especially if they have a CD account approaching a maturity date before the central bank meets again this September. It wasn’t that long ago that CD rates were barely over 1% and, inevitably, rate cuts will be issued again. So, consider renewing a maturing CD account now as it may not be worth doing the next time your maturity date appears on the calendar.
