How to Rollover Investment CDs

Almost every investment portfolio should be comprising of CDs i.e certificates of deposits .  While they don’t offer the most exciting returns, but they tend to lock in gains at a lower percentage so that even in the worst markets you are somewhat isolated from a correction.

Create a file for your investment CDs.

The terms of CD range from a few months to more than 10 years, it’s easy to forget which CDs are maturing when. Therefore it is important to create a folder in which you place all of your CD investment material. That way it is easily accessible.

Use a calendar.

Life is so hectic in today’s day and age, it’s best to use a calendar for all aspects of our lives. Especially financial. Mark down important dates as soon as they come to your attention. Computers now come with calendars as well. So don’t worry if the CD matures 5 years in the future. Set an alert. Your computer will remind you.

Keep your address information current.

Banks are required by law to send you a notice in writing 1 month before the CD matures. But if they have the wrong address, then the notice may never reach you. Most banks will automatically lock in the CD for the same term. But you have to watch out because the rate may be unfavorable as market conditions have changed.

Determine your investment goals.

Now that your CD is about to mature, you have to ask yourself what you would like to do with it. You can reinvest in another CD, place it in a mutual fund, stocks, money market, bonds or just cash it out. The important thing is that you decide what is best for you based on your objectives. Younger people should be more aggressive in their investments as they have time to make money up from a market correction, while older people and especially retired people should seek the safe haven of CDs since they are a secure investment.

Take action to rollover your investment CDs.

Located on the notice from the bank will be their contact information. That information can also be found on the certificate of deposit itself. Contact the bank and discuss which investment you’d like to roll your CD into. If you are placing it back in a CD, be sure to check the rates, as they can change daily. Some banks will allow you to tell them verbally what you’d like to do with the money, while others require a written letter. Be sure to ask their policy and create and send the document right away if needed.

Follow-up with the bank.

No one is going to watch your money like you. Therefore if you do not receive a confirmation either by email or written mail within a week, be sure to call back and check on the status of your CD investment rollover.