4 Things You’ll Regret Doing When Your CD Matures

Your certificate of deposit is a smart and virtually risk-free way to grow your money . But what you do after it matures could mean the difference between maximizing your savings and squandering any interest you earned while your money was locked into the certificate.

Explore More: How To Make Passive Income Just By Moving Money In These Ways

Find Out: 7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy

T he following actions are likely to lead to regret later.

Be Aware: How Much Does the Average Middle-Class Person Have in Savings?

Using the money for something other than paying off debt : Debt burns a hole in your wallet and can prevent you from growing your wealth. Using the money that was previously held in your CD to take care of your debt could return 20% or more on your investment in the case of high-interest credit card debt.

Letting the funds automatically roll into another CD : Taking decisive financial action after your CD matures is crucial. You’ll want to make the best use of your funds, whether that means rolling it over, reinvesting in another asset that pays you more interest or putting the money toward a long-term goal such as saving for a home down payment.

Keeping all your investment dollars in one basket : CDs are a great way to grow your money, but they’re not the only way. Review your financial situation before your CD matures so you can decide what to do with your money. For example, stocks historically pay higher returns over the long term compared with CD interest rates. Also, diversifying your investments is important to protect yourself from market swings and economic instability.

Depositing the money into a low-yield savings account : If you move your money into a savings account that pays a lower interest rate, you could miss out on some free money. Opt for a high-yield savings account instead. The rates rival those of high-yielding CD accounts , and you can access your money instantly.

This article originally appeared on GOBankingRates.com : 4 Things You’ll Regret Doing When Your CD Matures