Ready to renew your CD?

With CD rates near all-time lows, there are plenty of smart savers wondering if renewal is right for them. If you invested in a CD five years ago, chances are today’s rates are significantly lower than when you opened your new certificate of deposit. Many banks will automatically renew your CD unless you tell them otherwise. That’s why it’s more important than ever to put that renewal date on your calendar.

If that date is approaching, here are few key points to consider.

Are your savings goals the same?

As you decide whether or not to keep your cash invested in a CD, be sure to think about why you invested in one in the first place. Was it for retirement? Was it simply because you wanted to avoid the volatility of the stock market? Understanding your objective will help you determine if renewal is the right move. For example, if you’re looking to accelerate your savings rate to retire earlier, you’re not going to find much luck with today’s CD rates.

What are other banks offering?

If you have a CD at a traditional brick-and-mortar bank with branches and ATMs around the country, be sure to look at online banks. With lower overhead costs, these Internet-only institutions typically offer the most competitive CD rates on the market. Ally, Discover and American Express all offer some of the top rates available today.

Can you press pause on your CD investing?

Because of the dismal market for earning interest, you may want to consider playing the waiting game: putting your CD investments on hold until interest rates finally rise. There are online savings accounts that earn comparable interest while not locking you in for an extended period of time.

What do you think? Would you renew your CD now, or are interest rates too low?