When to Reinvest After CD Maturity
When a CD or savings account matures, you face a choice: reinvest immediately at the current rate, or park the funds temporarily in a high-yield savings account while waiting for rates to improve. This calculator compares the total interest earned under both strategies.
Frequently Asked Questions
What is a parking account?
A high-yield savings account or money market account where you temporarily hold funds. It earns daily interest while you wait for better CD rates.
Does this include taxes?
All figures are pre-tax. CD interest is generally taxable in the year it accrues. Consult a tax advisor for your specific situation.
What if rates fall instead of rising?
Try entering a lower expected rate in Scenario B to see how much Scenario A outperforms. This helps you evaluate downside risk.