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What Happens When Your CD Matures On A Weekend/Holiday?

Hooked
  |     |   236 posts since 2019

I have never paid much attention to what happens if my CD matures on a weekend/holiday but here’s my experience with three such CDs this year:

Ally Bank: CD matured on a Saturday. Set up instructions for the CD to be closed upon maturity and for proceeds to be deposited into my Ally Savings. Funds deposited into Savings on the Saturday.

Bank5 Connect: CD matured on a Sunday. Sent message requesting that the CD be closed upon maturity and for proceeds to be deposited into my Bank5 Connect Checking. Money (only a little over $500) was in checking account on Monday morning.

All In CU: One of my Smart Start CDs matured today, Saturday. Sent message yesterday requesting that the CD be closed upon maturity and funds transferred to another existing Smart Start CD. CSR replied to say that this will occur next Monday because the CD matures on a Saturday. I assume there will be no interest earned this weekend but am not worried as the amount is de minimis.

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Ally6770
  |     |   4,290 posts since 2010
As a rule when I worked at the bank, but I retired several years ago transactions could be done on a Sat but they would not be dated until Monday. But if the deposit was done on a Friday while we were still on Fridays date you would get interest on that Sat and Sunday.
With the 401k when I worked depending on the market, I would transfer everything to the capitalization fund for the weekend. It paid the same as the 5 year CD and I would get a couple of days interest that way. Depending on the market Monday if I would get back in that day. We could trade every day in our plan so my trades were done between 3:45 and 3:55 on many days for the weekend when I traded. When we traded we bought at what the price was at that time.
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me1004
  |     |   1,379 posts since 2010
This has been a peeve for me for many years. In my opinion, if the CD is to mature on a weekend, and you can't get the money transferred to another account, a liquid account, with that FI that very day, then they should not be allwoed to set the maturity date for that day when they open it. When it matures, you are supposed to have access to it THEN, not a day or two later - or three if a holiday weekend.

C'mon, this is 2024, these things can be automated, and in most places are automated. There is no excuse to not have the TF done that same day even if they are closed.

The CD term should either be extended the day or two (or three) longer when first opened, and you get full interest for that, or cut a day shorter to that Friday. Or, just automate the transfer to be done even on a day when the FI is closed. Otherwise, the FI is taking the float, you are being cheated! If you had, say, $100,000 in a CD at 5.0%, that loss each day is about $13.70 of interest. Two days, $27.40. Three days, $41.10. Double that if you had $200,000 in it.

At least at most places, if you withdraw the money during the grade period, you do not get the CD rate that just matured, nor the CD rate you were rolled over to. Some will give you no interst for days they held the money during the grace period, others will give you the very low basic savings rate, which even with the Fed at 5.5% until this past Wednesday, most FIs kept their savings rates at 0.10%, or 0.25% or so -- basically nothing. It's a scam!
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Ally6770
  |     |   4,290 posts since 2010
At some of the institutions in the past they would pay the same interest until Monday or the next business day if it matured on a weekend or holiday.
When you call them to transfer it or do what you want with it at maturity they sometimes will offer you a better or matching rate from someplace else also. If a CD matures on a weekend or holiday in the past you could, when you opened it, extend the maturity until Monday. It is easy to look it up on the computer if it will mature on a weekend or holiday. Not sure how accommodating they are now.
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me1004
  |     |   1,379 posts since 2010
Oh, I have had almost all of the CSRs say you continue to get the same interest rate during the grade period. That is 100% false, just read the disclosures, and if you do stay that extra time, do the math to see if you really did get that rate or the rollover rate -- nope. You generally will get the basic savings account rate, or nothing at all at some. If it matures on the weekend, they reset it for the rollover rate. That weekend day.

Some places might be flexible when you open it to extend or shorten the day or two so it does not mature on the weekend. But I have found most are strict about their term, won't do that.
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NYCDoug
  |     |   334 posts since 2011
Tangentially related . . .

At GTE, even if you set a "Maturity Closeout" for your maturing certificate (via "Scheduled Transfers" — for which you have to call / chat with a CSR to arrange; it is not a customer accessible choice) — you still need to speak with a receptive rep to actually have the balance of your matured CD transferred over to your share savings account on its day of maturity.

Else, GTE's automated (antiquated?) "system" processes the pre-scheduled transfer of your final balance at the close of business on your CD”s maturity date — sometime in the evening, rather than the morning of maturity — effectively delaying access to your funds for another day (or three or four, depending on if it matures on a Friday, and if this Friday comes before a three-day holiday weekend).

Annoyingly, you will discover that the GTE "system" — your Maturity Closeout instructions notwithstanding —  has, contrary to your intention and expectations, already rolled over your CD into a new certificate of similar term!

Bottom line: You're guaranteed to lose at least one day of interest at GTE, unless you pro-actively reach out to them on the day — nay, the morning — of maturity . . .You snooze, you lose!

The good news is that, while GTE's "system" is patently customer-unfriendly, their CSR staffers are generally not.
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Ally6770
  |     |   4,290 posts since 2010
I haven't had one mature on the weekend in quite a while but the ones that did were local places where I could do in and cash it in or get a new one if rates were higher. If I open one out of town, I always talk to a customer service when I open it and when it is an IRA I speak with the IRA department. Now we can read disclosures. In the past we had to print them out and give them to the customer. I have done it with 3-4 CD's in the past by having them mature on a different date. But I always laddered and went out long term because in the past it was the prudent thing to do with the much higher rate. Ask to speak with a supervisor if they will not accommodate you or you can open a day or 2 earlier or later if they won't do it. Do your homework. Look it up before you make decisions. It is easy now with computers. Working in a bank I knew to ask before opening a CD what the policy was and if they didn't pay or wouldn't pay the high interest change the date, go someplace else or open it earlier or later by a couple of days. At the bank I worked at it really didn't make a difference because they paid the same interest for the 10 business days. Some would deliberately leave it for those 10 business days to get the higher interest if new rates were lower in town.
I had a calendar where I worked that went forward and back for several years because before computers I had to figure out the demand loans, for the businesses, commercial buildings, farmers and golf courses on a calculator and even when prime changed several times a day during the 80's. So it was very helpful.
With CD's people would come in the day of maturity if the new rates were higher. The old people were at the door many times when we unlocked the door. We had customers if rates changed a small % point would come in and cash their CD in, get the interest for a few day and then get the new rate that was higher. Even for 1/tenth of a point. That was before there were penalties for cashing early. It was very time consuming. Rates used to change every Monday. People that did that is the reason there are penalties now for cashing CD's in early.
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Ally6770
  |     |   4,290 posts since 2010
If your money is not in the account for that day it matures you will not get interest. If you take it out the following day and put it in another place even though the money is not there all day you will get interest for it. What you want is for 2 different places to pay you interest for the same day. It used to be done but because of what you are referring to the law has changed. When you open an account you get interest for that day even though the money is not there or even collected. You are not losing a days interest. If your bank or credit union changes dates and balances at 3-4or 5 and works on the next days date you can get it the same day where a person is working on the next days date. But not the same business date. In our branch years when I worked we were all balanced by 4:00 and some started to balance at 3:00. The messenger came at 4 to pick up all the checks etc and had to be into
our local corporate office 30 miles away to be ran through their computers and taken to the airport and had to be in Detroit by 7 so their computers could run the checks and pay the banks or take money out of the banks for the checks. They exchanged money on paper. Then the banks had to figure their totat deposits etc and keep a certain % of cash and not use it to invest or give it out for loans the next day. Banks used to have to have 3 copies of everything stored in different places in case of fire, floods, or storms. Now with computers things changed and with the faster they get the less time it takes to do this stuff.
If I write a check to the bank for a CD that bank will not get the funds immediately but I will get paid the interest immediately. It could be called as different kind of kiting. Getting interest for the same funds at more at one place. Perhaps one day we will not get the interest the day we open a CD with a check but on the day the bank gets credit and when they actually get the funds.
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Hooked
  |     |   236 posts since 2019
An update on the All In CU Smart CD which matured on Saturday: My account shows that the matured funds, including a few dollars of additional interest, was credited to my second Smart CD today, Monday. By my calculation, the additional interest was two days on a current Smart CD @ 4.07% APY, which was what my expired CD would have renewed into had I not transferred to another 5.75% APY Smart CD.

Overall, I am very happy with All In CU.
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MY2CENTSWORTH
  |     |   436 posts since 2016
Great info Hooked...thank you for posting your experience.
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Hooked
  |     |   236 posts since 2019
Adding my recent experience with CFG Bank: CD matured on a Saturday. Sent email a few days prior requesting that the CD be closed upon maturity and for proceeds to be deposited into my CFG MM account. Received response that my request would be forwarded to customers service for handling. Did not see any CD closure by mid-day Monday although two days of interest (based on new CD rate for same term had I renewed) was added to the CD total. Called bank regarding CD closure and funds appeared in my MM account about two hours later. No complaints even though I did have to follow up.
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Hooked
  |     |   236 posts since 2019
Adding my experience on a matured ConneXus Credit Union CD today, Sunday:

Two days ago - sent message for CD to be closed upon maturity and have proceeds transferred to Xtraordinary Checking.

Today, Sunday morning - CD closed and balance deposited into Xtraordinary Checking.

I was planning to check on Monday but was pleasantly surprised that this was already completed on a Sunday. Now the money will start earning 5% (up to $25k max) in the checking account.
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racecar
  |     |   616 posts since 2014
Keep in mind:
Yes, if a CD matures on a weekend (esp a holiday weekend) it means you don't have access to your funds or perhaps don't earn the same interest for a couple days -- but when you look at the big picture it makes no difference in the end.

Say you finally have your funds all ready to go today, and you're ready to open a CD today (Wed) -- but if you do, it'll mature on a Saturday. So instead you decide to wait 2 days, and open it on Friday instead (to get a Monday maturity date instead of a Saturday). But you actually haven't gained anything -- you still lost the same 2 days of interest by "waiting" to open the CD. You just moved the "lost days" from the end to the beginning instead.

I've had plenty of CDs mature on a weekend (and a holiday weekend coming up too). Not having the funds "available" may feel like a pain, but nothing happens on the weekend/holiday anyway, and if you delay opening it to try to get a Monday maturity, all you'd do is move the "dead days" to the beginning. You'd gain nothing, and still wouldn't be able to move the funds any sooner at maturity. (One would assume if you had your funds ready to go earlier, you would've opened the CD earlier).
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RickMT
  |     |   3 posts since 2025
"Say you finally have your funds all ready to go today, and you're ready to open a CD today (Wed) -- but if you do, it'll mature on a Saturday. So instead you decide to wait 2 days, and open it on Friday instead (to get a Monday maturity date instead of a Saturday). But you actually haven't gained anything -- you still lost the same 2 days of interest by "waiting" to open the CD. You just moved the "lost days" from the end to the beginning instead."

This is a flawed analysis because it assumes that the rate on the CD that is opened is higher than the rate the funds are currently earning. But especially in the current rate environment that is not necessarily so since short term liquid rates are currently often higher than longer term CD rates.

You may well be buying a CD with a lower rate than the funds are currently earning which means that you would earn more on the front end in a case like this, by waiting, instead of giving earnings up on the front end.  And if you don't try to avoid the additional opportunity loss on the back end at maturity, you may end up losing on both ends.

Every case is different. You cannot make simple assumptions like this that cover every scenario. But what you can say is that you should plan carefully when you invest whether a CD or any other investment. In fact the timing DOES make a difference.
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Mark11
  |     |   2 posts since 2025
I don't remember who it was, one credit union or more than one but I've had CDs mature on a Saturday and the funds were released on the day before, Friday.... think it was Navy but not sure.

Either way 2 days if it happens to fall on a Saturday, one day if it falls on a Sunday and you can't get your money until Monday, doesn't seem like a big deal, much ado about nothing imo. All your CDs are not going to mature on a weekend and like I said, basically a rounding error.... it's like worrying about what a Taco Bell lunch box costs, not important.

Just part of the cost of buying CDs, especially when they're not local, wire fees is another part people don't think about.
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