May 15, 2026
Certificates of deposit (CDs) can be a great investment because they're FDIC-insured and have limited risk. While you lock up your money and typically face penalties for early withdrawal, you also get a guaranteed rate of return. Once your CD matures, though, you'll have to decide what to do, and you need to take action quickly, as you may have a limited grace period before action is taken for you.
If you don't let the bank know your preferred option, the money from the maturing CD may automatically renew into a new CD at current interest rates (which could be higher or lower than your existing rate), or it could sit in an account with or without interest, or come to you in the form of a check. It all depends on your bank's policies.
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Let's take Joe for example — recently his $300K CD matured all at once.That's a lot of money. Joe is 45 and too far away from the time he'll need to begin making a serious effort to get ready for retirement, so he's wondering what to do next.
Well, this all depends on Joe's personal situation, including what other assets he has and what his timeline is for when he'll need the invested funds. While Joe might be a fictional person, here are a few options he (or anyone in this situation) could consider.
Make sure you've done the basics
The first thing to think about when deciding what to do with your CD proceeds is to make sure you have the basics taken care of.
You'll want to make sure you have a fully-funded emergency fund that is accessible in a high-yield savings account. That should include three to six months of living expenses.
If you don't have savings for emergency expenses, you should put at least some of that $300K aside for a rainy day. While you may want to take on more risk, you shouldn't if you aren't prepared for emergencies.
You don't want to put your $300K into an investment where you face a risk of temporary losses caused by a downturn, then have to sell at a loss because of unexpected expenses.
Just be careful if you're depositing money into a bank account, even temporarily, as the FDIC insurance limit is $250,000 per person per account (1).
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You should also make sure you're maxing out tax-advantaged retirement plans like a 401(k) or IRA, so you're on track for retirement and claiming all your tax breaks.
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Look at your asset allocation
The next thing to think about is whether you have the right asset allocation. You don't want too much exposure to risk based on your age. While you still have a lot of time until retirement, and time to wait out downturns or rebuild from losses, you don't have as much time as someone in their 20s or 30s.
One good rule of thumb (2) is to subtract your age from 110 and make sure that percentage of assets is in the stock market. So, if you're 45 (like Joe) you would want 65% of your money in equities at this phase of your life. The rest should be in safe investments like bonds (for longer-term investments) or in CDs (if your timeline until you need the money is five years or less).
If you already have a lot of money in equities, then sticking with CDs or opting for treasury bonds may be the best approach for your $300K. While you wouldn't be taking on the added risk you want, it may be smarter not to if you already have a lot of market exposure.
If you do opt to put the money back into CDs, a CD ladder could be a good option. That involves buying a mix of different CDs that mature at different times, such as putting some of the money into a one-year CD, a two-year CD, a three-year CD, and so on.
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This reduces your interest-rate risk and allows you to regularly have CDS maturing so you can make decisions more often about what to do with the money.
Consider ETFs or diversified index funds
If you decide it makes sense to put some money into the market based on your asset allocation, then ETFs that track financial indexes can be a good way to go.
These tend to come with low fees, offer instant diversification, and are easy to invest in even without a lot of specialized knowledge.
You could:
- Opt for a fund that tracks the S&P 500, like the Vanguard S&P 500 ETF (VOO) or the SPDR S&P 500 ETF Trust (SPY). The S&P 500 is a financial index that gives you investment exposure to around 500 of the largest U.S. companies across all industries. It's consistently produced around 10% to 11% (3) average annual returns.
- Opt for a total market fund like the Vanguard Total Stock Market Index Fund (VTSAX) that provides broad exposure to the equity markets by investing in a mix of companies that primarily trade on the New York Stock Exchange (NYSE) and Nasdaq.
- Opt for a growth fund that invests in companies expected to grow sales and earnings more quickly than the industry average. These funds carry a higher risk, but the potential for higher returns. Examples include the Vanguard Growth Index Fund Admiral Shares (VIGAX) or Fidelity Blue Chip Growth Fund (FBGRX).
If you have a brokerage account, you can use their fund screener to compare things like expense ratios and investment mix to find a fund that meets your financial goals. The lower the fees, the less of your returns you'll lose, so focus on both cost and past performance.
Ultimately, $300,000 is a lot of money, so you may want to do a mix of these things, including using some of the funds to build a CD ladder and some to take on more risk and get more exposure to the market. And, if you aren't sure what's best, you can always talk to a financial or investment advisor to get personalized advice.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Federal Deposit Insurance Corporation (1); Old National Bank (2); Fidelity Investments (3)
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
