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5 Options When Your Term Deposit Matures

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The aging process happens whether we like it or not, right? We can't stay young and adventurous forever. That goes for your term deposit, too! One of the top benefits of a term deposit account is that it’s a low maintenance, low-risk savings option. Deposit money for a specific timeframe, usually between 6 months to 5 years, while earning a higher dividend rate than a regular savings account. As a smart saver, it’s a steady, predictable option that helps you diversify your long-term investments.


But, what happens now that the maturity date is a few months away? After you receive a notification from your financial institution, you’ll have several options on what to do. Start by considering the economic forecast. Is the economy stable? Have interest rates been projected to go up or down? These answers may help you decide what to do next. 

  1. Take no action and have the funds roll over automatically
    The right option for you may be to continue with your current saving strategy. If you decide to do this, all the funds will roll over with the existing term at the market’s current interest rate. Review the interest rate available prior to maturity to help you decide.

  2. Cash out the interest and roll over the initial investment only
    Balance savings and spending by withdrawing only the interest earned. Then roll the initial investment into another term deposit.

  3. Increase or reduce your investment
    You may have more money to invest or perhaps you need some of the funds for another purpose. Consider your personal circumstances and investment goals as you analyze this option.

  4. Invest in a different savings product
    If you’re unsure whether you want to be locked in to a longer term, simply adjust the term length to a 6- or 12-month term instead. Or, consider a different savings option all together. Mountain America Credit Union offers a Term Deposit Plus account which lets you continue making deposits throughout the term. This flexibility may be just what you need moving forward.

  5. Cash out the entire amount
    Perhaps your savings plan has served it’s purpose. You are ready to tackle that home renovation, buy your dream car or enjoy a tropical vacation. Enjoy it! Your savings strategy has paid off.

Mountain America Credit Union has many options for term deposits including our latest addition, the Term Deposit Plus* account. This account gives you everything you love about regular term deposits like choosing the term that works best for you and higher dividends than traditional savings accounts, but then there’s more!
The Term Deposit Plus let’s you start your account with as little as $5 (perfect for showing young children how to save and invest) and you can add money to your account at any time.


Open your term deposit account and start earning today!


* Early-withdrawal penalties may apply. Each member is limited to $100,000 in any one or combination of Term Deposit Plus accounts. Accounts can be opened in terms from 6 months to 5 years. Membership required—based on eligibility. Federally insured by NCUA.

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