Monitoring certificates of deposit

When you invest in a certificate of deposit, you receive an actual document that indicates the principal you invested, the interest rate, the length of time of the investment, and the final amount you will receive. Some institutions include your balance information on the statements you receive from other accounts you have with them, but not all do that. Possibly the most important thing to keep in mind with your CD investment is to keep track of the dates, because right around the time your CD matures you will receive a notice giving you the option to roll over the money from that account into an identical CD. You must respond during the 10-day period just prior to your maturation date or else it automatically rolls over.

If you miss that 10-day window of opportunity to cash in your CD, your investment automatically rolls over into an identical CD account and the financial penalty for withdrawing that money before it matures can in some cases cost you the amount you gained through interest.