Is it better to purchase maturity series CD or a renewable series CD? I am not sure what the difference is.
This is the choice of the individual and would depend on the terms offered and the convenience. Some Certificate of Deposit accounts have a set maturity date and when that date comes, you are expected to move these funds as the CD has stopped earning interest.
CDs that have an auto-renew feature will do just that. If you had a six month CD and it matures, it automatically renews into another six month CD. Your bank will have told you the new rate or told you how to find out what it is. At maturity, you still have the option of taking your funds or placing them in another account that better meets your needs. When you have a automatically renewable CD coming due, you could instruct your bank in advance on what you want done, or in most cases you have a ten day grace period after maturity to make this choice, without having to pay a penalty, so you can stop the auto-renew feature. Your bank can tell you what the penalty and grace period is or you can refer to your current CD terms.
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This is the choice of the individual and would depend on the terms offered and the convenience. Some Certificate of Deposit accounts have a set maturity date and when that date comes, you are expected to move these funds as the CD has stopped earning interest. 