How to Cash a Certificate of Deposit

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Cash a certificate of deposit, or CD, by visiting the bank or brokerage firm that runs the CD, checking on whether the CD has matured and having the funds transferred to a bank account. Consider checking the rates on publicly traded CDs before withdrawing the funds with advice from an investment portfolio manager in this free video on investing and personal finance.

Part of the Video Series: Investing & Personal Finance Tips
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Video Transcript

So how do you cash a certificate of deposit? There is really two major ways you may be doing this. The most common would be if you had a certificate of deposit from a bank. It is just a bank issued cd. You go into the bank, you don't actually physically have a cd but they'll have an account on file for you and what they'll be able to do is just transfer that into liquid assets and they may actually just be able to transfer it into your checking or savings account at the time that you are there or roll it into another one. The other type of certificate of deposit you may have may be with a brokerage firm and that may be something that was traded on the open market because cd's are traded as a security. So in that case you have to go into the brokerage house. You may not even have the cd at maturity but it might be an advantageous time to cash in so that cd would actually have to be sold on the market. You would get whatever the price would be on the open market and then the money is yours to do as you wish and again if you are cashing in your cd or selling your cd through a brokerage house make sure that you go in and inquire what that current price would be. You want to make sure that you are getting the most back that you can and your brokerage may actually have some advice in terms of where those cd's are headed either up or down and why the price may be what it is but do inquire as to what the price is before you go and do the sale.

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