For savers, a certificate of deposit, or CD, can be a great way to earn a higher interest rate on their deposited funds than they would receive with a regular savings account. CDs typically have a fixed interest rate that is earned over a set period of time, which can be anything from a few months to a few years.

When the CD reaches its maturity date, the saver has three options: They can cash in the CD, renew the CD for another fixed term, or roll the CD over into a new account with a different bank.

Cashing in …