Columnist Urges Splitting $310,000 CD Proceeds as 2026 Maturities Reach $2.37 Trillion
Updated
Updated · MarketWatch · May 11
Columnist Urges Splitting $310,000 CD Proceeds as 2026 Maturities Reach $2.37 Trillion
9 articles · Updated · MarketWatch · May 11
$310,000 from a maturing CD should first be split to stay under the FDIC’s $250,000 insurance cap before being redeployed, the columnist advised.
For money not needed in the next 12 to 18 months, suggested options included short-term Treasurys or CDs, up to $10,000 in I-bonds at 4.26%, and possibly index funds for longer-term cash.
The advice reflects reinvestment risk: a 1-year CD opened in May 2025 may have paid about 4.5%, while comparable CD rates now are generally 4% or less.
Money kept liquid should sit in a high-yield savings or money-market account, with investors urged to check whether brokerage cash is in a higher-yield fund or a low-paying bank sweep.
The column framed the decision within a broader “term tsunami,” with Financial Brand estimating $2.37 trillion in bank CDs could move through the banking system in 2026.
As trillions exit CDs, which asset class is poised to capture this massive capital inflow by year's end?
With interest rates set to fall in 2026, what is the smartest move for your cash in the next 12 months?
Is the 'term tsunami' a trap for savers, or a rare opportunity to pivot into higher-growth investments?