What are the penalties for withdrawing money early from a CD?

Federal law stipulates that all CDs that are cashed out early are subject to a minimum penalty. If you withdraw an amount within the first six days after deposit, the penalty consists of at least seven days' simple interest. Other than that, banks can set their own penalties for early withdrawal; there is no maximum.

Additionally, you may want to review the Deposit Account Agreement that the bank provided when you opened the account, as it explains the early withdrawal penalties.

June 2019