Ask Terry Questions CD Penalities on Early Withdrawl

CD Penalities on Early Withdrawl

By Terry Savage on February 04, 2025 | Chicken Money

If a bank CD is purchased is it correct there is no way to get your money back ahead of the period ending? My bank is saying there is no way. I have several 3 month certificates and need the $ for an unexpected emergency. I am more than willing to give up any interest etc

Terry Says

Your bank MUST give your money back — minus a penalty that could be 3 months loss of interest, or whatever is written in the contract.
And if the CD is inside an IRA, there should be NO penalty if you are over age 73.
BUT, since it’s only 3 months, put the “emergency” cost on your credit card and pay it off when the proceeds of the CD drop back into your money market account. Just make sure the bank knows not to roll the CD over when it matures in less than 3 months!

money

ASK TERRY

a personal
finance question