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Early withdrawal

What does 'early withdrawal penalty' mean?

Federal law requires a minimum penalty of seven days' interest for early withdrawal on any account classified as a time deposit. Since the law doesn't set a maximum penalty, banks are free to, and usually do, charge much more. Before opening a CD account, find out all the details.

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Bankrate.com's corrections policy
-- Updated: Nov. 21, 2005
 
 
Answers to the most-frequently-asked questions on CDs
 
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NATIONAL OVERNIGHT AVERAGES
1 yr CD 0.99%
2 yr CD 1.20%
5 yr CD 1.82%
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