Certificates of Deposit (CDs)
My certificate of deposit (CD) has matured. How and when will I receive my funds?
Banks may process maturing CDs in a number of ways, and you should ask the bank about its particular method or review the terms of your account agreement. Generally, banks may process CDs at a single location and not at […]
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My certificate of deposit (CD) matured, but I didn't redeem it. What happened to my funds?
You may have a grace period to decide whether to renew or withdraw the funds. If this has expired, the bank may continue to pay interest on the funds until you decide, depending on the terms of your account agreement. The […]
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What are the penalties for withdrawing money early from a certificate of deposit (CD)?
It depends on the terms of your account. Federal law sets a minimum penalty on early withdrawals from CDs, but there is no maximum penalty. If you withdraw money within the first six days after deposit, the penalty is at […]
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Does the bank have to continue to pay interest on my CD after it matures?
Not necessarily. If you choose to roll over/renew the CD for another term, the bank will pay interest according to the roll over or renewal terms of your account agreement. Let's say you haven't decided in advance. Once […]
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Interest rates have gone up, but the bank refuses to raise the rate on my certificate of deposit (CD). Why?
When you open a CD, you enter into a contract involving a fixed amount of money (principal) for a predetermined period of time (the term) and an agreed-upon interest rate and yield. The bank is complying with the terms of […]
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I cashed my certificate of deposit (CD) before it matured, and the bank charged me an early withdrawal penalty. Can it do this?
Yes. While there are some exceptions, CDs are not intended to be liquid (that is, able to be converted into cash easily at any time). When you buy a CD you enter into a contract involving a fixed amount of money (principal) […]
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