What is a CD? A CD is a type of deposit account that typically earns higher interest rates than traditional savings accounts, but comes with a fixed withdrawal or maturity date.
When you open a CD account, you agree to leave your money in the account for the term you select. If you take your money out before the it reaches its maturity date, you will be charged an early withdrawal penalty.
It’s important to know that penalties vary by bank and even by the term of a CD at the same bank. You can continue reading below to learn more about their penalties.
| CIT BANK CD TERM | RATE | LINK |
| 12-Month Term | 0.30% APY | Apply Now |
| 13-Month Term | 0.35% APY | Apply Now |
| 18-Month Term | 0.30% APY | Apply Now |
| 4-Year Term | 0.50% APY | Apply Now |
Table of Contents
CD Early Withdrawal Penalties
|
Financial institution |
Penalty |
|
|---|---|---|
|
Alliant Credit Union* |
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Ally Bank |
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American Express Bank |
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Bank5 Connect |
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Bank of America |
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Barclays |
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Capital One |
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Chase |
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CIT |
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Citibank |
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Citizens Access |
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Connexus Credit Union |
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Discover Bank |
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Marcus by Goldman Sachs |
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Navy Federal Credit Union* |
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Pentagon Federal Credit Union** |
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Popular Direct |
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PurePoint |
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Synchrony |
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TIAA Bank |
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Wells Fargo |
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* Alliant and Navy Federal CU’s penalties: You pay interest, regardless of how early you withdraw. Most banks have a fixed penalty that allows them to take from your original CD deposit if you withdraw your CD early enough. But in Alliant and Navy Federal CU’s case it’s different: if you withdraw your CD before it reaches the maximum days of the penalty, such as 90 days of interest for a 1-year CD, the penalty is only the interest you’ve earned for the days your CD was opened.
* PenFed’s penalties: PenFed uses expected interest. PenFed’s penalty has a greater chance of dipping into your original deposit, meaning you can actually lose money from a CD.
No-Penalty CDs
Early withdrawal penalties are standard, however there are exceptions where some CDs let you withdraw virtually at any time for free. These no-penalty CDs don’t have the highest rates, but you can find yields comparable to high-yield savings accounts. Not only that, your rate is locked in.
Editor’s Note: You can learn more about No Penalty CDs here and where you can find one!
 With the CIT Bank No-Penalty 11-Month CD: • Earn 0.30% APY on your funds with just a $1,000 minimum deposit. • The perfect balance between a great fixed rate and flexible money access. • Access funds, if needed. No penalty. • No opening or maintenance fees • Shorter 11-month timeframe and a great APY • If you need your funds prior to the maturity date, you can withdraw your money — including any interest earned — beginning seven days after the funds have been received. No penalty. No problem. It's the security of a CD with the flexibility to access your funds early if you need them. |
Bottom Line
Every bank has its own rules for penalties, so make sure you pay attention to their policies regarding early withdrawal. If you’re interested on finding a way to lock your money in, you can check out our master list of the best CD rates here on HMB!
| PROMOTIONAL LINK | OFFER | REVIEW |
| Chase Business Complete BankingSM | $300 Cash | Review |
| HSBC Premier Checking Member FDIC | $450 Cash | Review |
| HSBC Premier Checking Member FDIC | Up To $600 | Review |
| BBVA Free Checking & Savings | $250 Cash | Review |
| Huntington 25 Checking | $300 Cash | Review |
| TD Bank Beyond Checking | $300 Cash | Review |
| TD Bank Convenience CheckingSM | $150 Cash | Review |
| Huntington Bank Unlimited Plus Business Checking | $750 Cash | Review |
| Huntington Bank Unlimited Business Checking | $400 Cash | Review |
| Huntington Bank Business Checking 100 | $200 Cash | Review |
| Axos Bank Basic Business Checking | $100 Cash | Review |
| Aspiration Spend & Save Account | $100 Cash | Review |
| Ally Invest | Up to $3,000 Cash | Review |
| BlockFi | Up To $250 BTC | Review |
| American Express High Yield Savings | 0.40% APY | Review |
| Discover Cashback Debit Account | $360 Cash | Review |
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