Comparing Early Withdrawal Penalty Fees for CDs
A certificate of deposit (CD) is an investment option offered by banks and credit unions when you want to invest a portion of your money and “lock” it up for certain amount of time. Because the money tied up in CDs are locked for a length of time, banks offer an interest rate that is higher than the usual savings account rate.
CDs are ideal for those who want to make investments for the short to medium term. The process of opening up a CD is pretty simple, but the main point of CDs is for the money to remain untouched for however long the CD term is. So if you withdraw the money early, banks levy a penalty, one that’s usually pretty high. Below are the early withdrawal penalty fees for 10 major banks in America, which include Bank of America, Chase, Capital One 360, Ally, Discover Bank, Citibank, Ever Bank, American Express Bank, US Bank, and Wells Fargo.
Comparing CD Early Withdrawal Penalty Fees Across Major Banks
| Compare | 1-year deposit | 5-year deposit |
|---|---|---|
| Ally Bank | 60 days of interest | 150 days of interest |
| Bank of America | 180 days of interest | 365 days of interest |
| Capital One 360 | 3 months of interest | 6 months of interest |
| CIT Bank | 3 months of simple interest | 12 months of simple interest |
| Discover Bank | 6 months of interest | 18 months of interest |
| American Express National Bank | 270 days of interest | 540 days of interest |
| Chase | 1% of the withdrawal amount | 2% of the withdrawal amount |
| Wells Fargo | 6 months of interest | 12 months of interest |
| Citibank | 90 days of interest | 180 days of interest |
| U.S. Bank | $25 + either 1/2 of the interest you would have earned if the funds were withdrawn after maturity OR 1% of the withdrawal amount, whichever is greater | $25 + either 1/2 of the interest you would have earned if the funds were withdrawn after maturity OR 3% of the withdrawal amount, whichever is greater |
