CD Early Withdrawal Penalty Calculator
Cashing a CD before its term ends usually costs a penalty, often a set number of months of interest. Enter the balance, the rate and the penalty your bank lists to see the cost.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Interest for a year is the balance times the rate. The penalty is that yearly interest divided by twelve, times the number of months the bank charges. Check your account agreement, since each bank sets its own months.
This page does not model every bank rule. Some banks take part of the principal when the interest earned is not enough to cover the penalty.
Worked example
On a CD of $10,000.00 paying 4.5%, a penalty of 6 months of interest comes to $225.00.
Questions
Does the penalty depend on the CD's length?
Some banks scale the penalty by term. Read the account agreement for the rule that applies to your CD.
Can the penalty reach my principal?
Sometimes, if the interest earned is smaller than the penalty. Ask the bank how it would apply the charge.
Are there CDs without a penalty?
Some banks offer no-penalty or partial-withdrawal CDs. Compare the terms before you open one.
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