CD Early Withdrawal Penalty Calculator

See our CD penalty calculator and a list of banks’ penalties to find out what an early withdrawal costs.

Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a focus on certificates of deposit and other banking-related topics. His work has been featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Oakland, California.

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Sara Clarke is a former Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She managed projects such as the U.S. News education rankings and the Best States rankings. Sara has appeared on SiriusXM Business Radio and iHeartMedia’s WHO Newsradio and has been quoted in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based near Washington, D.C.

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Certificates of deposit, unlike regular savings accounts, keep your funds under lock and key for a specified term. And banks give a good incentive not to tinker with the lock: Withdrawing before the CD term's end usually costs you.

A CD penalty is the interest earned in a CD for a fixed number of days or months, which makes this charge tricky to know. But you can get an estimated dollar amount for what a penalty can cost you by using our calculator below.

CD early withdrawal penalty calculator

See what an early withdrawal from a CD can cost, with help from a list of penalties at some banks and credit unions. ( Skip down to that list.)

» Withdrawing early for a better CD rate? Consider when breaking a CD early pays off

Calculator assumptions

The CD early withdrawal penalty calculator assumes three things:

The penalty is in terms of simple interest. This means that the penalty doesn’t factor in compounding, and that aligns with many banks’ approach to penalties.

CD interest, outside the penalty, is compounded daily , which is typical for online high-yield CDs. If your CD is compounded monthly, results may differ slightly.

There are no partial withdrawals for CDs. Although some banks allow this, many don’t, so our calculator follows suit. If your bank lets you withdraw part of your CD early, the penalty tends to be for the withdrawn amount instead of the full CD balance at the time of withdrawal.

No-penalty CDs: the big exception

Early withdrawal penalties are standard, but some CDs let you withdraw for free at any time, generally after the first week. These no-penalty CDs don't have the highest rates, but you can find yields comparable to high-yield savings accounts. (Check out NerdWallet's best savings accounts .)

No-penalty CDs have a big plus over savings accounts: Your rate is locked in. (See more details about the best no-penalty CDs .)

SoFi Checking and Savings

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

EverBank Performance℠ Savings

Barclays Tiered Savings Account

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

on Wealthfront's website

Wealthfront Cash Account

on Betterment's website

Betterment Cash Reserve – Paid non-client promotion

*Current promotional rate; annual percentage yield (variable) is 5.50% as of 4/2/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.

Marcus by Goldman Sachs High-Yield CD

4.70% APY (annual percentage yield) as of 08/30/2024

Federally insured by NCUA

Alliant Credit Union Certificate

Annual Percentage Yield (APY) is accurate as of 09/10/2024

Discover® Cashback Debit

Chase Total Checking®

Deposits are FDIC Insured

Chime Checking Account

Discover® Money Market Account

Tip about banks vs. credit unions

Credit unions often use different terms than banks when describing the same type of account. Banks call them CDs, while credit unions call them certificates or share certificates. Banks say interest, while credit unions say dividends.

CD penalties can be measured in days or months. Here’s a rough guide to convert from days to months: 60 days = 2 months; 90 days = 3 months; 120 days = 4 months; 180 days = 6 months; 270 days = 9 months; 540 days = 18 months; 720 days = 24 months.

CD early withdrawal penalties at banks and credit unions

Here’s a look at CD penalties at some notable banks and credit unions.

Financial institution (click to read our review)

Early withdrawal penalty

Financial institution (click to read our review)

Early withdrawal penalty

Alliant Credit Union*

American Express Bank

Bethpage Federal Credit Union

Connexus Credit Union

Navy Federal Credit Union*

Pentagon Federal Credit Union**

For 1-year to 7-year certificates withdrawn before the first year ends: 1 year of expected dividends.

For 1-year to 7-year certificates withdrawn after the first year: 30% of total expected dividends for the full term of the certificate.

Sallie Mae Bank

You only pay dividends, regardless of how early you withdraw. Many banks have a fixed penalty that allows them to take from your original CD deposit if you withdraw your CD early enough. But Alliant's and Navy Fed's type of penalty is different: If you withdraw your certificate before it reaches the maximum days of the penalty, such as 90 days of interest for a 1-year certificate, the penalty is only the dividends you've earned for the days your certificate was opened.

Many CD penalties are in days' worth of interest or dividends already earned, but PenFed uses expected dividends. PenFed's penalty has a greater chance of dipping into your original deposit, meaning you can lose money from a certificate.

See CD rates by term and type

Compare the best rates for various CD terms and types:

How do CDs work?

Learn more about choosing CDs, understanding CD rates, and opening and closing CDs.

Here’s a quick list of CD rates at traditional and online banks and a brokerage:

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Spencer Tierney is a writer and NerdWallet's authority on certificates of deposit. His work has been featured by USA Today and the Los Angeles Times. See full bio.

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