Savings & CDs
CD Penalty
Calculator
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How CD penalties work
CDs offer higher rates than savings accounts in exchange for locking your money up. Withdraw early and the bank charges a penalty — usually 3-6 months of interest. Terms under 12 months often have 3-month penalties; longer terms have 6-month penalties.
Strategies to avoid penalties
01
Build a CD ladder
Stagger maturity dates so one CD matures every 6 months.
02
Choose no-penalty CDs
Lower rates but full liquidity. Ally and Marcus offer these.
03
Use a HYSA instead
Slightly lower rates but zero penalties for withdrawal.
04
Wait for penalty reduction
Many banks reduce penalty from 6 to 3 months after halfway through the term.
Related tools
Estimates only. Penalty structures vary by bank. Check your specific CD terms.