Certificates of Deposit (CDs) come in varying terms or length of time they are locked it. A longer term typically earns a higher rate of return. In general, the longer the term the higher the rate you’ll be offered.

As in any investment, CD’s should be evaluated to make sure the fit within your overall financial plan. If you need to access your funds before the CD’s term ends, you will be subject to early withdrawal penalties. The fees for early access are as follows

For Certificate accounts with terms of 365 days or less, the amount of the early withdrawal penalty is the lesser of the amount of accrued dividends at the time of withdrawal or 90 days dividends.

For Certificate accounts with terms of 366 days or more, the amount of the early withdrawal penalty is

the lesser of the amount of accrued dividends at the time of the withdrawal or 180 days dividends.

In both cases the penalty is calculated on the amount withdrawn.