What happens if I withdraw from a CD before maturity?

Withdrawing early usually triggers an early-withdrawal penalty — typically a set number of months of interest — and in some cases can dip into principal.

Updated June 26, 2026

A CD is a time deposit: you agree to leave your money in place for a fixed term in exchange for a guaranteed rate. If you take the money out before the maturity date, the bank generally charges an early-withdrawal penalty.

That penalty is usually expressed as a set number of months of interest — for example, 90 days of interest on a short-term CD or six months or more on a longer one. If you withdraw early enough that you haven't yet earned that much interest, the penalty can reduce your original principal. A few products offer “no-penalty” CDs that waive this charge. If you think you may need the funds sooner, consider a shorter term, a no-penalty CD, or a CD ladder so part of your money matures regularly.

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Disclosure. This page is general educational information. Deposit accounts and banking services are offered through RMO Bank. RMO Bank deposit accounts — checking, savings, money market, and certificates of deposit — are insured by the FDIC up to the maximum amount permitted by law. Account terms, fees, and rates are disclosed in the applicable account agreement and fee schedule, which govern.