What is the early withdrawl penalty on a 50K certificate of deposit ?

Question

What is the early withdrawl penalty on a 50K certificate of deposit ?

Answer 1

In general it is a penalty on the interest. However, there are some CDs that have penalties for early withdrawl that may actually cost a portion of the principal. You should have some paperwork from the time you sign up for the CD that explains any and all fees and penalties.

Answer 2

Depends on the bank. Your principle should be guaranteed, but you could loose all or some of the interest.

Answer 3

It depends on your bank and the length of the CD.  You can deduct the penalty on your income taxes, without itemizing.