For example if I have a 12 month CD and at the end of the term, does the money just sit there or do I have to withdraw and close the account?
2007-02-19 14:12:26 · 4 answers · asked by juju 3 in Business & Finance ➔ Personal Finance
It depends on the CD and the bank. Some of these CDs will automatically role over into a new CD if you don't tell the bank not to. You should call the bank.
2007-02-19 14:16:58 · answer #1 · answered by Homeslice 4 · 0⤊ 0⤋
Most banks roll the money over into a same term CD at the current interest rate for that CD. If you withdraw the money within a 30 day period (or want to withdraw the money), you pay no early withdrawal penalty but receive no additional interest for that period. Only the interest and principal from the original term. That's why it behooves you to make a decision quickly as to your money at the end of the term.
2007-02-19 22:19:08 · answer #2 · answered by MJ 4 · 0⤊ 0⤋
I've had 3 or 4 different CD, and I had what they call a grace period, where I had to have my money out by the 10th day, and if not I got pentialze.
2007-02-20 00:05:22 · answer #3 · answered by mimi 4 · 0⤊ 0⤋
Don't just assume you can get your money out for 30 days....the grace period for my Wells Fargo CD is 7 days! The bank should send you paperwork with all that information when you open it.
2007-02-19 22:42:35 · answer #4 · answered by Rank Roo 4 · 0⤊ 0⤋