On fixed rate certificates of deposit, the rate is fixed for the term of the certificate. The Annual Percentage Yield on fixed rate Certificates of Deposit assumes daily compounding of interest which is credited quarterly. A withdrawal will reduce earnings. On Certificates of Deposit, if you withdraw any principal before the maturity date, for any reason other than death of the depositor or declaration of the depositor as mentally incompetent, a penalty as shown below may be imposed.
|Term||Early Withdrawal Penalty|
|7-179 days||31 days interest|
|180-364 days||90 days interest|
|365 days – 59 months||180 days interest|
|59 months or greater||365 days interest|
The bank is required by Regulation D to impose an early withdrawal penalty of at least seven days’ simple interest on amounts withdrawn within the first six days after deposit, except upon the death of any owner of the time deposit or when any owner of the time deposit is determined to be legally incompetent by a court or other administrative body of competent jurisdiction.