CD Early Withdrawal Penalty Calculator: Should You Break Your CD?
Most CD penalties are a number of days of interest. Enter your CD, its penalty and the new rate you could get to see whether switching comes out ahead.
Keep the CD
The penalty is about $214.52. Over the 12 months left, staying earns $435.00; breaking the CD and moving to 5.35% earns $309.00 net of the penalty — $126.00 less.
The higher rate earns back the penalty after 26.9 months.
Today's best CD rates around 1 year (8–14 months)
- Justice Federal Credit Union 5.35% 9 months · Membership required · branches in 9 states
- Del Norte Credit Union 5.23% 13 months · Membership required · branches in NM
- Community First Credit Union 5.05% 10 months · Membership required · branches in WI
- Capital Credit Union (Wisconsin) 5.00% 10 months · Membership required · branches in WI
- Frankenmuth Credit Union 5.00% 8 months · Membership required · branches in MI
From the institutions we track, verified daily. See all rates.
How the penalty works
A penalty of "180 days of interest" on a $10,000 CD at 2.5% APY is about 10,000 × 0.025 × 180 / 365 = $123. Some banks take the penalty from principal if not enough interest has been earned yet.
Switching pays when the extra interest from the new rate over the remaining months is larger than the penalty.
Example penalties for a $10,000 CD
These are hypothetical scenarios, not bank policy quotes. The estimate uses 4% APY as a proxy for the interest rate and a 365-day year; your account disclosure may specify a different rate or calculation.
| Penalty days | Estimated penalty |
|---|---|
| 90 | $98.63 |
| 180 | $197.26 |
| 365 | $400.00 |
Questions
How much is a typical CD early withdrawal penalty?
Common penalties are 90 days of interest for terms of a year or less and 180–365 days for longer terms, but each institution sets its own. The exact penalty is in the account disclosure.
Can I withdraw part of a CD?
Some institutions allow partial withdrawals with a penalty on the amount withdrawn; others require closing the whole CD.
Can a penalty reduce my original deposit?
It can if the account terms allow the penalty to exceed interest earned. Confirm this in the institution's disclosure.
Is the estimated break-even time exact?
No. It approximates how quickly the higher rate offsets the penalty. The comparison excludes tax effects, transfer delays and changes in future rates.
Where do I find my CD's penalty?
Use your CD agreement or account disclosure, or ask the institution. Penalty days and calculation methods differ, so this site does not assume a particular bank's rule.
Sources and assumptions
See the APY calculation rules, CFPB guide to CDs, and IRS guidance on interest income. Results are estimates based on the inputs and assumptions above; account disclosures control actual payouts and penalties.