When you open a CD account, you agree to leave your money in the account for the term you select, typically one to three years. If you take your money out before the term is up, you will be charged a penalty for early withdrawal.
At BBVA Compass, current early withdrawal penalties are:
A CD is essentially a contract between you and the bank stating you will leave the money in the bank for the agreed-upon term and in return the bank will pay you an agreed-upon rate of interest. If you take money out of your account before the term is up, you’ve broken the contract and therefore are charged a penalty fee.
You can withdraw funds from your CD when it reaches maturity, or in other words, at the end of the CD’s term. If your CD is eligible for automatic renewal, you will be notified before the term expires and will have a 10-day window during which you can withdraw funds without a penalty.
If you are cashing in your CD before it matures, or before the agreed-upon term is up, you will need to notify your bank. You will have to sign some papers and then you will be given the balance in the account minus any penalty fees.
Most CDs automatically renew, meaning if you do nothing, your CD will be renewed for the same term and rates you agreed to when you opened the account. You will be notified 20 to 30 days before your CD is about to mature. After the maturity date, you will have a grace period of five to 10 days, depending on the CD, to either terminate your CD or let it automatically renew.
If you decide not to renew your CD, notify your bank during the grace period and they will make arrangements to close the account and have all funds delivered to you per your instructions.