Early withdrawal penalty

Posted By: Paul

Early withdrawal penalty - 09/30/21 06:59 PM

Every bank I have worked at charged a penalty for CDs broken in the first seven days (regulation D), even for business accounts. We have a major multinational firm that wants to open CDs with us for 2 -4 days. When we told them that a penalty would apply for early withdrawal, they said none of their other banks charge a penalty. I called a colleague of mine at another bank, and she told me that they also charge a penalty to businesses and has been told the same by her customers.

Is there an exception for CD/TDs opened by a business to the minimum 7 day early withdrawal penalty rule (Regulation D)?

Thank you

Posted By: rlcarey

Re: Early withdrawal penalty - 09/30/21 07:15 PM

Please do not post duplicates: https://www.bankersonline.com/forum/ubbthreads.php/topics/2260538/re-regulation-d#Post2260538
Posted By: Paul

Re: Early withdrawal penalty - 09/30/21 07:40 PM

Sorry, was not sure where I should post it.