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Max Penalty Bank Can Charge on COD

Question: 
What is the maximum penalty that a bank can charge on a certificate of deposit?
Answer: 

by Brian Crow:

Any limits would be a matter of state law. Provided that penalties are properly disclosed on the certificate's Truth in Savings disclosure, there is no federal limit.

Answer: 

by David Dickinson:

Brian is right. I've seen some CD contracts that state the penalty will be the full term of the CD. For example a 5 year CD has a 5 year early withdrawal penalty.

First published on 01/14/2018

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