Skip to content

Max Penalty Bank Can Charge on COD

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

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.


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

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics