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Penalty on Interest Credited to CD?

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Question: 
When a customer has a certificate of deposit and interest is credited monthly to the certificate, is the bank required to impose a penalty to withdraw any of the paid interest during the term of the certificate?
Answer: 

There is no requirement from a regulatory perspective, however, this should be addressed within your depositor's agreement for your certificates of deposit.

First published on BankersOnline.com 4/30/07

First published on 04/30/2007

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