Can a bank cash out a CD without the account holder's permission?
Unless the bank were served with a legal claim on the funds in the form of a levy for unpaid taxes or an attachment of funds in a legal action, cashing out the CD without the owner's permission would be inappropriate. However, if the CD matures and does not automatically renew according to its terms, the bank would place the funds in a non-interest earning account awaiting the owner's instructions.
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Unless the bank were served with a legal claim on the funds in the form of a levy for unpaid taxes or an attachment of funds in a legal action, cashing out the CD without the owner's permission would be inappropriate. However, if the CD matures and does not automatically renew according to its terms, the bank would place the funds in a non-interest earning account awaiting the owner's instructions.
