I have a CDaccount at my bank, and I need to get the money early. The bank won't let me withdraw my funds early, even though I said I was willing to pay a penalty to do it. Can they do this?
A CD is a contract to leave your money on deposit for a specific period. Although many banks will let depositors break such a contract, and assess a penalty when it happens, there is no rule that compels a bank to allow early withdrawals. The bank is entitled to require that you stick to the terms of the contract to which you agreed.
You may be able to borrow your funds back from the bank with a lower-rate personal loan, secured with your CD account. Depending on how much money is involved and how long you have to go before the CD matures, the interest on the loan might be less than the penalty you would have paid if the bank had let you withdraw the funds. Give the bank a call and ask about a CD-secured single payment loan.
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A CD is a contract to leave your money on 