CD Early Withdrawal Penalty Calculator 2026
Break a $10,000 Sallie Mae 1 year CD at 4.60% after 6 months and the penalty is $110.90, leaving you $10,116.51. Pick any of 53 banks with verified penalty rules, or enter your own.
Updated Nov 7, 2026
Early withdrawal penalty at 47 banks
The same move at every bank we track with a verified penalty rule: $10,000 in a 12-month CD at its tracked $10,000-tier rate (relationship rates are labeled), withdrawn after 6 months. Rates checked Nov 7, 2026; penalty rules checked against each bank's disclosure, most recently Nov 7, 2026.
| Bank | 12-mo APY | Penalty rule | Penalty | You get |
|---|---|---|---|---|
| Salem Five | 4.50% | 4% of the amount withdrawn | $400.00 ⚠ | $9,822.52 |
| Popular Direct | 4.60% | 270 days of interest | $332.70 ⚠ | $9,894.71 |
| Poppy Bank | 4.25% | 3% of the amount withdrawn | $300.00 ⚠ | $9,910.29 |
| American Express | 3.75% | 270 days of interest | $272.34 ⚠ | $9,913.44 |
| Flagstar | 4.30% | 180 days of interest | $207.63 | $10,005.10 |
| TD Bank | 4.15% | 6 months of interest | $203.32 | $10,002.07 |
| First Internet Bank | 4.00% | 180 days of interest | $193.43 | $10,004.61 |
| Fifth Third | 3.70% | 2% of the amount withdrawn (capped at interest earned) | $183.32 | $10,000.00 |
| PenFed | 3.60% | 365 days of interest (capped at interest earned) | $178.41 | $10,000.00 |
| WSFS | 2.75% | 6 months of interest | $135.65 | $10,000.92 |
| Sallie Mae | 4.60% | 90 days of interest | $110.90 | $10,116.51 |
| E*TRADE | 4.55% | 90 days of interest | $109.72 | $10,115.25 |
| Capital One | 4.45% | 3 months of interest | $108.85 | $10,111.23 |
| Barclays | 4.50% | 90 days of interest | $108.54 | $10,113.98 |
| Live Oak Bank | 4.50% | 90 days of interest | $108.54 | $10,113.98 |
| Marcus | 4.40% | 90 days of interest | $106.18 | $10,111.45 |
| City National | 4.39% | 90 days of interest | $105.94 | $10,111.20 |
| Bask Bank | 4.35% | 90 days of interest | $105.00 | $10,110.19 |
| Wright-Patt | 4.25% | 3 months of interest | $104.06 | $10,106.23 |
| Synchrony | 4.30% | 90 days of interest | $103.82 | $10,108.92 |
| Alliant | 4.30% | 90 days of interest (capped at interest earned) | $103.82 | $10,108.92 |
| Citi | 4.25% | 90 days of interest | $102.63 | $10,107.65 |
| First Horizon | 0.10% | 1% of the amount withdrawn | $100.00 ⚠ | $9,905.00 |
| CIT Bank | 4.00% | 3 months of interest | $98.06 | $10,099.98 |
| Navy Federal | 4.05% | 90 days of interest (capped at interest earned) | $97.90 | $10,102.59 |
| SECU | 4.00% | 90 days of interest (capped at interest earned) | $96.71 | $10,101.33 |
| Forbright Bank | 3.65% | 90 days of interest | $88.40 | $10,092.46 |
| Unitus | 3.65% | 90 days of interest (capped at interest earned) | $88.40 | $10,092.46 |
| EverBank | 3.50% | 91 days of interest | $85.77 | $10,087.72 |
| U.S. Bank | 3.40% | 90 days of interest (capped at interest earned) | $82.45 | $10,086.13 |
| Zions Bank | 3.05% | 90 days of interest | $74.08 | $10,077.27 |
| WaFd Bank | 3.00% | 90 days of interest | $72.89 | $10,076.00 |
| Ally | 4.50% | 60 days of interest | $72.36 | $10,150.16 |
| America First | 3.90% | 60 days of interest | $62.89 | $10,130.24 |
| First Citizens | 2.00% | 3 months of interest | $49.51 | $10,050.00 |
| United Bank | 2.00% | 3 months of interest | $49.51 | $10,050.00 |
| Associated Bank | 1.00% | 181 days of interest | $49.34 | $10,000.53 |
| USAA | 1.80% | 90 days of interest | $43.99 | $10,045.61 |
| Wells Fargo | 1.50% | 3 months of interest | $37.22 | $10,037.50 |
| CIBC Agility | 4.50% | 30 days of interest | $36.18 | $10,186.34 |
| Fulton Bank | 0.70% | 182 days of interest | $34.78 | $10,000.16 |
| Open Bank | 3.75% | 30 days of interest | $30.26 | $10,155.51 |
| Chase | 0.50% (relationship) | 180 days of interest (capped at interest earned) | $24.60 | $10,000.37 |
| Huntington | 0.25% | 180 days of interest | $12.31 | $10,000.18 |
| ESL | 0.12% | 90 days of interest | $2.96 | $10,003.04 |
| PNC | 0.02% | 6 months of interest | $1.00 | $10,000.00 |
| Webster Bank | 0.01% | 3 months of interest | $0.25 | $10,000.25 |
⚠ means the penalty reaches your principal at this withdrawal date. Each bank's full penalty schedule is on its CD rates page.
The penalty by how long you have held
Interest, penalty phases and caps are recalculated at every withdrawal date. The Sallie Mae 1 year CD at 4.60%, withdrawn at different points:
| Withdraw after | Interest earned | Penalty | You get | Effective APY |
|---|---|---|---|---|
| 1 month | $37.55 | $110.90 | $9,926.65 | -8.46% |
| 3 months | $113.07 | $110.90 | $10,002.17 | 0.09% |
| 6 months | $227.41 | $110.90 | $10,116.51 | 2.34% |
| 9 months | $343.05 | $110.90 | $10,232.15 | 3.11% |
| 12 months (maturity) | $460.00 | None | $10,460.00 | 4.60% |
From month 3 the interest beats the penalty, so an early withdrawal still leaves you ahead. Before that, breaking costs principal.
Should you break it for a better rate?
Paying the penalty can be worth it when today's rates are well above your CD's. The break-even test: reinvest the payout at the new rate until the old CD's maturity date, and see which side finishes ahead. For the Sallie Mae CD at 4.60%, with the best tracked rate for the remaining term at 4.35% (Popular Direct):
| Break after | Payout after penalty | New APY needed to break even | New rate / term | Switch value | Verdict |
|---|---|---|---|---|---|
| 3 months | $10,002.17 | 6.15% | 4.50% / 9 months | $10,337.88 | $122.12 behind |
| 6 months | $10,116.51 | 6.91% | 4.35% / 6 months | $10,334.21 | $125.79 behind |
| 9 months | $10,232.15 | 9.21% | 4.30% / 3 months | $10,340.42 | $119.58 behind |
The longer you have held, the less remaining term there is to earn the penalty back, so the bar for switching rises. This assumes the new rate is available for the whole remaining term.
The penalty by deposit size
Months-of-interest penalties scale with the deposit. The same Sallie Mae 1 year CD at 4.60%, broken after 6 months:
| Deposit | Interest earned | Penalty | You get | Interest kept |
|---|---|---|---|---|
| $5,000 | $113.71 | $55.45 | $5,058.26 | $58.26 |
| $10,000 | $227.41 | $110.90 | $10,116.51 | $116.51 |
| $25,000 | $568.54 | $277.25 | $25,291.29 | $291.29 |
| $50,000 | $1,137.07 | $554.50 | $50,582.57 | $582.57 |
| $100,000 | $2,274.14 | $1,109.00 | $101,165.14 | $1,165.14 |
How CD early withdrawal penalties work
- Months or days of interest on the amount withdrawn is the most common form: charge simple interest for the stated period at the CD's rate. Because it ignores how long you have actually held, breaking early hurts most.
- Caps matter. 8 of the 53 banks we track cap the penalty at the interest you have earned, so you never lose principal. At the rest, breaking in the first months can cost more than you have earned.
- Other structures exist: a percentage of the amount withdrawn, a percentage of the interest the CD would have earned to maturity, a flat fee, or "the greater of" several of these. Bank mode handles these verified rules; custom mode supports the simpler penalty structures and flat fees.
- The penalty is on the amount withdrawn. Some banks allow partial withdrawals and charge only on that part; others require closing the CD. Check the disclosure.
- It is tax-deductible. The penalty shows in box 2 of your 1099-INT and reduces your income even if you do not itemize.
- Grace periods are short. At maturity you typically get 7 to 10 days before an automatic renewal locks the money into a new term, with the penalty back in force.
Early Withdrawal Penalty Formula
Most penalties are stated as months or days of simple interest on the amount withdrawn.
r = 365 × ((1 + APY)^(1/365) − 1)Example:
Sallie Mae 1 year CD at 4.60% APY
Variables:
Penalty = P × r × (months ÷ 12)Example:
$10,000 deposit, 90 days of interest
Variables:
Payout = P + Interest earned − PenaltyExample:
Withdrawn after 6 months
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
CD early withdrawal penalty FAQs
Quick answers on penalty amounts, principal loss, break-even points and taxes.
How much is the early withdrawal penalty on a CD?
Can a CD early withdrawal penalty take my principal?
Is the CD early withdrawal penalty tax deductible?
When does breaking a CD for a better rate make sense?
What is the earliest I can withdraw without losing money?
Do I pay a penalty if I withdraw at maturity?
How is a penalty of "6 months of interest" calculated?
What is a no-penalty CD?
Sources and how we calculate
Penalty rules come from each bank's official disclosure, verified for 53 banks, most recently Nov 7, 2026; bank rates were checked Nov 7, 2026. Months-of-interest penalties are charged as simple interest at the nominal rate behind the APY, the same math the bank pages on this site use; payouts grow at the APY, matching each bank's maturity promise. The break-and-switch test assumes the new rate is available for the whole remaining term. Results are estimates, not an offer from any bank. Plan around penalties with the CD ladder calculator, which frees up cash every year without breaking a CD.
- CFPB: What is a certificate of deposit?
- IRS: Publication 550, Investment Income and Expenses
- Investor.gov (SEC): Certificates of Deposit
- FDIC: National Rates and Rate Caps
- CFPB: Regulation DD (Truth in Savings)
Figures last checked on Nov 7, 2026. Read our calculation methodology for data sources and update schedule.