A CD is a great investment but it can be hard to find one that does not come with penalties for early withdrawals. This is because banks consider them to be long-term investments and want you to leave your money invested for 6 months, a year, or even 5 years. It allows the bank to know exactly how long they can use the money for and can thus make commitments with the money.

Thus, if you take out your money early, the bank may have to face a penalty of their own which is then passed onto you. There is no maximum penalty for early withdrawal of CDs but the charge usually falls between 30 and 90 days of interest.

If you need to withdraw early then do not be afraid to ask. If you are friendly or dealing with a small agency then the staff may waive the fee to help you out, but do not rely on it.