What is the early withdrawal penalty from a Certificate account?
The penalty is based on the term of the Certificate and how many days the Certificate has been opened.
- If funds are withdrawn within 6 days of opening, the penalty will be 7 days' dividends, and may reduce principal.
- On a Certificate with a 3 month term, the penalty is the lesser of dividends earned or 45 days' dividends.
- On a Certificate with a 4-23 month term, the penalty is the lesser of dividends earned or 90 days' dividends.
- On a Certificate with a 24 month term or longer, the penalty is the lesser of dividends earned or 180 days' dividends.
The early withdrawal penalty is waived if:
- The Member is withdrawing from an IRA Certificate after reaching 59 1/2 or becomes medically disabled.
- Any owner of the Certificate dies.
- An owner is deemed incompetent by a court.
- The funds are withdrawn on the maturity date or the 10 calendar days following the maturity date.
- Funds are withdrawn in order to deposit them into an investment product with RCU Investment Services.