CDs and savings accounts are tools to help support your financial goals. A CD offers a higher interest rate to meet longer term savings goals and offers a higher rate than associated with a business or personal tiered savings account. However, accessing funds in a CD before the maturity date may result in an early withdrawal penalty. A savings account can be used to meet shorter term savings needs such as an emergency fund. Access to funds in a savings account may require you to give us seven (7) days advance notice if you plan to withdraw funds. For more information, please visit personal CDs or business CDs.
Your account will automatically renew at maturity, but you will have a grace period of ten days after the maturity date to withdraw your funds without being charged an early withdrawal penalty. The renewed account will be for the same term as the original term, at the non-promotional interest rate and APY in effect on your maturity date.
If you withdraw any principal before the maturity date, a penalty may be imposed. The penalty amount, or any portion thereof, will be deducted from the amount withdrawn. Also, the penalty will not be imposed if the withdrawal is due to the death or legal incompetence of any depositor listed in the account name. For more details on account terms and penalty amounts, please visit the Deposit Terms and Conditions.
Interest that you earn on your CD is usually treated as income and reported as part of your income tax returns. We will provide for you a 1099-INT statement at the beginning of the following year. But everyone's situation could be different, so consult a tax expert.