How to Take Money Out of a Certificate of Deposit

Ideally the money you invest in a certificate of deposit will remain there until the CD matures. But at times, you will may need to withdraw that money early. If you have an unforeseen expense, or need to deploy the money elsewhere, you can take money out of your CD. Be prepared, however, since the bank imposes a penalty on those unexpected withdrawals.

Find the receipt you received when you bought the certificate of deposit. Review the terms and conditions carefully to determine how much your early withdrawal penalty will be. The penalties for early withdrawal vary from bank to bank.

Visit the bank where you bought your CD and ask to speak to an account representative. Let the account representative know you wish to take money out of your CD.

Complete the paperwork needed to make the withdrawal. You will need to provide your name, address, Social Security number and account number. The money you withdraw from the CD will be reported to the IRS and added to your taxable income.

Ask the bank representative to transfer the money to your checking or savings account. If you prefer, you can have the bank cut a check for the proceeds, but there may be an additional charge for this service.


  • Keep copies of all your paperwork with your tax records. You will need to report the amount of your CD withdrawal to the IRS as income.

About the Author

Based in Pennsylvania, Bonnie Conrad has been working as a professional freelance writer since 2003. Her work can be seen on Credit Factor, Constant Content and a number of other websites. Conrad also works full-time as a computer technician and loves to write about a number of technician topics. She studied computer technology and business administration at Harrisburg Area Community College.