How to Cash a CD

by Louise Balle

A certificate of deposit (CD) account delivers the money you’ve invested plus a modest amount of earned interest on the amount at maturity. Although CDs don't offer a lot of return, they are among the safest places to keep your money. Just commit to keep the cash in the account for a certain length of time to earn the full amount of interest. Once the CD matures it is time to cash it in (principal and interest) and decide where else to put the money.

Visit your bank with your identification and the CD account number. Bring your latest account statement if possible.

Verify the final account balance of the CD with the teller. Review the final account balance to ensure its accuracy based on your CD term. You can check the math with an online CD calculator.

Present your identifying information and ask to cash out or close your CD account. Fill out a withdrawal slip with the CD account number, name and amount of the account balance. The teller will close the account and provide you with the cash.

Tips

  • If you want to roll the cash over into another CD account or a standard checking or savings, you can sometimes perform this transaction over the phone or Internet. Ask to wire the money to the new account instead, although you might have to pay a fee for this service.
  • If you choose to cash out a CD before it matures be prepared to pay a penalty. In some cases the penalty is two to three months or more worth of interest.

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