Imagine that you do everything you can to avoid overdrafting your bank account, only to find that your bank has gone ahead and pushed you into the red — and that it doesn’t really care. [More]
Ten years ago, opening a certificate of deposit required $5,000 and an hour at the bank. Today, you only need $1 and five minutes. Take advantage of that to help minimize early withdrawal penalties on CDs.
If you wanted to close your certificate of deposit early, you’d pay a penalty. Unless your CD were callable, your bank can’t close it early with one exception. Fortunately, it’s an exception all banks loathe.