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IRA CD Early Withdrawal Penalty

Friday, July 2, 2010 - 2:37 PM
I've been told by banks on numerous occasions that, since I'm over 59 1/2, there is no early withdrawal penalty for partial or full withdrawals, but I'm leery.

Can anyone confirm or refute this?

bbugbbug7 posts since
Jun 22, 2010
Rep Points: 92
1. Friday, July 2, 2010 - 3:21 PM
In terms of the early withdrawal penalty charged by the banks or credit union, it depends on the institution. Some waive an early withdrawal penalty on IRA CDs for those of 59 1/2. Two examples:
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
2. Saturday, July 3, 2010 - 8:22 AM
I was told once or twice it was in accordance with the law (I assume Federal), but I guess not. That's what I was hoping for.

But when my next maturity comes, I'll be sure to check for institutions with no penalties in my circumstances and in writing. It might result in a tolerable rate.

Thanks for the reply.

bbugbbug7 posts since
Jun 22, 2010
Rep Points: 92
3. Tuesday, May 17, 2011 - 3:41 PM
I have just checked into this and CITIBANK does not charge early withdrawal penalty for IRA customers over 59 1/2.
rsvenrsven1 posts since
May 17, 2011
Rep Points: 1
4. Tuesday, May 17, 2011 - 6:24 PM
Yeah, but what rate will Citibank offer you.
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431