As many readers have pointed out, several banks include language in their disclosures that gives them the right to refuse an early withdrawal even if the disclosure lists early withdrawal penalties. As I've pointed out in this post
, there have been cases in which banks have made use of this.
Dr. Don answers a reader's question about this in his Bankrate Ask the Experts article
. He doesn't have much advice except to make sure you ask the question about the bank's right to refuse an early withdrawal before you open the CD. As I mentioned in my previous post, if you do find this language in the disclosure, you may want to see if the bank will sign a letter indicating that they would allow for the closure at the stated penalty.