IRA CD Early Withdrawal Penalty

bbug | Jul 2, 2010 | 7 posts since 2010

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?

Bill

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Answers

Ken Tumin | Jul 2, 2010 | 5,706 posts since 2009

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:

Pentagon Federal Credit Union (see review)
Northwest Federal Credit Union (see review)

bbug | Jul 3, 2010 | 7 posts since 2010

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.

Bill

rsven | May 17, 2011 | 1 posts since 2011

I have just checked into this and CITIBANK does not charge early withdrawal penalty for IRA customers over 59 1/2.

lou | May 17, 2011 | 634 posts since 2010

Yeah, but what rate will Citibank offer you.