Learn about the benefits and drawbacks of accessing CD interest early

  • Some banks and credit unions allow you to access CD interest without penalty
  • Accessing CD interest can be useful for retirees or unexpected expenses
  • Check with your bank or credit union to see if early interest withdrawal is allowed
  • Consider the pros and cons of withdrawing CD interest early
  • CDs are a good choice if you don’t need immediate access to your money

Many banks and credit unions offer the option to access the interest earned on your CD without penalty. This can be beneficial for retirees looking for additional income or for unexpected expenses. However, it’s important to check with your bank or credit union to see if early interest withdrawal is allowed. While this option can be useful, there are pros and cons to consider. Withdrawing the interest early means losing out on the compounding effect, which can lead to higher returns over time. If liquidity is a priority, other options like money market accounts or high yield savings accounts may be more suitable. Ultimately, CDs are a good choice if you have a specific savings goal and don’t need immediate access to your money.

Factuality Level: 8
Factuality Justification: The article provides information about accessing the interest earned on a CD without penalty. It explains that while most CDs charge an early withdrawal penalty, some banks and credit unions allow you to access the interest earned without penalty. The article also mentions that this option can be useful for retirees looking for an income stream or for unexpected needs. It advises readers to check with their bank or credit union to see if this option is available and provides some pros and cons of withdrawing CD interest early. Overall, the article provides accurate and objective information about accessing CD interest.
Noise Level: 7
Noise Justification: The article provides some useful information about accessing the interest on a CD without penalty, but it lacks depth and analysis. It repeats the same points multiple times and does not provide any new insights or solutions. The article also does not support its claims with evidence or data. Overall, it contains some noise and filler content.
Financial Relevance: Yes
Financial Markets Impacted: CD holders and individuals considering investing in CDs
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the option of accessing the interest earned on a certificate of deposit (CD) without penalty, which can be relevant to individuals looking for income or facing unexpected financial needs. However, there is no mention of any extreme events or their impact.
Key People: Ryan Haiss (Certified Financial Planner at Flynn Zito Capital Management), Elizabeth Ayoola (Investing Writer and Expert at NerdWallet), Ken Tumin (Founder of DepositAccounts.com), Lionel Poudevigne (Senior Vice President and Head of Deposit Pricing and Portfolio Management at KeyBank), Matthew Goldberg (Consumer Banking Reporter at Bankrate), Pam Horack (Certified Financial Planner at Pathfinder Planning)

Reported publicly: www.marketwatch.com