The Boston Globe writes "Getting out of a CD early will cost you". It says, "Savers, already enduring near record-low interest rates on certificates of deposit, face a fresh insult: Banks are slamming customers with steeper penalties if they try to withdraw their money early. The state's three biggest retail banks -- Bank of America, Citizens Bank, and Sovereign Bank -- have significantly increased early-withdrawal fees in recent months. In many cases, the penalties are so steep that they would not only wipe out accrued interest, but also eat into the principal.... Certificates of deposit often pay higher interest rates than traditional passbook savings, but require customers to leave the money in the bank for set terms, typically between a few months and five years. Some consumer advocates say higher penalties for early withdrawal are the latest effort by banks to find revenues to offset losses from bad loans and the cost of complying with new federal regulations."
