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What is the penalty for withdrawing money early from a Certificate?

If the withdrawal does not reduce the certificate funds below the required minimum balance for this type of certificate, the member shall forfeit at the certificate rate an amount equal to the lesser of:

  1. All dividends for 90 days from the amount withdrawn for certificates with a term of 1 year or less; or all dividends for 180 days on the amount withdrawn for certificates greater than 1 year; or
  2. All dividends on the amount withdrawn since date of issuance or renewal.

If the amount withdrawn reduces the certificate funds below the required minimum balance for this type of certificate, the entire certificate will be canceled and the member shall forfeit at the certificate rate* an amount equal to the lesser of:

  1. All dividends for 90 days on the entire amount of the certificate if the certificate is for a term of 1 year or less; or all dividends for 180 days on the entire amount of the certificate if the certificate is for a term of 1 year or more; or
  2. All dividends on the entire certificate since the date of issuance or renewal.

* The term “certificate rate” also includes the “bump rate”, if applicable, when calculating the early withdrawal penalty.

A penalty will not apply if the withdrawal is made subsequent to the death of any owner of the certificate.