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How is the penalty calculated for closing out a certificate early?

April 26, 2017calculated Certificate closing early penalty

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How is the penalty calculated for closing out a certificate early?

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When a certificate is closed before maturity, one half of the potential interest will be forfeited. For example if you took out a 2 year certificate, and closed it after 18 months. You would lose an amount equal to 12 months of interest at the time of closing.