It started in 1997, when Alain de Botton turned away from writing novels and instead wrote a touching extended essay titled How Proust Can Change Your Life, which became an unlikely blockbuster in the self-helpcategory.
A sample penalty schedule might look like: 1  11 month CDs or shorter charge three monthsâ worth of interest. 2  12 to 59 month CDs charge six monthsâ worth of interest. 3  60 month or longer CDs charge 12 monthsâ worth of interest.
Legally, the only conditions that prohibit banks from charging early withdrawal penalties are your death -- not a pleasant option -- or if you've reached 70 1/2 years old and your CD represents your traditional IRA account, since IRS rules mandate that you must withdraw funds beginning at that age.