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.
If you pull out early, banks typically charge you a penalty that amounts to some of the interest you would have earned if you held the CD to maturity. You might see it quoted as â90 days of interestâ for early withdrawal. There is no maximum penalty amount, so make sure you read the fine print. A sample penalty schedule might look like: 11 month CDs or shorter charge three monthsâ worth of interest. 12 to 59 month CDs charge six monthsâ worth of interest. 60 month or longer CDs charge 12 monthsâ worth of interest.