You thought the money was safe. Locked away, earning a tidy sum while you ignored it. Then life happens—a transmission blows, a roof leaks, or maybe you just found a better investment elsewhere. Now you're looking at that Chase certificate of deposit and wondering: how much is this going to cost me?
Honestly, the Chase bank cd early withdrawal penalty is one of those things nobody reads the fine print on until they absolutely have to. It's not just a flat fee. It’s a math problem that can, in some cases, eat into your original principal.
Chase is a massive bank. They have rules for everything. When you open a CD, you’re basically making a deal: you give them your cash for a set time, and they give you a guaranteed rate. If you break that deal? They take their cut.
How the Penalty Math Actually Works
It isn't a "one size fits all" situation. The amount of interest you lose depends entirely on the original term of your CD. As of early 2026, Chase generally sticks to a three-tiered system.
- For terms of less than 6 months: You’re looking at a penalty of 90 days of interest.
- For terms between 6 months and 24 months: The hit is 180 days of interest.
- For terms of 24 months or longer: This is the big one—365 days of interest.
Here is the kicker: what if you haven't even earned that much interest yet? Say you put $10,000 into a 12-month CD and need it out after only two months. You’ve only earned 60 days of interest, but the penalty is 180 days.
In that scenario, Chase doesn't just say "oh well." They take the remaining 120 days' worth of interest out of your principal. You actually walk away with less money than you started with. It's a brutal reality of traditional banking.
The 7-Day Rule and Other "Gotchas"
There is a federal law that often catches people off guard. If you withdraw money within the first six days of opening the account (or within six days of a previous partial withdrawal), the bank must charge at least seven days' simple interest. Chase follows this strictly.
Also, don't forget the 10-day grace period. When your CD matures, you have exactly ten days to move that money or change the term. If you miss that window by even a few hours, the CD usually auto-renews. Once it auto-renews, you are back in the "penalty zone" if you try to touch it.
Why the penalty varies by account type
If you have a "Relationship" rate because you linked a Chase checking account, your interest rate is higher. Paradoxically, this means your penalty is also higher in dollar terms. Since the penalty is based on a number of days' interest, a better rate makes the "exit fee" more expensive.
Can You Ever Get the Penalty Waived?
Rarely. Chase isn't exactly known for handing out "get out of jail free" cards. However, there are specific legal situations where the penalty might be waived:
- Death or Mental Incompetence: If the account holder passes away or is declared legally incompetent, the bank generally allows the executor to close the CD without a penalty.
- IRA Distributions: If your CD is held within an IRA and you are over age 59.5 (or meet other IRS criteria), you might avoid the bank's early withdrawal penalty, though you still have to worry about taxes.
- Bank Errors: If you can prove a banker gave you incorrect information during the setup, you might have a shot at a waiver, but you'll need documentation.
Most people aren't in those categories. If you're just "short on cash," you're likely paying the fee.
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Real-World Example: The $25,000 Mistake
Let's look at a quick example. Imagine you have a $25,000 CD with a 15-month term at a 2.00% APY.
The penalty for a 15-month term is 180 days of interest.
$25,000 \times 0.02 = $500$ (annual interest)
$$500 / 365 = $1.37$ (daily interest)
$$1.37 \times 180 = $246.60$ (the penalty)
If you pull that money out for a "better deal" that only earns you an extra $100 in interest over the next six months, you've actually lost money. You have to do the math before you pull the trigger.
Smart Ways to Avoid the Hit
If you’re worried about liquidity, don't put all your eggs in one basket. Many savvy savers use a CD Ladder. Instead of one $50,000 CD for five years, you buy five $10,000 CDs with staggered maturity dates (1-year, 2-year, 3-year, etc.). This way, you always have a "window" opening soon where you can grab cash penalty-free.
Another option is looking into No-Penalty CDs. While Chase's standard offerings are pretty rigid, they occasionally offer featured terms that might have different rules. Always ask for the "Truth in Savings" disclosure before signing.
Moving Forward With Your Cash
Before you close that account, call 1-800-935-9935 or visit a branch. Ask the banker for the exact "payoff amount" as of today. They can tell you the precise dollar amount the penalty will cost you.
If the cost is too high, consider taking a personal loan or using a 0% APR credit card for the emergency instead. Sometimes the interest on a small loan is cheaper than the hundreds of dollars you'd lose in a CD penalty.
Verify your maturity date in the Chase mobile app. Set a calendar alert for 11 days before it matures. This gives you time to think so you don't get trapped in an auto-renewal cycle you didn't want.