If you withdraw funds from a share certificate prior to the maturity date, the early withdrawal penalty will be:
- less than one year = 91 days’ dividends
- 1-3 years = 182 days’ dividends
- greater than 3 years = 365 days’ dividends.
The time frame is based on the original maturity date at the time of purchase. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned on the account. It applies whether or not the dividends have been earned. In other words, if the account has not yet earned enough dividends or if the dividend has already been paid, the penalty will be deducted from the principal.