How to Dematerialize an Existing Certificate of Deposit

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Dematerializing an existing certificate of deposit, or CD, will often result in financial penalties for the early withdrawal of CD investment money. Consider leaving a CD in the bank until it matures with advice from a registered financial consultant in this free video on personal finance and money management.

Part of the Video Series: Personal Finances & Money Management
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Video Transcript

This is financial adviser Patrick Munro talking about how to dematerialize an existing certificate of deposit. When an individual goes to a bank and asks for a CD or otherwise known as a certificate of deposit, the bank has various terms on their CD and interest rates that are different as well. And that creates a framework on which you will be receiving interest on your money. Well if you decide to dematerialize that specific framework because of an emergency, certain things will happen. There will be a penalty put upon your money from taking it out of the CD before it's matured in other words. It's best to leave your CD in the bank under the terms and conditions that you opened it up under because then you won't have to suffer a penalty when you dematerialize the existing terms of the certificate of deposit. However because banks are federally mandated and emergencies do happen, the fees have to be clearly pronounced on your certificate of deposit paperwork. So make sure that they money that you place in a CD is not your emergency money, always make sure you have money to fall back on. This is financial adviser Patrick Munro talking about how to dematerialize an existing CD.


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