When it comes to growing your savings, a CD is as dependable as it gets. You deposit funds into an account, watch the interest accrue, and leave the funds untouched until maturity. That’s why it’s such a reliable way to increase your savings.
Still, it’s important to understand how CDs can be managed and get the most out of interest rates that are typically higher than other types of accounts. Here’s what you need to know.
What are the options with CD interest?
Interest on your Nationwide CD is compounded daily but posted monthly, so you won’t see a difference in interest from day to day, but you will from month to month.
Typically, there are two options for the interest that is paid out: You can let the interest accumulate in the account or you can withdraw the interest on a regular interval.
Nationwide allows you to withdraw interest credited in the term before maturity of that term without penalty. You can withdraw interest anytime during the term of crediting after it is credited to your account.
What are the options when CDs mature?
You will receive a notification of your CD maturity 30 days prior to renewal. You then have a few options to consider:
- Automatic renewal. Your Nationwide CD will automatically renew at maturity for the same term at the annual percentage yield (APY) in effect at the time of automatic renewal.
- Roll over to a new CD. You can easily roll over to another CD with Nationwide at maturity with a different term at the APY in effect at the time of account opening.
- Consider a CD laddering strategy. A CD laddering strategy can be a smart choice if you want to take advantage of CD interest rates while still enjoying regular access to your money. Learn more about CD Laddering Strategy here.
- Withdraw the funds. If, at maturity, you don't want to automatically renew your CD or roll it over to a CD with a new term at Nationwide, you can withdraw your funds. You will have 10 calendar days after maturity to roll over your CD to a new term and APY, if applicable, or withdraw the funds without a penalty. Please call 1-877-422-6569 Monday through Friday from 8 a.m. to 8 p.m. or send us a written request at:
P.O. Box 182049
Columbus, OH 43218-2049
Contact us with your decision. When you receive the CD maturity notification and you do not wish to automatically renew the CD, please call 1-877-422-6569 Monday through Friday from 8 a.m. to 8 p.m.
What are the early withdrawal penalties?
A penalty may be charged for closing a CD before its maturity date. The penalty amount depends on the term of the CD. If your account has an original maturity of at least:
- 3 months, but less than 6 months, the fee will equal 30 days of interest on the amount withdrawn
- 6 months, but less than 24 months, the fee will equal 90 days of interest on the amount withdrawn
- 24 months, but less than 48 months, the fee will equal 180 days of interest on the amount withdrawn
- 48 months or greater, the fee will equal 3601 days of interest on the amount withdrawn
In certain circumstances, such as the death or incompetence of an owner of an account, the law permits – or in some cases requires – the waiver of the early withdrawal penalty. Other exceptions may also apply; for example, if the account is part of an IRA or other tax-deferred savings plan.