The penalty is based on the term of the Certificate and how many days the Certificate has been opened.

  • If funds are withdrawn within 6 days of opening, the penalty will be 7 days' dividends, and may reduce principal.
  • On a Certificate with a 3 month term, the penalty is the lesser of dividends earned or 45 days' dividends.
  • On a Certificate with a 4-23 month term, the penalty is the lesser of dividends earned or 90 days' dividends.
  • On a Certificate with a 24 month term or longer, the penalty is the lesser of dividends earned or 180 days' dividends.

 

The early withdrawal penalty is waived if:

  • The Member is withdrawing from an IRA Certificate after reaching 59 1/2 or becomes medically disabled.
  • Any owner of the Certificate dies.
  • An owner is deemed incompetent by a court.
  • The funds are withdrawn on the maturity date or the 10 calendar days following the maturity date.
  • Funds are withdrawn in order to deposit them into an investment product with RCU Investment Services.