Registered Nurse RN

Registered Nurse, Free Care Plans, Free NCLEX Review, Nurse Salary, and much more. Join the nursing revolution.

  • RN
    • Nursing Clinical Skills
  • Nursing Videos
  • Blog
  • Nursing School
  • Nursing Care Plans
  • Nursing Quizzes
  • Nursing
  • Nursing Jobs
  • NCLEX Review
  • Store

How to Close a Certificate of Deposit CD Account

Closing a Certificate of Deposit (CD) Account–Introduction

CDs are great investments for investors saving for their futures. Whether the future is next month or next year, investors trust CD accounts as a reliable way to reach their goals. When the time comes to make those dreams come true, investors must begin the process to receive the money from their CDs. The  withdrawal process is usually simple and easy when investors must close their accounts. Whatever the reason, issuers are there to help them when they need them.

Reasons to Close a Certificate of Deposit CD Account

Investors may withdraw their money from their CDs for a number of reasons, including:

  • To fund another investment – Investors may decide to withdraw their money to try other investment ventures. The stock market or money market accounts are other investments that they may consider. If interest rated decrease in value or some other investment opportunities increase in value, investors can benefit by withdrawing their money and closing their accounts.
  • To receive better rates and terms – Interest rates change very often. Investors may want the opportunity to withdraw their money and close the CDs so that they can get better rates and terms. Issuers offer competitive rates at times to persuade investors to invest their money in their CDs. Investors can receive the better rates and terms by closing the CD accounts and moving the money to other accounts.
  • To withdraw the money when someone dies – The person named as beneficiary on CD accounts has the legal right to withdraw the money and close the account if they choose to do so. The beneficiary may want to withdraw the money to spend it, save it, or invest it. As long as the beneficiary waits until the CDs mature to close the accounts, they can have the entire investment to use as they please.
  • To take over the account when someone is rendered mentally incompetent – Mentally incompetent people who do not have the ability to take care of themselves may rely on their guardian to take care of them. The person who has power of attorney has the authority to take over the accounts. The guardian may have to close the accounts to care for those who are mentally incompetent.
  • To close an account that is no longer needed – Once investors reach their saving goals, they may no longer need the accounts. Investors who have reached retirement age may want to close the CD accounts when they retire. Additionally, investors who have saved enough money to make their big purchases may close their CD accounts because they no longer need them.

Steps to Take to Close a Certificate of Deposit CD Account

There are several steps to take when closing CD accounts. Some situations may require different steps. The steps include:

  • Visit the financial institutions – Investors can walk into the bank or credit union that holds their CDs to close the accounts. Issuers will need the account number and driver’s license of the person who owns the accounts. Investors can take their principle and interest at the time they close the accounts. Investors who hold accounts that have not reached maturity may encounter fees that deduct interest and possibly principle as the penalty for early withdrawal.
  • Fax closure forms – Many banks offer the option to withdraw funds by completing an application form. Investors can fax the form to the financial institution in order to close the accounts at some financial institutions. The application may require personal information such as account number, address, telephone number, pin number, and current balance in order to close the account.
  • Call the financial institution – Investors may also be able to close the accounts by contacting the issuers by telephone. Issuers may need specific personal information in order to close the accounts for investors.
  • Close the account online – Investors may have the option to close their accounts online. Online financial institutions may allow investors to track their accounts online. Investors can click on the link on the website to begin the process of closing their accounts.

Beneficiaries may need to produce their driver’s license and the death certificate of the accountholder in order to close the CD accounts. The guardian who has power of attorney may have to produce documents that prove that they have power of attorney over the accounts, and they may have to provide their drivers license in order to close the CD accounts.

Investors may choose to close their CD accounts for a variety of reasons. It is important that they know the steps involved in closing their accounts so that the process is quick and easy.

Please Share:

  • Click to print (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • More
  • Click to share on Reddit (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on Skype (Opens in new window)
Nursing Gear

RSS Latest YouTube Videos

  • Flexion and Extension Anatomy: Shoulder, Hip, Forearm, Neck, Leg, Thumb, Wrist, Spine, Finger
  • Recap a Needle Using the One-Hand Scoop Technique Nursing Skill | Medication Administration
  • Elevation and Depression Anatomy Body Movement Terms (Mandible & Scapula)
  • Car Seat Safety Teaching: Nursing Care & Discharge Pediatric Maternity Nurse NCLEX Review

Recent Posts

  • Benzodiazepines (Anxiolytic and Sedative-Hypnotic) NCLEX Nursing Questions Quiz
  • Flexion and Extension
  • Flexion and Extension Anatomy Quiz
  • One-Hand Scoop Technique

Disclosure and Privacy Policy

This website provides entertainment value only, not medical advice or nursing protocols. We strive for 100% accuracy, but nursing procedures and state laws are constantly changing. By accessing any content on this site or its related media channels, you agree never to hold us liable for damages, harm, loss, or misinformation. See our full disclosure and privacy policy. Copyright Notice: Do not copy this site, articles, images, or its contents without permission.

Important Links

  • Advertise
  • Contact Us

Follow Us on Social Media

  • Facebook Nursing
  • Instagram Nursing
  • Twitter Nursing
  • YouTube Nursing

Get Free Email Updates:

Enter your email address below and hit "Submit" to receive free email updates and nursing tips.

Copyright © 2021 RegisteredNurseRN.com. All Rights Reserved.