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Is there a penalty if I close my Alliant certificate early?

When you open your Alliant certificate, you choose a maturity date of 12-48 months or 60 months. If you need to withdraw funds before the maturity date, you may incur an early withdrawal penalty, per the table below.

Term of Certificate Early Withdrawal Penalty
(days of dividends lost)
17 months or less Number of days the certificate is open, up to 90 days *
18-23 months Number of days the certificate is open, up to 120 days *
24-48 or 60 months Number of days the certificate is open, up to 180 days *
During 7-day grace period for new certificates 7 days (no dividends are earned). A penalty will be applied from the principal balance.

*Examples of early withdrawal penalties for 18-month certificate:

  • If you close your certificate after 100 days, the penalty would be equivalent to all the interest you earned.
  • If you closed your certificate after 150 days, the penalty would be equivalent to 120 days of dividends, and you would keep all your principal plus 30 days of dividends.

Exceptions. There may be exceptions to early withdrawal penalties. For example, if you transfer money from an Alliant certificate to an investment in your Alliant Retirement & Investment Services account, the penalty may be waived.

Dividend Withdrawals. If you opt for dividend withdrawals (i.e., you choose to receive your interest payment directly each month rather than auto-depositing it back into your certificate to earn compound interest) and you then withdraw your certificate principal before your certificate matures, you are subject to early withdrawal penalties per the schedule listed above. However, because the penalty is normally deducted from your certificate’s earnings, and your earnings will have already been paid out to you, the penalty will be withdrawn from your principal instead.

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