If I sign up for a 5-year CD at a bank within th that period of time can I transfer the funds to another bank without a penalty, other than the banks'

I was under the assumption that with CDs you put your money in and can't touch it until that time is up without major penalties assessed to it.

If you take the money out of a cd for ANY reason before the mature date, you will be fined.

7/26/2008

I should have specified that the question was about IRA cds, not regular savings CDs. The question is with an IRA CD can I change banks on the anniversary of a 12-month period?

Thank you

This answer was edited by a moderator 165 days ago.

Reason: Removed Email

Sidelko's answer remains the same. Even if your CDs with the bank are in an IRA account, you can not "redeem," or "cash in" the CDs without incurring a penalty. The same rules apply for CDs whether they are in an IRA or not. If you want more flexibility, you should stick with the CDs that mature in one year. It is probable that interest rates will start rising soon because of inflation. With that in mind, it doesn't seem to make much sense tying up your money in 5-year CDs.