Closing a Certificate of Deposit (CD) account with Bank of America can seem like a straightforward task, but there are several important considerations and steps to follow to ensure a smooth process and avoid unnecessary penalties. Whether your CD is maturing soon or you need to access your funds early, this comprehensive guide will walk you through everything you need to know.
Are You Ready to Close Your Bank of America CD? Let's Find Out!
Before we dive into the nitty-gritty, let's figure out where you stand. Is your CD about to mature, or do you need to access those funds now? Understanding your situation is the first crucial step to closing your Bank of America CD.
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| How To Close A Cd Account Bank Of America |
Step 1: Understand Your CD's Status – Maturity vs. Early Withdrawal
The most significant factor determining how you close your CD account and any potential costs involved is whether it has reached its maturity date.
Sub-heading: CD at Maturity
A Certificate of Deposit is designed for you to keep your money locked in for a specific term, in exchange for a fixed interest rate. When that term ends, your CD "matures." Bank of America, like most banks, will send you a maturity notice approximately 30 days prior to the maturity date (for CD terms of 30 days or more). This notice is your cue to act!
During the grace period (typically 7-10 days after maturity), you have several options without incurring any penalties:
- Renew the entire CD: Your funds (principal + earned interest) are automatically rolled into a new CD for the same or a similar term, at the current interest rates. This is often the default option if you take no action.
- Renew a partial amount: You can withdraw some funds and roll over the remainder into a new CD.
- Withdraw all funds: This is the option you're looking for if you want to close the account entirely. The funds can be transferred to another Bank of America account or sent to you.
Key takeaway: If your CD is maturing, the process is generally straightforward and penalty-free, provided you act within the grace period.
Tip: Make mental notes as you go.
Sub-heading: Early Withdrawal – The Cost of Accessing Funds Sooner
Life happens, and sometimes you need your money before your CD matures. While it's possible to close a CD early, be prepared for an early withdrawal penalty. This penalty is designed to compensate the bank for the interest you committed to earning.
Bank of America's early withdrawal penalties vary depending on the original term of your CD:
- For Flexible CDs: A penalty of 7 days' interest is imposed for early withdrawals within the first 6 days of the account term (or within the first 6 days following any partial withdrawal).
However, for a Flexible CD, the early withdrawal penalty is typically waived for withdrawals made after this initial 6-day period, as long as it's not within the first 6 days following a partial withdrawal. This is a key feature of the "Flexible CD." - For other CD types (Featured CD, Fixed Term CD):
- Less than 90 days: All interest earned on the amount withdrawn or 7 days of interest on the amount withdrawn, whichever is greater.
- 90 days up to 12 months: 90 days of interest on the amount withdrawn.
- 12-60 months: 180 days of interest on the amount withdrawn.
- 60 months or longer: 365 days of interest on the amount withdrawn.
- Less than 90 days: All interest earned on the amount withdrawn or 7 days of interest on the amount withdrawn, whichever is greater.
It's crucial to understand that if your account hasn't earned enough interest to cover the penalty, the remainder of the penalty will be deducted from your principal. This means you could get back less than you initially invested. Always refer to your original Deposit Agreement and Disclosures for the exact terms applicable to your specific CD.
Step 2: Gather Necessary Information and Documents
Regardless of whether your CD is maturing or you're withdrawing early, having the right information at hand will make the closure process much smoother.
Sub-heading: Essential Information to Have Ready
- Your CD Account Number: This is paramount.
- Your Personal Identification: A valid government-issued photo ID (e.g., driver's license, passport). If you're closing in person, you might need two forms of ID.
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Contact Information: Your current mailing address, phone number, and email address should be up-to-date with Bank of America. They will send a confirmation once the account is officially closed.
- Details of Your Desired Destination Account: If you're transferring funds, have the routing and account number of the receiving account ready (whether it's another Bank of America account or an external bank).
Sub-heading: Important Documents to Review
- Your Original CD Agreement and Disclosures: This document contains the specific terms, maturity date, grace period, and early withdrawal penalties for your CD. It's your definitive guide.
- Maturity Notice (if applicable): If your CD is maturing, the notice from Bank of America will outline your options and the grace period.
Step 3: Choose Your Closure Method
Bank of America offers a few ways to close your CD account. The best method for you will depend on your situation and preference.
QuickTip: Scan the start and end of paragraphs.
Sub-heading: Option 1: In Person at a Financial Center (Recommended)
This is often the most efficient and secure way to close a CD, especially if you have questions or a complex situation.
- Schedule an Appointment: While not always required, scheduling an appointment ensures you'll be able to speak with a personal banker without a long wait. You can typically do this online or by calling customer service.
- Bring All Documents: Carry your valid government-issued photo ID, SSN/ITIN, and your CD account number. If it's a joint account, all account owners should be present with their respective IDs.
- Speak with a Personal Banker: Explain that you wish to close your CD account. They will review your account details, inform you of any applicable penalties (if closing early), and guide you through the necessary paperwork.
- Receive Your Funds: You can typically choose to have the funds transferred to another Bank of America account, wired to an external bank (fees may apply), or receive a cashier's check.
Sub-heading: Option 2: By Phone (Convenient for Simple Closures)
If you're unable to visit a branch, calling Bank of America's dedicated CD & IRA customer service line is a viable option.
- Dedicated CD & IRA Customer Service Number: Call 888-827-1812.
- Hours: Monday-Friday 8 a.m.-9 p.m. ET, Saturday 8 a.m.-8 p.m. ET.
- Be Prepared for Verification: The representative will ask you several security questions to verify your identity. Have your account number handy.
- Clearly State Your Intent: Inform them you want to close your CD account and specify whether it's at maturity or an early withdrawal.
- Discuss Fund Disbursement: Tell them how you'd like to receive your funds (transfer to another account, check by mail, etc.).
- Confirm Details: Ensure you confirm all details of the closure, including any penalties and the expected timeframe for fund disbursement.
Sub-heading: Option 3: By Mail (Least Recommended for CDs)
While Bank of America generally allows account closures by mail for checking/savings, it's less common and less recommended for CDs due to the specific terms and potential penalties involved. If you must use this method:
- Write a Formal Request Letter:
- Include your full name, address, and CD account number.
- Clearly state your intention to close the CD account.
- Specify whether it's at maturity or an early withdrawal.
- Provide clear instructions on how you want the funds disbursed (e.g., transfer to specific account number and routing number, or mail a cashier's check to your address).
- All account owners must sign the letter.
- If your account balance is more than $25,000, your letter will also need to be notarized.
- Mail Address for Account Closures:
- Bank of America
- FL1-300-03-15
- PO Box 25118
- Tampa, FL 33622-5118
- For overnight delivery, inquire with Bank of America for the physical address.
- Keep Records: Send the letter via certified mail with a return receipt requested so you have proof of delivery.
Step 4: Finalize the Closure and Monitor Your Account
Once you've initiated the closure, there are a few more steps to ensure everything is handled correctly.
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Sub-heading: Confirm All Transactions Have Posted
Before you request to close, ensure all interest payments have posted and there are no pending transactions. This avoids complications and ensures you receive all earned interest.
QuickTip: Break down long paragraphs into main ideas.
Sub-heading: Receive Confirmation
Bank of America will typically send you an email once your account is officially closed, provided they have your email address on file. You will also receive a final statement in the mail.
Sub-heading: Monitor Your Funds Transfer
If you've opted to transfer funds, monitor your receiving account to confirm the funds have arrived. The timeframe can vary depending on the transfer method (e.g., internal transfers are usually instant, while external transfers or mailed checks take longer).
Step 5: What to Expect After Closure
After your CD account is officially closed:
- You will no longer earn interest on the CD.
- You will receive a final statement for your records.
- No further transactions will be permitted on that account.
Frequently Asked Questions (FAQs)
How to check my Bank of America CD maturity date?
You can find your CD maturity date by logging into your Bank of America online banking, checking your most recent CD statement, or by calling Bank of America's CD & IRA customer service at 888-827-1812.
How to avoid early withdrawal penalties on a Bank of America CD?
The primary way to avoid early withdrawal penalties is to wait until your CD matures and close it during the grace period. Bank of America's "Flexible CD" offers some penalty waivers after an initial short period, but for standard CDs, penalties apply to early withdrawals.
Reminder: Short breaks can improve focus.
How to transfer funds from a closed Bank of America CD to another bank?
When closing your CD, inform the Bank of America representative that you wish to transfer the funds to an external bank. You'll need the routing number and account number of your receiving bank. This can be done in person or over the phone.
How to calculate the early withdrawal penalty for my Bank of America CD?
The penalty calculation varies by CD term. For terms less than 90 days, it's generally 7 days of interest or all interest earned (whichever is greater). For longer terms (e.g., 12-60 months), it's typically 180 days of interest. Refer to your specific CD's Deposit Agreement and Disclosures or call Bank of America directly for an exact calculation.
How to know if my Bank of America CD automatically renews?
Bank of America typically sends a maturity notice approximately 30 days before your CD matures, outlining your options, including automatic renewal. Most CDs will automatically renew into a new CD for a similar term if you take no action during the grace period.
How to close a Bank of America CD if I am not in the U.S.?
If you are outside the U.S., your best option is to call the dedicated CD & IRA customer service line at 888-827-1812 (be aware of international calling charges). They can guide you through the process, which may involve mailing a notarized request.
How to find my Bank of America CD account number?
Your CD account number can be found on your CD statements, by logging into your Bank of America online banking, or by contacting customer service and verifying your identity.
How to handle a joint Bank of America CD closure?
For joint CD accounts, generally all account owners need to be present and provide identification if closing in person. If closing by mail, all account owners must sign the request letter.
How to get a cashier's check for my Bank of America CD funds upon closure?
When you close your CD in person or over the phone, you can request that the funds be disbursed as a cashier's check. This check can then be mailed to your address or picked up at a branch.
How to get help if I have issues closing my Bank of America CD?
If you encounter any difficulties, the best course of action is to call Bank of America's CD & IRA customer service line at 888-827-1812 or visit a local financial center to speak with a personal banker directly.
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