Withdrawals Before Maturity. Withdrawals made within the first 6 calendar days of deposit must be charged a minimum of 7 calendar days’ simple interest on the amount withdrawn. There are penalties for withdrawals of principal before the maturity date of a Certificate of Deposit. On deposits with a term of less than 1 year, the penalty for early withdrawal is equal to 91 calendar days’ interest on the amount withdrawn. On deposits with a term of 1 year or more, the penalty for early withdrawal is 182 calendar days’ interest on the amount withdrawn. (Penalties may differ for Certificates of Deposit that were opened at another banking institution but have since been transferred to Eastern Bank. The original terms are grandfathered until the first renewal date following the Eastern Bank acquisition, at which time the terms of this Agreement will apply.) Early withdrawal penalties may be waived for withdrawals requested after the death of the depositor; after the depositor is declared legally incompetent to manage his or her affairs; or, on a Retirement CD, after the depositor has attained the age of 59½ or become disabled. Interest posted to the account may be withdrawn without penalty before maturity on CDs with terms equal to or greater than 12 months. However, the annual percentage yield assumes that interest remains on deposit until maturity, so a withdrawal of interest will reduce earnings. CDs with maturities of less than 12 months accrue interest, but it is not paid until maturity. If the withdrawal is made prior to maturity the interest will not be paid.
Withdrawals Before Maturity. A Certificate of Deposit (“CD”) will be subject to a penalty for a withdrawal of principal before the maturity date, which will be calculated on the principal amount withdrawn at the interest rate in effect on the account on the withdrawal date: • For a CD with a term of less than three months, the early withdrawal penalty will be an amount equal to 30 calendar days of interest on the amount of principal withdrawn; • For a CD with a term that is three months or more and less than 12 months, the penalty will be an amount equal to 91 calendar days of interest on the amount withdrawn; and • For a CD with a term of 12 months or more, the penalty will be an amount equal to 182 calendar days of interest on the amount withdrawn. For a CD that originated at another financial institution, penalties and other terms may differ. The original terms of such CD will apply until the first renewal following the transfer of the CD to the Bank, at which time the terms of this Agreement will apply. Early withdrawal penalties may be waived by the Bank under certain circumstances, including withdrawals requested after the death of a depositor, after a depositor is declared legally incompetent to manage his or her affairs, or, on a retirement CD, after a depositor has attained the age of 59 1/2 or become disabled. For a CD with a term of 12 months or longer, interest will periodically be posted to the account and may be withdrawn without penalty. However, the annual percentage yield assumes that interest remains on deposit until maturity, so a withdrawal of interest will reduce earnings. For a CD with a term of less than 12 months, interest will not be posted to the account until maturity. In that case, if a withdrawal of principal is made before maturity, accrued interest will not be paid until maturity or closure of the CD.
