Common use of Withdrawals Before Maturity Clause in Contracts

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within the first 6 calendar days of deposit must be charged a minimum of 7 calendar days’ simple interest on the amount withdrawn.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with a term of less than 1 year, the penalty for early withdrawal is equal to 91 calendar days’ interest on the amount withdrawn.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deposits with a term of 1 year or more, the penalty for early withdrawal is 182 calendar days’ interest on the amount withdrawn.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 Interest posted to the account may be withdrawn without penalty before maturity on CDs with terms equal to or greater than 12 months.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. 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within the first 6 calendar days of deposit must be charged a minimum of 7 calendar days’ simple interest on the amount withdrawn.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with a term of less than 1 year, the penalty for early withdrawal is equal to 91 calendar days’ interest on the amount withdrawn.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deposits with a term of 1 year or more, the penalty for early withdrawal is 182 calendar days’ interest on the amount withdrawn.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 originated at another banking institution but have since been transferred to Eastern Bankinstitution. 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 fifty- nine and a half (59½) or become becomes disabled. Interest Withdrawals of 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.