How long does it take to get money out of a CD?
If you've locked some cash away in a certificate of deposit (CD) account, you're likely benefitting from the higher interest rates these accounts offer compared to a traditional savings account. But while CDs can help your money grow, they're also known for one big tradeoff: Your funds are generally locked up until the CD reaches maturity. So what happens if you need to withdraw that money? And how long does it actually take to get your hands on it?
The answer depends on your timing. Withdrawing funds from a CD isn't quite as simple as swiping a debit card or making an ATM run. Most CDs have strict terms about when you can take your money out — and if you try to access those funds too soon, it could cost you. That said, once you've hit certain milestones in your CD's life cycle, accessing your funds can be surprisingly quick and easy.
Whether you're planning ahead or considering cashing out early, understanding the timeline for getting your money out of a CD can help you avoid penalties and make smarter decisions about when and how to tap your funds. Here's a breakdown of how long it typically takes to do that.
Lock in one of today's best CD rates now.
How long does it take to get money out of a CD?
In most cases, it takes anywhere from a day to a few business days to withdraw money from a CD, depending on your bank or credit union's processing policies and when you make the withdrawal.
If your CD has reached its maturity date or you're within the grace period that follows, your bank will typically allow you to withdraw your funds or move them to another account without penalty. In these cases, the process is fairly smooth and usually only takes one to three business days, assuming you've submitted the proper request or instructions.
However, if you need the money before your CD matures, the timeline can vary more significantly. Early withdrawals often require you to jump through additional hoops, and in some cases, it could take longer to receive your funds. Plus, there's almost always a financial penalty attached.
Let's take a closer look at each possible scenario.
On the maturity date
When your CD reaches its maturity date, which is the end of its term, that's the easiest window to use to withdraw your money.
Most banks will notify you in advance (typically a few weeks out) that your CD is coming due. Once the CD officially matures, the funds are available for withdrawal. If you've already provided instructions — such as transferring the funds into a linked checking account or reinvesting into a new CD — the bank will usually process your request within one to three business days.
If you don't provide any direction, the bank may automatically roll your CD into a new one with the same term but potentially a different interest rate. That's why it's important to mark the maturity date on your calendar and act quickly if you plan to make a withdrawal.
Compare your top CD offers and lock in a CD rate now.
During the grace period
After a CD matures, there's often a short window of time called a grace period, which usually lasts between a week and 10 days, during which you can still access your funds penalty-free. This is your second-best opportunity to take out your money without paying a penalty. Even if the bank auto-renewed your CD into a new term, many financial institutions allow you to cancel or modify the renewal within the grace period.
If you decide to withdraw during this window, your request will generally be processed in a couple of business days. Just be aware that if you wait too long and miss the grace period, you'll be locked into the new CD term, and getting your money out will once again come with an early withdrawal penalty.
When paying for an early withdrawal
Withdrawing money before your CD reaches maturity is allowed, but it's not free, and it might not be instant.
Each bank sets its own early withdrawal penalty rules, but most will charge you a portion of the interest you've earned (and sometimes part of your principal). The early withdrawal process might also require you to call or visit your bank rather than completing the transaction online.
In terms of timing, early withdrawals can take anywhere from one to several business days to process, especially if the bank needs to review and approve your request manually. Some online banks are faster, while smaller credit unions might take a bit longer to disburse the funds.
If you're thinking about an early withdrawal, it's worth checking your CD agreement or calling your bank to understand both the financial and logistical steps involved because once that penalty kicks in, you might be giving up a lot more than just time.
The bottom line
Getting money out of a CD doesn't have to be complicated, but the timing makes a big difference. If you wait until your CD matures or act during the grace period, you can usually access your funds within a few business days and avoid penalties altogether. But if you're forced to withdraw early, be prepared to wait a little longer — and potentially take a financial hit.
The key takeaway? Know your CD's timeline. Mark the maturity date on your calendar, understand your bank's grace period and weigh the costs of an early withdrawal if you're in a pinch. Planning ahead will make sure you don't lose more than necessary — and helps you get your money when you need it most.
