CD accounts are set to auto-renew at maturity, but there is a grace period (a period of time following the maturity date of the account) during which you can make a deposit to or withdrawal from the account, change the term of the account or cancel the account.
For CD account terms of 7-27 days, there is a grace period of 1 calendar day.
For CD account terms of 28 or more days, there is a grace period of 7 calendar days.
Please note that a deposit, withdrawal or term change can be made only once during the grace period.
CD accounts are set to auto-renew at maturity. Please schedule an appointment, visit a financial center or call a customer service representative at 888.827.1812 (Mon-Fri 8 a.m.-9 p.m. or Sat 8 a.m.-8 p.m., all times ET) if you have any questions.
Interest begins to accrue on the day your CD account is actually opened, not the day on which your form for opening the account is submitted. Your account will be opened at the interest rate that was effective the day you submitted your form.
Yes. When you open a CD account, you're agreeing to keep your money in the account for a specific period of time. If you want to withdraw your money earlier, you will be subject to the following penalties:
For CDs with terms of less than 90 days: all interest earned on the amount withdrawn or 7 days of interest on the amount withdrawn, whichever is greater
For CDs with terms of 90 days up to 12 months: 90 days of interest on the amount withdrawn
For CDs with terms of 12-60 months: 180 days of interest on the amount withdrawn
For CDs with terms of 60 months or longer: 365 days of interest on the amount withdrawn
In addition to these penalties, you will also pay the amount of any cash bonuses you received when you opened or reinvested the account. For complete information about early withdrawals, please refer to page 10 of the Deposit Agreement and Disclosures document.
An IRA is an individual retirement account that may provide either a tax-deferred or tax-advantaged way for you to save for retirement. There are many different types of IRAs –Roth, Traditional and rollover IRAs are the most common. Some people use the money in their IRA to invest in mutual funds or stocks while others may choose CDs or money market savings. Each IRA has certain eligibility requirements and each has unique features. Finding the right IRA for you will largely depend on which IRAs you’re eligible for and which one offers the benefits that are most important to you. Learn more about IRAs
While Roth and Traditional IRAs are both good choices when saving for retirement, there are many differences to keep in mind:
Earnings in a Roth IRA are not subject to federal taxes. Earnings in a Traditional IRA are subject to taxes, but taxation is deferred until money is withdrawn in retirement, at which time the earnings are taxed at your current rate.
Contributions to a Roth IRA can be withdrawn penalty-free at any time. Withdrawals from a Traditional IRA before the age of 59½ are subject to taxes and a 10% federal penalty.
Anyone with earned income under the age of 70½ can contribute to a Traditional IRA. Contributions to Roth IRAs are restricted to those who do not exceed certain modified adjusted gross income limits.
Traditional IRA contributions may be tax-deductible. Roth IRA contributions cannot be deducted.
If you’re under age 50, you can contribute up to $6,000 in 2019. If you are age 50 or above, you can contribute an additional $1,000, bringing the total allowable contribution amount to $7,000. Contributions must be made prior to each year's tax return deadline for the corresponding year (typically April 15).
A rollover IRA is a retirement account specifically designed to receive transfers from a previous employer-sponsored retirement plan such as a 401(k) or 403(b). Rolling over retirement plan funds provides several benefits including:
You can consolidate your retirement accounts for simplified management and greater control
You get a wider variety of investment choices, enabling you to find investments that best fit your financial goals and personal preferences
You maintain the tax-deferred status of your retirement savings while allowing your funds the opportunity to grow
It’s all about where the money is coming from. If your money is coming from an employer-sponsored savings plan such as a 401(k), you’ll open a rollover IRA. If your savings are already in a Traditional or Roth IRA, you simply open a new Traditional or Roth account and transfer your deposits or investments.
With a direct rollover, the check from your employer-sponsored plan is made out to the financial institution where you open your IRA. Since this money is deposited directly from the 401(k) to the IRA, no taxes are withheld.
With an indirect rollover, the check from your employer-sponsored plan is made payable to you and your former employer withholds a mandatory 20% for taxes. You have 60 days to deposit these funds into an IRA, and must also deposit the 20% that was withheld yourself, otherwise the 20% withheld will be considered a taxable distribution and only 80% will continue to grow tax-free or tax-deferred. In addition, if you are under age 59½ you would be subject to an additional early withdrawal penalty of 10%.
Absolutely. Once you've opened a rollover IRA it's easy to move your old IRA into it with assistance from our Retirement Help Desk by calling 888.827.1812 (Mon–Fri 8 a.m.-9 p.m. or Sat 8 a.m.– 8 p.m., all times ET).
Executing a Power of Attorney (POA) document is important for a wide range of reasons. From a financial perspective, your designated Attorney-in-fact (also known as Agent) would be able to act on your behalf in situations such as filing taxes, selling property, refinancing a mortgage or cashing checks. You should not execute a power of attorney unless you have complete faith in your designated Attorney-in Fact (Agent). As a convenience, Bank of America customers, in most states, may establish a Limited Power of Attorney for banking transactions by contacting your local financial center. However, your personal attorney can provide you with a General Power of Attorney form, which may cover many types of assets and transactions.
Note, to set up a Power of Attorney in the financial center, the Attorney-in-Fact (Agent) will need to be present to sign a Power of Attorney Signature Card Addendum for each account you wish to give them authority. As the Principal who executed the Power of Attorney, you may revoke it at any time, but you would need to inform the bank of any changes. A Power of Attorney terminates automatically at the death of the Principal.
*Currently, an Attorney-in-Fact cannot access a Principal’s accounts via Online Banking. However, access is available through the contact centers and financial centers.
Find the CD account to help with your savings goal