A certificate of deposit (CD) is an interest-bearing deposit account, where funds must remain in the CD account for a certain length of time in order to earn a promised rate of return. East West Bank CDs are offered for a variety of maturity timeframes, ranging from 32 days to 5 years. If funds are withdrawn before the maturity date, an early withdrawal penalty will apply, and your earnings will be reduced.
If applicable, the early withdrawal penalty is first deducted from any interest that has been credited to the CD during the term and then, if necessary, from the principal balance.