You can take money out of your certificate of deposit ("CD") before the maturity date, but you are subject to penalties for removing funds earlier from your account.

When a CD matures, you can take your money and re-invest in another CD or roll it over into the same CD for a new term. You can use the money in any way that you choose with no tax penalty.

Nationwide, the most common penalties on an early withdrawal are loss of several months of interest. Institutions that invest your CD will try to discourage an early withdrawal. CD terms vary and banks are in constant competition all the time. If the penalty is too little, they have found that their customers will pull out their cash and will purchase new CD’s offered at better rates, by another institution.

Consultants recommend to customers to shop around before they buy. Always review what the penalties will be in the event you need to cash out early. Be positive that you are comfortable with the length of time your money is invested, and that the amount you have chosen is able to go untouched.

www.Bankrate.com - good information for the consumer.

www.sec.gov/answers/cds.htm - advice and tips from the SEC site

www.wikipedia.com - general information on CDs

www.schwab.com - rate information on CDs