When liquidating a traditional certificate of deposit (CD) prior to maturity, the owner:

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When liquidating a traditional CD prior to maturity, the owner must return it to the issuing institution. Typically, the institution will calculate and pay out any accrued interest to the owner at the time of the liquidation. There is no requirement to repay the interest due on the CD or to refund the difference in face value and market value. The owner is also not required to claim interest earned by the bank by investing the CD amount or deposit the equivalent amount in a savings account.

When Liquidating a Traditional Certificate of Deposit (CD) Prior to Maturity