Cashing Out a CD? Don’t Make These 3 Mistakes
One of our favorite HYSAs now is the SoFi Checking and Savings (Member FDIC) account. It has no monthly fees and an annual percentage yield (APY) on savings of up to 4.50% with direct deposit. And new SoFi® customers who make qualifying direct deposits can earn a bonus: Earn up to $300 and +0.70% Boost on Savings APY with direct deposit. Terms apply.
To earn a cash bonus and up to 4.50% APY with direct deposit, see our SoFi Checking and Savings (Member FDIC) review to learn more and open an account.
SoFi Checking and Savings
Member FDIC.
Limited-time offer:
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
APY
Rate info
Earn up to 4.50% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.80% APY as of 8/5/25) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too — which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it’s the kind of combo that could make it worthwhile to switch banking relationships.
Open a SoFi Checking and Savings Account
3. Cashing out early without knowing the penalty
Withdrawing your deposit before a CD matures will often cost you 3 to 12 months’ worth of interest. That will erase a lot of your earnings.
Let’s say you have $10,000 in a 12-month CD at 4.50% APY, and you cash out early. Assuming a 3-month penalty, you’ll give up about $112.50 in interest.
Always check your bank’s formula and weigh the penalty against what you’ll gain by moving the money. It’s possible that you’ll earn more by eating the penalty so you can move the cash to a higher-yield account. If not, you should stay put if you can.
And if you want to avoid any early-withdrawal penalties in the future, consider an HYSA or a no-penalty CD.
Make your money count
Have a plan before the grace period starts. Rate-shop, choose the right parking spot for your cash, and act as soon as your CD matures.
If you avoid the pitfalls above, then CDs are among the easiest, safest ways to earn a great interest rate.
