IL SB2765

Financial institutions must provide written disclosure before opening a certificate of deposit (CD) account warning that early withdrawal penalties may exceed interest earned and reduce the original principal amount deposited.

Disclosures must be printed in at least 12-point bold type on the CD agreement or signature card, positioned immediately adjacent to any description of early withdrawal penalties.

Automatically renewing CDs require the disclosure to be included in the renewal notice sent before the grace period begins.

Before processing any early withdrawal, banks must provide a written statement showing the total penalty, applicable fees, and net amount the consumer will receive, with the consumer required to acknowledge receipt before finalizing.

Violations constitute an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act, effective January 1, 2027.