we have a customer who wants to withdraw a specific amount from his cd each month to his checking ( not an IRA). Will we need to figure a penalty on the withdrawn amount each time.
Thanks You for the help

If your CD contract is still in effect I would think a penalty is called for - unless you decide to waive the early withdrawal penalty. In the spirit of customer service you may want to calculate how much the penalty would be on a total closeout vs the total penalty on all the partial withdrawals and possibly save your customer some money.

The penalty may be at least 7 days interest on the amount withdrawn. This is not waivable within the first 6 days (except under specific circumstances) and when a withdrawal is made, that clock restarts. The question indicated this is a monthly event but if it were on the 30th and then the 3, it couldn't generally happen.

You should evaluate the income from the penalties and the work involved and help the consumer decide if it is worth it to you and them. They're turning this into a transaction account. It is possible this is only for bragging rights of saying "I have a CD." But the bank is losing money with all the transactions/transfers.