Page 67

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 67 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” institution whereby the individual agrees to leave funds on deposit for a specified period and the financial institution agrees to pay interest at a specified rate for that period. Certificates of Deposit (CDs) and savings certificates are common forms of time deposits.

Withdrawal of a time deposit before the specified period expires incurs a penalty, which usually is imposed against the principal. This penalty does not prevent the time deposit from being a resource, but does reduce its value as a resource.

Occasionally, the terms of a time deposit will prohibit early withdrawal.

If the owner of a time deposit cannot under any circumstances withdraw it before it matures, it is not a resource. It becomes a resource, not income, on the date it matures and may affect countable resources for the following month.

Note: If the owner has no access to the interest before the deposit matures, accrued interest is not a resource. Do not count the interest as income in the month the deposit matures but as a resource the month after maturity.

The resource value of a time deposit at any given time is the amount the owner would receive upon withdrawing it at that time, excluding interest paid that month. Generally, this is:

• The amount originally deposited,

• Plus accrued interest for all but the current month,

• Minus any penalty specified on the certificate for early withdrawal.

Examination of a time deposit certificate should reveal:

• The date of maturity,

• The date the funds can be withdrawn without penalties, and

• Any penalties for early withdrawal.

Contact the financial institution that issued the certificate to resolve any questions.