American Funds ®

How to Use Your Account

Selling Shares

Get information about the ways you can withdraw shares. 

You may withdraw money from your account at any time, although online and phone redemptions are not available for certain types of accounts. You should always talk to your financial professional before selling shares. He or she can offer advice and help you make decisions that fit your long-term financial plan.

You can sell shares on our website or by contacting us. See Options for Managing Your Account for details. 

When you sell shares, the price you will receive is the next closing net asset value. This value may be more or less than your original purchase price, so please keep in mind that the sale may trigger a gain or loss for tax purposes.

The maximum daily redemption amount is $125,000 per shareholder. Redemption checks will be mailed to the address on your account, provided that address has not changed in the last 10 days. If sending funds directly to a bank account, any new instructions or updates will be subject to a 10-calendar-day hold before using this option. 

Redemption checks will be mailed the next business day if the request is received before 4:00 p.m. Eastern time, the close of the New York Stock Exchange®. If you have enrolled in FundsLink®, the redemption amount will be automatically deposited into your bank account within 3 business days.

30-Day Purchase Block Period

As described in each fund's prospectus, if you exchange $5,000 or more from a fund, our purchase-block policy requires that you wait 30 days before making another purchase or exchange of $5,000 or more to that fund. The purchase-block policy does not apply to American Funds Money Market Fund® and the American Funds Target Date Retirement Series®.

Selling Class B and Class 529-B Shares

Class B and Class 529-B shares have a contingent deferred sales charge (CDSC) that you will pay only if you sell shares within the first 6 years of each purchase.

Class B and Class 529-B Share Contingent Deferred Sales Charges

Year Sold

1

2

3

4

5

6

CDSC

5%

4%

4%

3%

2%

1%

The CDSC for Class B shares is waived for death, disability, certain exchanges of shares, tax-free returns of excess contributions to IRAs, required retirement plan distributions (after age 70½), the complete termination of a trust upon the occurrence of a particular event as specified in the trust document, the complete termination of a trust upon the death of the trustor/grantor or beneficiary, and only if such termination is specifically provided for in the trust document, and systematic withdrawal programs up to 12% of account value per year. The CDSC for 529-B shares is waived for the beneficiary’s death, post-purchase disability and receipt of scholarship. Class B shares are not available for certain types of employer-sponsored retirement plans.

If you specify a dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any CDSC, equal the amount requested.

Class B and Class 529-B shares carry higher annual expenses than Class A and Class 529-A shares for the first 8 years. After 8 years, Class B and Class 529-B shares convert to Class A and Class 529-A shares, respectively.

Selling Class C and Class 529-C shares

Class C and Class 529-C shares have a 1.00% contingent deferred sales charge (CDSC) that you will pay only if you sell shares within the first year of each purchase. The CDSC for Class C shares is waived for death, post-purchase disability, certain exchanges of shares, tax-free returns of excess contributions to IRAs, automatic redemptions that do not exceed 12% of the account value, the complete termination of a trust upon the occurrence of a particular event as specified in the trust document, and certain retirement distributions (after age 70½). The CDSC for 529-C shares is waived for the beneficiary’s death, post-purchase disability and receipt of scholarship.

If you specify a dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any CDSC, equal the amount requested.

Class C and Class 529-C shares carry higher annual expenses than Class A and Class 529-A shares for the first 10 years. After 10 years, Class C shares convert to Class F-1 shares. Class 529-C shares do not convert.

Establishing an Automatic Withdrawal Plan

You can make automatic withdrawals of $50 or more. The money can be deposited in your bank account, or you can have a check sent to someone else.

Establish an automatic withdrawal plan by filling out the applicable form. 

Once you’ve linked your bank account to receive electronic deposits, you can log in to your account and click the Automatic Plans button next to the appropriate account to add or update an automatic withdrawal plan. You can contact your financial professional or call us at (800) 421-4225 if you need assistance.

Dividends and Capital Gains

Dividends and capital gains are reinvested in your account. However, you can choose to have these distributions deposited to your bank account or mailed by check to someone else.

Go to dividend and capital gains options to make changes to your distribution options.

Money Market Checks

You can write checks for $250 or more against your Class A share account(s) in American Funds Money Market Fund®.

Your money continues to accrue daily dividends until the checks clear the fund’s bank. Each month, you will receive photo images of your cleared checks on 8" x 11" statements.

To set up check-writing privileges, please contact your financial professional or call us at (800) 421-4225. A book of 20 checks will be mailed, generally within 3 weeks. Check-writing privileges are not available for Class B or Class C share accounts.

Note: For your security, you must wait 10 calendar days to order money market checks after updating your address, name or other account registration information.

IRA Distributions

You can sell shares from your Capital Bank and Trust Company (CB&T) traditional, Roth, SIMPLE and SEP/SAR-SEP IRA on our website. Call us at (800) 421-4225, or mail the appropriate distribution form from the Retirement Savings Account Forms page.

CollegeAmerica® 529 and Coverdell Education Savings Account Distributions

You can sell shares from your CollegeAmerica 529 and Coverdell Education Savings Account on our website by visiting Your Accounts. You can transfer withdrawals directly into the checking or savings account linked to the CollegeAmerica account, or have a check sent to the mailing address on file. You can also call us at (800) 421-4225 or mail the appropriate distribution form from the Retirement Savings Account Forms page. 


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.  

An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.  

Depending on your state of residence, there may be an in-state plan that offers tax and other benefits not available through CollegeAmerica.   Before investing in any state's 529 plan, investors should consult a tax advisor. 

American Funds Money Market Fund Class A shares is the only share class in the American Funds offering check-writing privileges. It is also the only share class that can be exchanged into certain other share classes of other American Funds. 

If withdrawals from 529 plans are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. 

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.