Bank CD’s have become a more popular savings vehicles as competition among banks has increased interest rates and the accounts offer security provided by the insurance by the FDIC.  However, a commonly mentioned drawback to CD’s is the early withdrawal penalty.  CD early withdrawal penalties are easily managed and should not be a barrier to sound investing practices, but be advised to read all about a bank CD penalties before making the investment.  Understand how the CD penalty works and how you might be able to avoid paying a penalty or simply determine the appropriate CD term to match your investment time horizon.

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