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Community: Investing Wiki

Term Of The Hour

CD penalty fees: Original post by Ciaran John of Demand Media When you establish a certificate of deposit (CD), you agree to lend money to a financial institution. However, the financial institution has the right to assess a penalty fee if you close your account before the end of the CD term. Penalty fees vary and can cut into your principal as well as interest, although some banks offer penalty free CDs.

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