Which type of deposit charges a penalty if funds are withdrawn before scheduled maturity?
A)transaction
B)time
C)savings
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Time deposits, also known as certificates of deposit (CDs), typically charge a penalty if funds are withdrawn before the scheduled maturity date. Transaction deposits, such as checking accounts, do not usually have penalties for early withdrawal. Savings deposits may or may not have penalties, depending on the specific terms of the account. Therefore, the correct answer is B, time deposits.

Which Type of Deposit Charges a Penalty If Funds Are