Depositors are penalized for early withdrawal of funds from

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Certificates of deposit (CDs) typically have an early withdrawal penalty, which is a fee charged to depositors who withdraw their funds before the maturity date of the CD. This penalty is put in place because the bank relies on the depositor to keep the funds in the CD for a specific period of time, and the penalty helps compensate the bank for potential losses if the depositor withdraws early.

Depositors Are Penalized for Early Withdrawal of Funds from