Funds in a _____ should not be withdrawn for a stated time period in order to avoid an interest penalty.

Question

Quizplus · Accepted Answer

A certificate of deposit (CD) typically offers a higher interest rate than a checking account or passbook savings account. However, in order to earn this higher rate, the funds must be left untouched for a specified period of time, known as the maturity date. Withdrawing funds from a CD before the maturity date will usually result in an interest penalty. Therefore, a CD is a good choice for someone who has extra funds that they do not need immediate access to and can afford to lock away for a specific period of time.

Funds in a _____ Should Not Be Withdrawn for a Stated