What is a No-penalty CD?

A no-penalty CD is a type of certificate of deposit (CD) that allows you to withdraw your money without penalty, even if the CD has not yet reached its maturity date.

Why would I want a no-penalty CD?

A no-penalty CD can be a good option if you need access to your money before the CD’s maturity date, but don’t want to pay a penalty for early withdrawal.

Are there any downsides to no-penalty CDs?

Yes. No-penalty CDs typically offer lower interest rates than regular CDs. So, if you’re not in a hurry to access …