Which statement is NOT true about certificates of deposit?

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Multiple Choice

Which statement is NOT true about certificates of deposit?

Explanation:
Certificates of deposit lock your money away for a fixed period in return for a fixed interest rate. They have a defined maturity date, and they’re considered low risk investments because the principal is protected as long as you hold to the term. The trade-off is liquidity: accessing the funds before the maturity date usually carries a penalty that reduces earnings or even some of the principal. That’s why the idea that you can withdraw before maturity without penalty isn’t true.

Certificates of deposit lock your money away for a fixed period in return for a fixed interest rate. They have a defined maturity date, and they’re considered low risk investments because the principal is protected as long as you hold to the term. The trade-off is liquidity: accessing the funds before the maturity date usually carries a penalty that reduces earnings or even some of the principal. That’s why the idea that you can withdraw before maturity without penalty isn’t true.

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