FYI: If the Federal Reserve acts as expected next week to raise interest rates, savers will be on the lookout for certificates of deposit offering better yields.
But first, consumers need to carefully consider what sort of penalty they may pay, if they withdraw money from a C.D. early to put it in a new certificate with a marginally higher rate, said Greg McBride, an analyst with Bankrate.com.
Such penalties pack more of a wallop when rates are low, as they have been for the last seven years, since earnings are so paltry in the first place. Plus, banks are imposing stiffer penalties on early withdrawals from some longer-term C.D.s, a recent analysis by Bankrate found.
Regards,
Ted
http://www.nytimes.com/2015/12/10/your-money/when-seeking-better-cd-yields-can-be-costly.html?ref=topics&_r=0
