Can I redeem my index-linked Certificate of Deposit (CD) before its maturity date?
It may be possible, but there are usually penalties.
There may be no active secondary market for an index-linked CD. If early redemption is available, penalties (including loss of principal) can be significant.
Index-linked CDs are not designed to be a short-term investment, so an investor should consider whether he or she is in a position to hold the index-linked CD to maturity.
Last Reviewed: October 2020
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