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Certificates of Deposit (CDs) differ from checking or savings accounts in that they do not charge monthly fees. However, they come with a notable caveat: if you withdraw your money from a CD before its predetermined term expires, you will likely face an early withdrawal penalty. This penalty is typically equivalent to several months' to years' worth of interest that your CD would have earned had you left it untouched until maturity. As a result, it is generally advisable to resist the temptation of accessing your funds from a CD before it reaches its full term. There is one important exception to this rule, which is known as a "no-penalty CD." No-penalty CDs are designed to allow account holders some flexibility. With these CDs, you can withdraw your funds before the maturity date without incurring any financial penalties. This unique feature provides more liquidity and accessibility to your money while still earning a competitive interest rate, making no-penalty CDs a popular choice for those who want a mix of security and flexibility in their savings strategy.