It started in 1997, when Alain de Botton turned away from writing novels and instead wrote a touching extended essay titled How Proust Can Change Your Life, which became an unlikely blockbuster in the self-helpcategory.
A sample penalty schedule might look like: 1  11 month CDs or shorter charge three monthsâ worth of interest. 2  12 to 59 month CDs charge six monthsâ worth of interest. 3  60 month or longer CDs charge 12 monthsâ worth of interest.
Certificates of deposit allow savers to lock in higher rates of return in exchange for not being able to access their money for a period of time. The risk is that if interest rates rise, CD holders are still stuck in lower-rate products. Anyone purchasing CDs should check on the penalty for early withdrawals, in case it makes sense to withdraw money early, suggests Richard Barrington, senior financial analyst at MoneyRates.com.