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Whats the difference between the Compensating Fee and the Early Withdrawal Fee?

April 26, 2017compensating early fee withdrawal

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Whats the difference between the Compensating Fee and the Early Withdrawal Fee?

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The Compensating Fee is designed to protect the bank during periods of increasing interest rates. The fee for withdrawing funds before the account’s maturity date is the greater of the Early Withdrawal Fee or the Compensating Fee.