Also, you should be reasonably certain that you can stay invested in the fund long enough for
the redemption penalty period to expire.
Not exact matches
When purchasing an MIE security, ask about what the
redemption terms, lock - up
periods or other
penalties are if you want to sell your investment — some MIEs charge early
redemption fees up to 10 % of the value of your investment.
Anytime withdrawal without
penalty unlike a CD which has a minimum holding
period and early withdrawal
penalties; easy
redemption processes, either online or by phone.
The minimum holding
period and
redemption penalties are in place because the U.S. Treasury considers savings bonds as long - term savings vehicles for the average investor.
Just watch out for early
redemption penalties as you get closer to the end of the four - year
period.