The type of fee charged for withdrawing money from a CD before the date of maturation is Early redemption fee.
We have to determine the type of fee charged for withdrawing money from a CD before the date of maturation.
We have given
A. FDIC fee
It required the largest taxpayer bailout in the year 2008 financial crisis, explained in a footnote on its schedule of fees for business accounts in the nation's states that it charges an FDIC insurance fee at the annual rate of 13 cents per $100.
It related to insurance so it is not correct option.
B. Early redemption fee
The fee may be required to make to a lender if we pay off a loan or mortgage before the scheduled term of the credit facility.
So the Banks and credit unions often charge a fee if you withdraw money before maturity.
Therefore the Option B is correct.
C. Liquidity fee
This is nothing but the liquidity facility providers that the borrower may from time to time agree to pay.
Therefore this is not correct option
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