CD-Type Annuities - Early Withdrawal

As with most time related interest rate investments, CD-type annuities have surrender adjustments if they are liquidated early. The first type of adjustment is the surrender penalty. It is simply an early withdrawal charge. The second type of early withdrawal adjustment is known as the market value adjustment or MVA. Unlike the surrender penalty, the market value adjustment may be in your favor or not in your favor. To understand early withdrawal adjustments, let’s take a look at each.