Another key advantage of investing in CDs is that the FDIC insures deposits at member banks and credit unions up to the maximum amount allowed by law. Is early withdrawal possible, and what is the penalty? She recommends sticking with borrowers with AAA ratings. Liquid or «No Penalty» CDs. If you do nothing, your money will most likely be reinvested into another CD with the same term as the one that just matured. Banking Certificates of Deposit.