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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Surrender Charge

Definition:

This applies to annuities. Most annuities require you to keep the investment for a minimum period (usually 7 years). If you surrender the annuity before then, the annuity company will usually charge you 1 - 5% for the privilege of doing so.

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