The investment characterized by the traits you provided is a Certificate of Deposit (CD).
Here's why:
- Insured by the FDIC or NCUA: CDs are typically insured by the FDIC (for banks) or NCUA (for credit unions), providing safety for your investment.
- Lowest interest rate of all investments: CDs generally offer lower interest rates compared to other investment options (like stocks or ETFs), but they often provide a fixed rate for the term of the deposit.
- Number of withdrawals per month may be limited: Withdrawals from CDs are generally not allowed until the maturity date; if you withdraw early, you may incur penalties.
While traditional savings accounts fit some of these criteria, the specific nature of penalties and the locking of funds in CDs aligns best with the traits listed.
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