Early Withdrawal
The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account (such as an IRA) before a prescribed time, such as the account owner's attainment of a minimum age requirement. Investopedia Says:
When an early withdrawal is made, the investor usually incurs an early withdrawal fee, which acts as a deterrent to frequent withdrawals before the end of the early withdrawal period. As such, an investor would usually only opt for an early withdrawal if there were pressing financial concerns that warranted it, or if he/she had a markedly better use for the funds. Related Terms:
Christmas Club
Fixed Term
Guaranteed Investment Contract - GIC
Hardship Withdrawal
Individual Retirement Account - IRA
Maturity Date
Redemption
Registered Retirement Savings Plan - RRSP
Tax Deferred |