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Automatic Withdrawal

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Automatic withdrawal
A mutual fund that gives shareholders the right to receive a fixed payment from dividends on a quarterly or monthly basis.

Automatic Withdrawal
A mutual fund that gives a certain, stated amount to each shareholder every month or quarter. For example, an automatic withdrawal fund could be structured to give shareholders one dollar per share per month. The money theoretically comes from dividends or coupons, but if there is not enough income to cover the withdrawal, the fund's managers must liquidate some securities to cover the obligation.

automatic withdrawal
A feature of some mutual funds that allows a shareholder to specify that the fund remit fixed payments at periodic intervals. The payments are composed of dividends, interest, and capital gains received by the fund, and, if these are insufficient, liquidation of some shares owned by the shareholder.


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Actually, it is a penalty for not giving them access to your account, so they can make automatic withdrawals.
Or consider setting up an automatic withdrawal for your accounts.
Do you currently pay some bills through your online banking system, some bills with paper checks, some bills with credit cards, and some with automatic withdrawals, all the while never quite knowing your cash balance?
 
 
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