Early Withdrawal Penalty
(redirected from Penalties for Early Withdrawal of Savings)

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Early withdrawal penalty

Penalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date.

Early Withdrawal Penalty

A fee assessed on the withdrawal of funds from a fixed-income investment before the prescribed time. Early withdrawal may come from a certificate of deposit before its maturity. More often, however, early withdrawals refer to withdrawals from a retirement account before the appropriate age (usually 65 or date of retirement, whichever is greater). Early withdrawal penalties exist to discourage the frequent or abusive use of early withdrawals. As a result, early withdrawals usually occur when the account holder is in great financial need.

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Early Withdrawal Penalty (redirected from Penalties for Early Withdrawal of Savings)

Early Withdrawal Penalty
(redirected from Penalties for Early Withdrawal of Savings)