Early withdrawal penalty

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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.
References in periodicals archive ?
The 401(k) assets are then used to repay the loan as well as any taxes and early-withdrawal penalties.
ONE-YEAR accounts offer higher interest but usually have early-withdrawal penalties.
These range from loan payment deferrals to short-term fixed rate assistance loans, to waiving early-withdrawal penalties on some bank deposit accounts.
Waiver of early-withdrawal penalties -- Triangle will waive early-
CD Early Withdrawal Penalty Waiver: The bank will waive early-withdrawal penalties for disaster victims who prematurely redeem principal and earned interest on First Interstate Bank certificates of deposit.
Centura's hurricane-assistance programs cover a range of special options for consumer and business customers materially affected by Hurricane Floyd, from consumer and mortgage loan payment deferrals to short-term, fixed-rate assistance loans to waiving early-withdrawal penalties on some bank-related deposit products.
That's when Great Western introduces an 11-month CD that earns competitive rates but carries no early-withdrawal penalties after seven days of deposit.
Or if they take it out, they face early-withdrawal penalties.
In addition, the bank is waiving early-withdrawal penalties on First Interstate certificates of deposit for storm victims who prematurely redeem principal and earned interest.
A waiver of early-withdrawal penalties for earthquake and fire victims who prematurely redeem principal and earned interest on First Interstate Bank certificates of deposit.