Early Withdrawal Penalty

Definition

  • A depositor forfeits interest or is assessed a service charge for withdrawing funds from or closing out a time deposit before its maturity date.

Synonyms
premature takeout, service fee, withdrawal penalty

Related Terms and Acronyms

  • Maturity Definition,
    • The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
  • Service Charge (SC) Acronym,
    • Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.
    Bank account transaction code.
  • Time Deposit Definition,
    • A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.
  • Withdrawal (WD) Acronym,
    • Taking money out of a bank account or financial instrument.
    Bank account transaction code.
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