Early Withdrawal

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What is '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 or 401(k) before a prescribed time. Early withdrawal could be anything earlier than the account owner's attainment of a prescribed minimum age requirement, or the maturity of a fixed-term investment, such as a certificate of deposit (CD).

Explaining 'Early Withdrawal'

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 early withdrawals if there were pressing financial concerns that warranted it, or if he or she had a markedly better use for the funds.

The impact of the early withdrawal option on time deposit pricing
www.sciencedirect.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Remittances, financial market development, and economic growth: the case of Latin America and the Caribbean
onlinelibrary.wiley.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Leaving university early: Exploring the differences between continuing and non‐continuing students
www.tandfonline.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Evidence of early withdrawal in time deposit portfolios
link.springer.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Access to financial services and financial infrastructure withdrawal: problems and policies
www.jstor.org [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

The social dynamics of early withdrawal from the labour force in France
www.cambridge.org [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Optimal financial crises
onlinelibrary.wiley.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Toxic epidermal necrolysis and Stevens-Johnson syndrome: does early withdrawal of causative drugs decrease the risk of death?
jamanetwork.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

Financial valuation of guaranteed minimum withdrawal benefits
www.sciencedirect.com [PDF]
Retail certificates of deposit contain an early withdrawal option allowing investors (depositors) to sell them back to banks in exchange for their face value less a prespecified withdrawal penalty. The Withdrawal Option Pricing Hypothesis posits that this put option is …

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Q&A About Early Withdrawal

Why would someone want to consume goods and services produced by others rather than producing them himself/herself ?

People often find it more efficient (i.e., less costly) if they can specialize in performing certain tasks themselves rather than trying to produce everything themselves; specialization allows individuals to focus on what they do best while other individuals focus on what they do best; this division of

What is an early withdrawal?

An early withdrawal is 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 or 41(k) before a prescribed time.

What does economics study in particular?

Production, distribution, and consumption of goods and services.

What are goods?

Goods are tangible objects that satisfy human wants.

What do economists study when they look at production?

Economists study how resources are used to produce various kinds of goods and services in order to fulfill human needs and wants.

How does one know what type of account they have and how much money they can withdraw without penalty?

The investor should check with their bank to find out what type of account they have and how much money they can withdraw without penalty.

Are services considered to be goods or intangible things?

Services are intangible things that satisfy human wants.

Why would someone want to engage in production activities?

People engage in production activities because they expect doing so will allow them to obtain more valued output than if they did not engage in those productive activities; this expectation is based on their subjective valuation of the costs and benefits associated with engaging in such activities.

What are some reasons for making an early withdrawal?

There could be pressing financial concerns that warrant it, or if he or she had a markedly better use for the funds.

Is there any other reason to make an early withdrawal?

Yes, if one has pressing financial concerns that warrant it.

How do economists define production?

Production is the process by which inputs (such as labor, land, capital) combine to create outputs (goods).

When does one incur an early withdrawal fee?

One incurs an early withdrawal fee when they make an early withdrawal.

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