Withdrawal Benefits and Penalties
Categories: Banking
See: Withdrawal.
In most savings accounts in a bank, for example, when you deposit money, you form a tacit agreement with the bank that you will leave the money in peace for at least six months. You get a benefit by making your deposit "illiquid," something the bank appreciates, in that they can loan that money with confidence that you won't show up at the teller's window asking for it back any time soon. However, if you urgently need that dough for a Saturday night date, then you will pay a penalty for withdrawing your cash early. So that date had better be worth it.