Early withdrawal penalty
A penalty on money withdrawn prematurely from a fixed-term investment, such as a tax-deferred pension plan before the age of 59 1/2 in the US.
Similar financial termsEarly exercise
The exercise or assignment of an option prior to expiry.
The ability to establish automatic periodic mutual fund redemptions and have proceeds mailed directly to the investor.
Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.
A mutual fund that gives shareholders the right, but not the obligation, to receive a fixed payment from dividends on a quarterly or monthly basis.