Notice of withdrawal,
Definition of Notice of withdrawal:
Finance: A notice the holder or depositor of a time deposit or negotiable order of withdrawal account (NOW account) sends to a financial institution stating the intention to withdraw funds from an account.
When an account requiring a notice of withdrawal is opened, the financial institution must indicate this requirement in the accompanying documentation and forms, specifying the days in advance this notice should be send out. Also, if customers shall be penalized with a fee for withdrawals before the maturity date, these charges must be disclosed in the documentation to be signed.
Notices of withdrawal are typically used only for time-deposit accounts and accounts that bear interest, such as NOW accounts and savings accounts. Banks may require depositors to provide this notice seven days prior to making a withdrawal; however, this rule is usually waived for small cash withdrawals from NOW accounts and savings accounts.
Legal: A notice send by an individual who wants to withdraw from a partnership to the other party or parties involved in the partnership.
A notice of withdrawal is a notice given to a bank by a depositor, stating the depositor's intent to withdraw funds from their bank account. This notice applies to both time-deposits and negotiable orders of withdrawal (NOWs) accounts. Banks may also require a notice of withdrawal for savings accounts.
How to use Notice of withdrawal in a sentence?
- A notice of withdrawal typically applies to funds that earn interest and are useful for products that renew at maturity, such as time deposits.
- If certain withdrawals are not specific financial products but are large amounts of cash, banks may require a withdrawal notice.
- The details of what products require a notice of withdrawal and how many days notice is needed differ for every bank and are detailed in the legal documents when opening an account.
- A notice of withdrawal is a notice a depositor gives their bank that they will be withdrawing funds from their account.
- Banks require notice of withdrawals for time deposits, negotiable orders of withdrawals (NOWs), and sometimes for savings accounts.
Meaning of Notice of withdrawal & Notice of withdrawal Definition