Withdrawal: Definition in Banking, How It Works, and Rules A withdrawal is a removal of funds from a bank account, investment plan, pension, or trust fund. Investopedia requires writers to use primary sources to support their work. Usually, tiered-rate bank accounts will offer higher rates of interest for larger balances to encourage customers to save more and remain loyal to the bank. Investopedia is part of the Dotdash Meredith publishing family.
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