The term usually defines the act/ability to take/cash out something without the intention of returning it. In most of the cases, it is related to the accounts in banks cash, assets among with deposits.
In finances, it is a procedure of removing or taking out funds from the account in the financial institution or the sum of money you take out. This word is also used to talk about deposits, it defines the money you take out of an account that has been invested into it. The term also can be used when you talk about allowance, trust, or saving plan. Sometimes in order to do a withdrawal, some requirements must be followed in order not to fall under the penalization. The phrase early withdrawal can be used in the situation when the person wants to take out money earlier and as a result, an investment contract is broken.
When this word is used to talk about cash, it defines a process of converting the holdings from a certain account into cash. The majority of the banks carry the limitations of withdrawals. This indicates that the person can take out just a particular amount of money but not more.
Some examples for the usage of the term in the sector of finances:
Andrea can use that ATM to make a withdrawal.
The penalty will be applied if the person wants to make a withdrawal earlier than it is stated in the arrangement.