What does 'withdrawal' most commonly refer to in financial terms?

The term 'withdrawal' in financial contexts most commonly refers to the act of taking money out of a bank account or financial institution. This could involve withdrawing cash from an ATM, transferring funds to a different account, or accessing funds for a personal or business need.

The focus on taking money out emphasizes that 'withdrawal' specifically indicates a decrease in the balance of an account, contrasting with other actions such as transferring or adding funds which would imply increasing the account balance. Understanding this key aspect of 'withdrawal' helps in navigating financial conversations and transactions, particularly in banking and personal finance.