It is not recommended to withdraw from savings vehicles and investment vehicles earlier than intended. The reason for this can be seen in the following example:
If you save ZWL1 000 a month with 10% interest and withdraw early:
| Year | Total Savings Beginning of Year Z$ | 10% interest per year Z$ | Total Balance with interest Z$ |
|---|---|---|---|
| 1 | 1000.00 | 100.00 | 1100.00 |
| 2 | 2100.00 | 210.00 | 2310.00 |
| 3 | 3310.00 | 331.00 | 3641.00 |
| 4 | 4641.00 | 464.10 | 5105.10 |
| 5 | 6105.10 | 610.51 | 6715.61 |
| Withdraw Z$3000.00 | |||
| 6 | 4715.61 | 471.56 | 5187.17 |
| 7 | 6187.17 | 618.71 | 6805.88 |
| 8 | 7805.88 | 780.58 | 8586.46 |
| 9 | 9586.46 | 958.65 | 10545.11 |
| 10 | 11545.11 | 1154.51 | 12699.62 |