Interest charge

Yes Bank Penalty Fee: Yes Bank increases early withdrawal penalty fee on FD

Yes Bank has increased fees for early withdrawal of term deposits. The higher penalty amount will take effect from August 8, 2022, according to the Yes Bank website.

From August 8, these will be the amounts of the applicable penalties:

If the duration of FD (Completed) is less than or equal to 181 days, the penalty charged will be 0.50% (instead of 0.25%).

If the seniority is 182 days or more, the penalty charged will be 0.75% (instead of 0.50%). Note that Yes Bank does not impose a premature penalty on its senior customers.

According to the Yes Bank website, these are key points to note

  • If the Client prematurely withdraws the deposit, the interest rate in force on the date of the deposit, for the period for which the deposit was with the Bank, will be due. In the case of domestic and NRO deposits, no interest will be paid if the deposit is withdrawn prematurely within 7 days of the booking date. In the case of an NRE/FCNR deposit, no interest will be paid if the NRE/FCNR deposit is prematurely withdrawn before the completion of one year from the reservation date.
  • A premature penalty will be applicable for all retail and non-retail customers.
  • A premature penalty will be applicable according to the above regime for YES BANK staff who have reserved/renewed FDs for the period from July 5, 19 to May 9, 21. No premature penalty will be applicable for YES BANK FD personnel reserved /renewed from May 10, 21.
  • A premature penalty will be applicable according to the above scheme for senior customers who have booked/renewed FDs for the period from 5 July 19 to 15 May 22. No premature penalty will be applicable for senior FD booked/renewed from 16 May 22.
  • FD premature withdrawal penalty interest will be charged for partial or full withdrawal.
  • The early withdrawal penalty does not apply to FCNR and RFC deposits.