Yes Bank to charge premature withdrawal penalty for this FD tenure

Yes Bank, on its website, has stated that it will impose a penalty charge for premature withdrawals for fixed deposits under 181 days. According to the bank's official website, the increased fees will take effect on May 16, 2022. Fixed deposits with terms of fewer than 181 days previously had no penalty costs, but now investors will have to pay a penalty of 0.25 percent for premature withdrawals.

Premature withdrawal penalties will apply to all deposits booked/renewed for less than Rs 5 crore, as shown in the table below.

Also, these new charges are not applicable for Senior Citizen customers.


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

• Customers of all categories will be subject to the premature penalty. (For example, individual, non-individual, senior citizen, employee, etc.)
• For YES BANK employees who booked/renewed FDs between July 5, 2019 and May 9, 2019, a pre-payment penalty would be applied as per the aforesaid rule. For YES BANK staff FDs booked/renewed on or after May 10, there will be no prepayment penalty.
• Senior Citizen clients who booked/renewed FDs between July 5, 2019 and May 15, 2019, will be subject to the above-mentioned penalty. For Senior Citizen FDs booked/renewed on or after May 16, there will be no prepayment penalty.
• Interest will be imposed on both partial and full FD withdrawals if they are made prematurely.
• On FCNR and RFC deposits, there is no penalty for premature withdrawal.
• For values more than INR 5 crores, the existing penalty structure of 0.25 percent will apply across all tenure and value categories.