Private sector lender Yes Bank has increased penalties for premature withdrawal of fixed deposits. According to the bank’s website, the new fines will take effect from August 8, 2022. The penalty rate for early withdrawal of time deposits of 181 days and below was raised from 0.25% to 0.50%, an increase of 25 basis points.

In contrast, the bank has increased the penalty for early termination or withdrawal of term deposits of 182 days and more by 25 basis points, from 0.50% to 0.75%. Premium customers are not subject to this premature penalty.

According to Yes Bank’s website, “Premature withdrawal penalties will apply to all deposits/renewals below Rs 5 crore.”
Highlights from the Yes Bank website on premature penalties:

1. The premature penalty will apply to all types of customers. (Example: Individual, Non-individual, senior citizen, staff, etc.).
2. For Yes Bank staff who book/renew FDs between July 19 and May 9, premature penalties will be imposed under the above system. Yes Bank Staff FD bookings/renewals on and after May 21 will be subject to zero upfront penalty.
3. For senior citizen customers who book/renew FD between July 19 and May 15, a premature penalty will be applied according to the above system. Senior Citizen FDs booked/renewed on and after May 22 will be subject to zero advance penalties.
4. Partial and full withdrawals will be subject to penalty interest on premature FD withdrawals.
5. Premature withdrawal penalties do not apply to FCNR and RFC deposits.
6. For values >= Rs 5 crore, the existing penalty structure should continue to be 0.25% of all tenures and value buckets.
7. Yes Bank revised its fixed deposit rate on June 18, 2022. The revised bank now offers public interest rates of 3.25% – 6.50% and 3.75% – 7.25% on deposits due in 7 to 10 years. For deposits under Rs 2 crore due in 18 months to 10 years, the bank is now offering top rates of 6.50% for regular customers and 7.00% to 7.25% for seniors.