How is the penalty for breaking a deposit early calculated? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

How is the penalty for breaking a deposit early calculated?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

No penalty is applied to the principal amount; instead, the return is recalculated over the actual period the deposit stayed with the bank and at an interest rate lower than the agreed one (for example 2% off the yield rate), and the difference is deducted from what has already been paid out.

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