Why am I charged a penalty of more than 15% p.a. on a debit balance at FYERS?
FYERS applies a fixed annual rate of 15%, but the charges are calculated daily, which can sometimes give the impression of a higher rate in shorter timeframes.
How the penalty is calculated?
- Annual rate: FYERS charges a flat 15% per annum on any debit (negative) balance above ₹100.
- Daily application: This annual rate is divided into a daily rate of 0.041%, which is applied each day your account remains in debit.
- Example: If you had a ₹1000 debit balance for one year, your penalty would total ₹150 (i.e., ₹1000 × 15%).
Because the penalty is time-based, it accumulates daily and is charged monthly through a Journal Voucher (JV) entry in your ledger.
What if...
| Scenario | Explanation |
|---|
| Your penalty seems higher than 15% | The daily accruals over multiple debit periods or fluctuations may result in higher monthly totals. |
| You frequently switch between debit and credit | Each debit period triggers fresh penalty accruals, which can add up quickly. |
| You stayed in debit for only a few days | The daily charges still apply for those days—even a short debit period incurs a penalty. |
Penalties are not reversed once charged, even if the debit is cleared. To avoid such charges, it's best to maintain a consistently positive ledger balance.
Last updated: 19 Jun 2025
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