Penalty

Penalties are generally designed to punish, or discourage, particular behaviour (or omissions).

In the finance context, penalties are usually money amounts.

Examples include tax penalties, penalty charges for late payment of debts, and loss of interest for early withdrawal of a fixed time deposit.

See also

• Breach
• Default surcharge
• Liquidated damages
• Payables management
• Penalty clause
• Remedy
• Time deposit account