diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
index ee4c6d4e1..447127344 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
@@ -803,7 +803,9 @@ public class SavingsAccount extends AbstractPersistable<Long> {
         final Money annualFee = Money.of(this.currency, this.annualFeeAmount);
         final SavingsAccountTransaction annualFeeTransaction = SavingsAccountTransaction.annualFee(this, annualFeeTransactionDate, annualFee);
         this.transactions.add(annualFeeTransaction);
-
+        
+        validateAccountBalanceDoesNotBecomeNegative(SavingsApiConstants.applyAnnualFeeTransactionAction);
+        
         this.summary.updateSummary(this.currency, this.savingsAccountTransactionSummaryWrapper, this.transactions);
 
         calculateInterestUsing(mc, today);
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/scheduledjobs/service/ScheduledJobRunnerServiceImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/scheduledjobs/service/ScheduledJobRunnerServiceImpl.java
index 00a37e310..88e1449b1 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/scheduledjobs/service/ScheduledJobRunnerServiceImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/scheduledjobs/service/ScheduledJobRunnerServiceImpl.java
@@ -6,7 +6,10 @@
 package org.mifosplatform.scheduledjobs.service;
 
 import java.util.Collection;
+import java.util.List;
 
+import org.mifosplatform.infrastructure.core.data.ApiParameterError;
+import org.mifosplatform.infrastructure.core.exception.PlatformApiDataValidationException;
 import org.mifosplatform.infrastructure.core.service.RoutingDataSourceServiceFactory;
 import org.mifosplatform.infrastructure.core.service.ThreadLocalContextUtil;
 import org.mifosplatform.infrastructure.jobs.annotation.CronTarget;
@@ -204,8 +207,15 @@ public class ScheduledJobRunnerServiceImpl implements ScheduledJobRunnerService
                 .retrieveAccountsWithAnnualFeeDue();
 
         for (SavingsAccountAnnualFeeData savingsAccountReference : annualFeeData) {
-            this.savingsAccountWritePlatformService.applyAnnualFee(savingsAccountReference.getId(),
-                    savingsAccountReference.getNextAnnualFeeDueDate());
+            try{
+                this.savingsAccountWritePlatformService.applyAnnualFee(savingsAccountReference.getId(),
+                        savingsAccountReference.getNextAnnualFeeDueDate());
+            } catch (PlatformApiDataValidationException e) {
+                List<ApiParameterError> errors = e.getErrors();
+                for(ApiParameterError error : errors){
+                    logger.error("Apply annual fee failed for account:"+savingsAccountReference.getAccountNo()+" with message "+error.getDeveloperMessage());
+                }
+            }
         }
 
         logger.info(ThreadLocalContextUtil.getTenant().getName() + ": Savings accounts affected by update: " + annualFeeData.size());