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Yes Bank Floating FD Rates Launched For Domestic Customers, Know Rates & Other Details Here

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Fixed interest (FD) rates used to be associated with bank fixed deposits, but that is no longer the case. Yes Bank, a private sector bank, has introduced a floating rate FD product. The interest rate on FDs will be fixed according to the current repo rate under the scheme. The interest rate on such deposits will fluctuate if the repo rate changes. The interest rate on this FD will be tied to the current Repo rate, giving the bank's customers dynamic returns on their fixed deposits.

 

The Floating Rate Fixed Deposit is a one-of-a-kind product meant to assist customers by providing an asset class that combines the security of a fixed deposit with dynamic rewards linked to the Reserve Bank of India's (RBI) repo rates. The RBI has increased the repo rate by 90 basis points twice in the recent two months. The rate hike was announced in order to combat India's rising inflation.

The interest rate on the FD will be adjusted automatically, without the need for manual action from the Bank or the FD holder. The interest rate will be automatically reset each month to the applicable Repo rate from the previous month.

Yes Bank

Yes Bank

The floating rate FD can be availed for a period of one to three years, according to the bank's latest announcement. Yes Bank currently pays a 6.5% interest rate on basic deposits. The FD interest rate for senior citizens is 7.25%. Importantly, with a maturity payment, only the reinvestment option is available. There is a provision for early withdrawal, but there is a penalty.

The minimum deposit amount for a Floating Rate Fixed Deposit is Rs 10,000, and it is only available to residents and non-residents. With an Overdraft facility on the FD up to 90% of the original value, one can continue to enjoy liquidity.

 

Mark-up Rates
 

Mark-up Rates

Under the floating FD, the bank will offer mark-up rates over the FD interest rate. The Mark-up rate is the additional rate of interest offered by the bank over and above the base rate which is the REPO rate in this case. The Current repo rate is 4.90%.

Interest rates for deposits less than 5 Crore

TenureREPO RateMark-up rateRate of Interest
1 Year to < 18 Months4.90%1.10%6.00%
18 Months to < 3 Years4.90%1.60%6.50%

 

Senior Citizens Mark-Up Rates

Senior Citizens Mark-Up Rates

Rates for Deposit Amount Rs 10,000 to less than Rs 2 Crore

TenureMark-up
1 Year to less than 36 months0.50%

Rates For Deposit Amount Rs 2 Crore to less than Rs 5 Crore

TenureMark-up
1 Year to less than 18 months0.45%
18 months to less than 36 months0.25%

Source- Yesbank.in

Story first published: Wednesday, June 22, 2022, 9:52 [IST]
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