Yes Bank recently announced a reduction in interest rates on Fixed Deposits (FDs), impacting millions of customers across the country. The bank has decreased FD rates by 25 basis points (bps) for specific tenures, making the highest rate for general customers now 7.75%, down from 8%, and 8.25% for senior citizens. The new rates took effect on November 5, 2024. Let’s break down the changes, terms, and current FD rates so that customers can make informed decisions about their savings.
New FD Interest Rates for General and Senior Citizens
With these new adjustments, Yes Bank offers interest rates on FDs that range from 3.25% to 7.75% for general customers and 3.75% to 8.25% for senior citizens, depending on the deposit duration.
For customers seeking the highest return, FDs of 18 months now have the top interest rate at 7.75% for general customers and 8.25% for senior citizens. This interest rate reduction affects customers who had previously been earning an 8% return on this tenure, marking a 25 bps decline.
Detailed FD Rates for Different Tenures
Here’s an updated list of Yes Bank’s FD interest rates across various tenures:
| Tenure | General Public (%) | Senior Citizens (%) |
|---|---|---|
| 7 to 14 days | 3.25 | 3.75 |
| 15 to 45 days | 3.70 | 4.20 |
| 46 to 90 days | 4.10 | 4.60 |
| 91 to 120 days | 4.75 | 5.25 |
| 121 to 180 days | 5.00 | 5.50 |
| 181 to 271 days | 6.10 | 6.60 |
| 272 days to less than 1 year | 6.35 | 6.85 |
| 1 year | 7.25 | 7.75 |
| 1 year to 18 months | 7.50 | 8.00 |
| 18 months | 7.75 | 8.25 |
| 18 months to less than 24 months | 7.75 | 8.25 |
| 24 months 1 day to less than 36 months | 7.25 | 7.75 |
| 36 to 60 months | 7.25 | 7.75 |
| 60 months | 7.25 | 8.00 |
| 60 months 1 day to 120 months | 7.00 | 7.50 |
FD Rules and Benefits for Senior Citizens
- Minimum Deposit: Customers can start a Fixed Deposit with Yes Bank with an initial deposit as low as ₹10,000.
- Higher Interest for Senior Citizens: Senior citizens receive an additional 0.50% on FDs shorter than three years and a 0.75% bonus on FDs of three years or more. This bonus rate is available for deposits under ₹5 crore.
Penalty for Premature Withdrawals
Yes Bank imposes a penalty on premature withdrawals for FDs of less than ₹5 crore. This is an essential point for customers to consider, especially those looking for flexibility in their investments. Make sure to check the exact penalty rates if you plan to withdraw your FD early, as it may impact your returns significantly.
Yes Bank FD Highlights
- Interest Rate Range: 3.25% to 7.75% for general customers; 3.75% to 8.25% for senior citizens.
- Top Rate for 18-Month FD: 7.75% for general and 8.25% for senior citizens.
- Minimum Deposit: ₹10,000.
- Additional Senior Citizen Benefits: 0.50% to 0.75% higher returns based on tenure.
These updated rates may prompt existing customers to consider their options, such as reinvesting at the current rates, exploring other banks with higher rates, or adjusting FD terms to optimize returns.
