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YES Bank FD – Interest Rates, Features, Types of FDs and FAQs

YES Bank provides FDs for different tenures to meet customer needs. The YES Bank fixed deposit interest rates vary for different tenures. The minimum tenure is seven days, and the maximum is ten years. The Bank offers a 0.5% additional interest rate for senior citizens. The Bank also offers loans against the FD to meet uncertainties. Additionally, one can prematurely withdraw their investments at a penalty.

yes bank fd rates
yes bank fd rates

YES Bank FD Interest Rates 2020

TenureFixed Deposit Interest RatesSenior Citizen FD Interest Rates
7 days to 45 days5.00%5.50%
46 days to 90 days5.50%6.00%
3 months to 5 months 29 days6.00%6.50%
6 months to 8 months 29 days6.50%7.00%
9 months to 364 days6.50%7.00%
1 year to 10 years6.75%7.25%
2 years to 3 years7.00%7.75%

Note: YES Bank revises fixed deposit rates periodically 

YES Bank has a minimum interest rate of 5% on its FD with tenure of 7 days to 45 days and a maximum of 7% for a tenure of 2-3 years. For senior citizens, for the same tenure, the FD rates are 5.5% and 7.75%.

YES Bank pays interest on FD as per the investor’s choice. Investors can opt for regular interest payments (monthly, quarterly, semi-annually and annually) or they can directly take the interest upon maturity.

Any investment made in tax saving FDs of YES Bank qualifies for tax saving under Section 80C of the Income Tax Act. However, the investment made in other FDs doesn’t qualify for tax exemption under Section 80C of the Income Tax Act.

There is a TDS of 10% on interest income levied by the banks or financial institutions. From the AY 20-21, the limit for TDS has been increased to INR 40,000 from INR 10,000. Hence, from AY 20-21, the TDS is applicable on interest income above INR 40,000 per annum (INR 50,000 for senior citizens).

Furthermore, in the case where the investor doesn’t provide PAN details, the TDS would be 20%. Also, the interest income is taxable at the applicable income tax slabs. No surcharge, education cess or SHEC is added to the above rates. The TDS is deducted at the basic rate.

Key Features of YES Bank FD

Following are the key features of YES Bank Fixed Deposits:

YES Bank fixed deposit scheme offers guaranteed income at a fixed interest rate.

  • Tenure: The tenure ranges between 7 days to 360 months
  • Minimum Deposit Amount: The minimum amount to open an FD with YES Bank is INR 10,000.
  • Maximum Amount: INR 2,00,00,000.
  • YES Bank FD Interest Rate: YES FD offers interest rates in the range of 5.00% p.a to 7.00% p.a.
  • Preferential Interest Rates: YES bank offers preferential interest rates to senior citizens ranging between 5.50% p.a to 7.75% p.a.
  • Safety: YES Bank provides insurance cover for deposits up to INR 5,00,000 to all its investors. The deposits are covered under the Deposit Insurance Scheme of RBI.
  • Loan against FD: Depositors can avail loan on some of the YES Bank FDs. Depositors can avail loan facility against their deposit to meet financial requirements, without having to break the FD.
  • Premature Withdrawal: Most FD schemes allow premature withdrawals, however with a penalty.
  • Nomination Facility: YES Bank allows depositors to nominate beneficiaries for the deposits.
  • Auto-Renewal: YES Bank provides the auto-renewal facility of the FD account.
  • Convenience: Depositors can open FD investment anywhere at any time at their convenience. FD can be opened through Internet Banking or by visiting the nearest bank branch.

Types of Fixed Deposits FD offered by YES Bank

YES Bank offers the following two types of fixed deposits:

  • Regular Fixed Deposit Scheme
  • Tax Saver Fixed Deposit Scheme

Types of YES Bank FD schemes: In Detail

Regular Fixed Deposit Scheme

Purpose: To help individuals invest to earn attractive returns along with safety and flexibility.

Tenure: 7 days to 10 years

Minimum Deposit Amount: INR 1,000

Interest Payment: Non Cumulative option: Monthly or Quarterly; Cumulative Option: Compounded quarterly and paid on maturity.

YES Bank fixed deposit rate for Senior citizens: YES bank offers additional interest rates 0.50% for senior citizens.

Reinvestment: YES bank provides reinvestment option for deposits with a minimum tenure of 6 months 1 day.

Premature withdrawal: Available with a penalty of 0.5% for FD with 182 days and more tenure.

Sweep-in-facility: YES bank provides a sweep-in facility and also an option to link with a savings account.

Overdraft Facility: Available for deposits above INR 50,000

Eligibility: Resident Indians can apply for an FD in YES Bank. HUFs, joint investors and individuals.

Tax Saver Fixed Deposit Scheme

Purpose: To help individuals save on tax while investing in fixed deposit. An investor can claim tax deduction up to INR 1,50,000 under Section 80C of the Income Tax Act.

Tenure: 5 years

Minimum Deposit Amount: INR 1,000

Maximum Deposit Amount: INR 1,50,000

YES Bank fixed deposit rate for Senior citizens: YES bank offers additional interest rates 0.50% for senior citizens.

Premature withdrawal: Not available

Overdraft Facility: Not available

Loan Facility: Not available

Tax exemption: Depositors can claim for tax exemption up to INR 1,50,000.

Eligibility: Resident Indians can apply for an FD in YES Bank. HUFs, joint investors and individuals.

FD account opening process

YES Bank allows investors to open their FD through online or offline mode. To open the FD offline, one will have to visit the nearest YES Bank branch and fill the account opening form and submit the necessary documents. For online mode, the investors have to visit YES Bank’s website, fill the form online, and submit the necessary documents.

Following are the documents required to open an FD in YES Bank.

  • FD account opening form
  • Two passport size photographs
  • Identity Proof as per KYC norms. (PAN Card, Aadhar Card, Voter ID Card, Passport, Driving License)
  • Residency Proof as per KYC norms. ( Aadhar Card, Utility bills, Voter ID Card, Passport, Driving License)
  • Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
  • Bank Saving Account details like account number, IFSC code and branch
  • Age proof (for senior citizens)
  • Form 15G/H (to avoid TDS)

Also, only eligible investors can invest in YES Bank FD. The eligibility criteria to invest in YES Bank FD are:

  • Resident Individuals
  • HUFs
  • NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)

Loan against FD account

YES Bank offers loans against fixed deposits. The Bank offers loans up to 90% of the FD amount. Also, YES bank doesn’t provide loans against FD of any other bank. The rate at which YES bank offers loans is 6-8%. Additionally, the loan tenure (duration of the loan) has a restriction of up to maximum tenure of the fixed deposit.

Loans such as loan against property (home loan), business loan, an education loan, etc., can be taken against an FD. The loan interest rate varies depending on the Bank and type of loan. One can calculate their loan EMI using Scripbox’s online loan EMI calculator

The loan EMI calculator works as a personal loan EMI calculator, home loan calculator and car loan EMI calculator. The investor can also use this EMI calculator in various scenarios by changing the personal loan interest rate, home loan interest rate, and car loan interest rate.

Premature withdrawal

YES Bank provides a premature withdrawal facility to its depositors in times of need. However, there is a certain penalty to it. The penalty varies from time to time and also is different for different schemes. Following are the important features to consider while opting for premature withdrawal:

For withdrawals within 7 days from the date of the booking, no interest payments are made.

Partial withdrawals are available for certain requests at the discretion of the Bank.

For FCNR and NRE accounts, no interest payments if the deposits are withdrawn before one year.

What is the tenure range for YES Bank Fixed Deposit?

The tenure range for YES Bank fixed deposit is seven days to 10 years. The tenure breakdown is given below:

Tenure
7 days to 45 days
46 days to 90 days
3 months to 5 months 29 days
6 months to 8 months 29 days
9 months to 364 days
1 year to 10 years
2 years to 3 years

Who is eligible for opening an FD account in YES Bank?

Only eligible investors can invest in YES Bank FD. The eligibility criteria to invest in YES Bank FD are:

  • Resident Individuals
  • HUFs
  • NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)

What are the documents required to open a Fixed Deposit account in YES Bank?

Following are the documents required to open an FD in YES Bank.

  • FD account opening form
  • Two passport size photographs
  • Identity Proof as per KYC norms. (PAN Card, Aadhar Card, Voter ID Card, Passport, Driving License)
  • Residency Proof as per KYC norms. (Aadhar Card, Utility bills, Voter ID Card, Passport, Driving License)
  • Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
  • Bank Saving Account details like account number, IFSC code and branch
  • Age proof (for senior citizens)
  • Form 15G/H (to avoid TDS)

What are the current interest rates on a FD account in YES Bank?

The YES Bank fixed deposit rate is higher than its savings account. The interest calculation for YES Bank FDs is done quarterly. However, the interest pay-out is as per the investor’s choice. They can choose to get paid at regular intervals like monthly, quarterly, semi-annually and annually. Or they can take it at the time of maturity. Also, the interest income is taxable at the rate of an individual’s income tax slabs. Additionally, the interest income is subject to TDS.

The YES Bank FD rates for regular citizens are:

  • For tenure of 7-45 days, it is 5%
  • 46-90 days the FD rate is 5.5%
  • 3 months to 5 months 29 days it is 6%
  • 6 months to 8 months 29 days it is 6.5%
  • The FD rate for 9 months-364 days is 6.5%
  • For 2 years to 3 years, it is 7%
  • Any FD with tenure of 1-10 years is 6.75%

YES Bank Fixed Deposit (FD) Interest Rates for senior citizens is higher than the interest rates for regular citizens. YES Bank FD interest rates for senior citizens are:

  • For tenure of 7-45 days, it is 5.5%
  • 46-90 days the FD rate is 6%
  • 3 months to 5 months 29 days it is 6.5%
  • 6 months to 8 months 29 days it is 7%
  • The FD rate for 9 months-364 days is 7%
  • For 2 years to 3 years it is 7.75%
  • Any FD with tenure of 1-10 years is 7.25%

To calculate the maturity amount of a YES Bank FD investment, one can use a fixed deposit calculator. Scripbox’s fixed deposit calculator is available online and is free to use.

Is PAN mandatory to open a YES Bank FD account?

A PAN card isn’t mandatory to open a YES Bank FD account. However, there are a few implications for the same.

  • Under section 206AA, TDS will be deducted at the rate of 20%. If PAN is submitted the TDS rate will be 10% u/s 194A.
  • The Bank will not issue any TDS certificate.
  • The income tax department will not credit TDS
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.

Can I open an FD account without holding a bank account with YES Bank?

YES one can invest in YES Bank FD without having a bank account in YES Bank. Following are the documents required for the same.

  • FD account opening form
  • 2 passport size photographs
  • Identity Proof as per KYC norms. (PAN Card, Aadhar Card, Voter ID Card, Passport, Driving License)
  • Residency Proof as per KYC norms. ( Aadhar Card, Utility bills, Voter ID Card, Passport, Driving License)
  • Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
  • Bank Saving Account details like account number, IFSC code and branch
  • Age proof (for senior citizens)
  • Form 15G/H (to avoid TDS)

Also, only eligible investors can invest in YES Bank FD. The eligibility criteria to invest in YES Bank FD are:

  • Resident Individuals
  • HUFs
  • NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)

Can I take a loan against a fixed deposit?

Yes. One can take a loan against their YES bank fixed deposit. The Bank offers loans up to 90% of the FD amount. The rate at which YES bank offers loans is 6-8%. Additionally, the loan tenure (duration of the loan) has a restriction of up to maximum tenure of the fixed deposit.

Loans such as loan against property (home loan), business loan, an education loan, etc., can be taken against an FD. The loan interest rate varies depending on the Bank and type of loan. One can calculate their loan EMI using Scripbox’s online loan EMI calculator. 

The loan EMI calculator works as a personal loan EMI calculator, home loan EMI calculator and car loan EMI calculator. The investor can also use this EMI calculator in various scenarios by changing the personal loan interest rate, home loan interest rate, and car loan interest rate.

What are the tax implications of fixed deposits?

The only FD that qualifies for tax saving is the 5-year tax saving FDs. Investment in this FD helps save up to INR 1.5 lakhs under Section 80C of the Income Tax Act. All other FDs do not qualify for tax saving. Interest income is taxable as per the income tax slab of the individual.

Also, all the FDs are subject to TDS of 10%. From AY 2020-2021 TDS limit has been increased from INR 10,000 to INR 40,000. TDS is charged only if the interest earned is above INR 40,000 and (INR 50,000 for senior citizens).  To know the interest earned is above or below the TDS threshold limit, one can use YES Bank FD calculator that is available online.

One can use the Income Tax Calculator to calculate their tax liability. Scripbox’s Income Tax Calculator is online and free to use.

Does YES Bank offer Recurring Deposits?

YES Bank offers recurring deposits. The recurring deposits of YES Bank have a minimum tenure of 6 months and a maximum tenure of 10 years. To invest in YES Bank RD, investors can use the online or offline mode. Below are the YES RD interest rates for different tenures.

TenureGeneral RD RatesSenior Citizen RD Rates
6 months to 8 months 29 days7.10%7.60%
9 months to 364 days7.00%7.50%
1 year to 10 years7.25%7.75%

Note: YES Bank revises RD interest rates periodically

What is the average interest rate of FDs across Indian Banks?

The average interest rate of fixed deposits across all Indian Banks is around 5%. This average is only for banks across India. The post office fixed deposit (POFD) is not considered for the same. The interest for the post office fixed deposit (POFD) is 6.7%.

Published on August 26, 2020