8 Mins

Introduction

YES Bank recurring deposit scheme is a monthly investment scheme that allows investors to invest in small amounts for a fixed tenure. The tenure of YES Bank RDs ranges between 6 months and ten years. The YES Bank recurring deposit rate is around 7% – 7.25% for regular citizens. YES Bank also offers additional interest rates for senior citizens on their RD investments. The senior citizen RD interest rate ranges between 7.5%-7.75%. This article covers features of YES Bank RD and its interest rates in detail.

YES Bank Recurring Deposits

Following are the key features of YES Bank recurring deposits:

Tenure

The YES Bank recurring deposit tenure ranges between 6 months to 10 years.

Minimum and Maximum Deposit Amount

The minimum amount of investment in YES bank RD is INR 1,000 and in multiples of INR 100. Also, there is a restriction on the maximum investment amount for the RD.

YES Bank RD Interest Rate

YES Bank RD interest rates are in the range of 7.00% – 7.25%. Furthermore, one can estimate their potential returns from YES Bank recurring deposits using the YES Bank RD calculator.

Preferential Interest Rates

YES bank offers additional interest rates for senior citizen depositors. Senior citizen depositors get an additional 0.50% on YES Bank RD investments. The YES bank RD interest rates are in the range between 7.50% – 7.75%. Furthermore, one can estimate their potential returns from YES Bank recurring deposits using the YES Bank recurring deposit calculator.

Tax and TDS

YES bank RD scheme does not qualify for tax saving. The interest income from YES bank RDs is taxable as per investor’s income tax slab rates. Moreover, YES bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS rate is applicable when the PAN details are submitted; otherwise, the bank charges TDS at 20%.

One can also determine if their YES bank RD interest income is above or below the TDS threshold limit using the YES Bank RD calculator. Furthermore, one can estimate their income tax liability with the help of Scripbox Income Tax Calculator.

Premature withdrawal

YES bank allows investors to prematurely withdraw their recurring deposit investments. However, it comes with a certain penalty.

Nomination Facility

Depositors can nominate beneficiaries for their YES Bank RDs.

Convenience

Opening and managing the recurring deposit investments is easy and convenient through the Indian Bank’s online portal.

Loan against RD

YES bank allows investors to take a loan against recurring deposits. This helps in meeting liquidity requirements. Furthermore, it eliminates the hassle of applying for a new loan.

Investors can take loans such as home loans (loan against property), education loans, motor loans, etc., against YES Bank RD. Also, one can compute their loan EMI using the loan EMI calculator. Furthermore, the loan EMI calculator works as a personal loan EMI calculator, car loan calculator, and also home loan calculator. The investor can also use the EMI calculator for comparing scenarios by changing the variables such as interest rate.

YES Bank RD Recurring Deposit Interest Rates

Following are the YES Bank recurring deposit rates for different tenures.

YES Bank RDs have interest rates that range between 5.75%-5.9% for a tenure of 1 year to 10 years. For senior citizens, the interest rates range between 7.5%-7.75%. YES Bank offers additional interest rates to senior citizens on their RD investments. The senior citizen RD interest rate ranges between 7.5%-7.75%. Also, the YES Bank RD rates are higher than bank savings accounts. One can estimate the returns from YES Bank RDs using a YES Bank recurring deposit calculator. The YES Bank recurring deposit rate is dependent on the age of the investor, tenure of the investment, Reserve Bank of India policies and current economic condition in the country.

Interest income from YES Bank RDs is taxable as per the individual investor’s income tax slab rates. Investors will have to show this interest income under the head ‘Income from other Sources’ while filing their income tax returns. Moreover, YES Bank deducts a TDS of 10% if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% rate is applicable if the investor submits PAN Card details to YES Bank. Else, the bank will cut TDS at 20%.

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 RD interest rates are subject to change

Requirements of YES Bank RD Scheme

Eligibility

To be able to invest in YES Bank RD, one needs to have a YES Bank savings account. Following is the eligibility criteria:

  • Resident individuals
  • NRIs
  • HUFs
  • Proprietorship firms
  • Partnership firms
  • Companies

Deposit and account

One can invest in YES Bank RD with an amount as low as INR 1000. YES bank charges a penalty of 1% on the fixed rate of interest for the delayed instalment.

Documents

To be able to open an RD account with YES Bank, one would need the following documents:

  • A duly filled and signed RD application form
  • Passport size photographs
  • Proof of identity – PAN Card, Voter ID, Driving License, Aadhar Card
  • Proof of residence – Passport, Aadhar Card, Utility Bills
  • Any other KYC documents required by the bank

Withdrawal

YES Bank allows premature withdrawal of RD investments and also charges a nominal amount as a penalty as per the bank’s norms. However, YES Bank will not allow partial withdrawal of RD investments.

Tax

Investment in YES Bank RDs is not eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Moreover, the YES Bank RD interest income is taxable as per the investor’s income tax slab rates. YES Bank RD investors have to show their interest income under the head ‘Income from Other Sources’.

Also, TDS is levied on the interest income. YES Bank cuts TDS based on whether the investor has disclosed the PAN details or not.

If the investor submits the PAN Card details to YES Bank, then the applicable TDS rate for it is 10%. Hence, YES Bank cuts TDS if the interest income exceeds INR 40,000 for regular citizens and INR 50,000 for senior citizens.

If the investor doesn’t submit the PAN Card details to YES Bank, then the applicable TDS rate is 20%. Hence, YES Bank cuts TDS if the interest income exceeds INR 40,000 for regular citizens and INR 50,000 for senior citizens.

Nomination

YES Bank RDs have a nomination facility where the account holder can nominate beneficiaries. Also, one can change the nominee by submitting a declaration form.

Type of Recurring Deposit Schemes

YES Bank Recurring Deposit Scheme

The YES bank’s recurring deposit scheme helps investors invest their earnings in a monthly manner. The RD scheme helps in saving a specific amount for a fixed tenure. Furthermore, the interest gets compounded every quarter.

Also, the scheme assures returns on the deposits. Hence there is no risk, and the monthly remittance is secure.

  • Tenure: 6 months to 10 years (in multiples of 3 months)
  • Minimum Investment Amount: INR 1,000 and in multiples of INR 100 thereafter.
  • Maximum Investment Amount: No limit

Encourages the habit of regular saving. Furthermore, the higher the amount and duration, the higher is the interest rate.

Is there a difference between the interest rates for Recurring Deposit and Fixed Deposit?

YES bank offers varying interest rates for RDs and FDs. Following are YES bank recurring deposit interest rates:

TenureGeneral RatesSenior Citizen 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%

Following are the YES bank fixed deposit interest rates:

TenureYES Bank FD Interest RateSenior Citizen YES Bank FD Interest Rate
7 days to 14 days3.50%4.00%
15 days to 45 days4.00%4.50%
46 days to 90 days4.50%5.00%
3 months to 5 months 29 days5.00%5.50%
6 months to 8 months 29 days5.50%6.00%
9 months to 364 days5.75%6.25%
1 year to 1 year 364 days6.50%7.00%
2 years to 3 years6.50%7.00%
3 years to 10 years6.75%7.50%

Conclusion

YES Bank RDs are considered a good investment for investors who want to regularly save a small amount of money. Through this savings scheme, investors can invest monthly in the scheme. Since the YES Bank RD scheme guarantees income at the time of maturity, it is a low-risk investment. Hence, investors looking for low-risk investment options and guaranteed income can invest in this scheme. However, they have to take into consideration the tax that they have to pay on the interest income from YES Bank RDs.

Frequently Asked Questions

What are the limits on the minimum and maximum deposits?

Yes, the YES Bank RD account requires a minimum deposit amount of INR 1,000 per month. However, there is no maximum limit on the deposit amount. 

Can I open a recurring deposit account for a minor?

Yes, a minor can open a YES Bank RD account under the guardianship of their parents or legal guardian. This is to ensure that someone is monitoring their finances.

How to apply for YES Bank RD?

One can open a YES Bank recurring deposit account through both offline and online modes. For online mode, one has to visit the YES Bank website. And for offline mode, one has to visit the nearest branch of YES Bank.
To be able to invest in YES Bank RD, one needs to have all valid documents. They need to have a YES Bank RD application form, duly filled and signed and passport size photographs. For proof of identity, they need to either have a PAN Card, voter ID, driving license, or Aadhar Card. For proof of residence, they need to either have a valid passport, Aadhar Card, or utility bills. Additionally, they would also need any KYC documents as required by the bank.

Is it possible to renew an RD account?

No, it is not possible to renew a YES Bank RD account.