Yes Bank RD Interest Rates

About Yes Bank Recurring Deposit

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 5.75% - 7.50% p.a. 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 6.25% - 8.00% p.a.

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%.

Check Out: Yes Bank FD Rates

YES Bank Recurring Deposits Features

• 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.
• 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 Scripbox’s 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 Yes Bank 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 Account Eligibility and Documents Required

• 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 Required: 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

Yes Bank Flexi Gain Recurring Deposit Schemes

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.

Find Out: Best WhiteOak Mutual Funds to Invest

Can I open a recurring deposit account for a minor in Yes Bank?

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.

Is it possible to renew an RD account in Yes Bank?

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

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.

Resources

1. White Oak Mutual Funds
2. White Oak SIP Calculator
3. Yes Bank Fixed Deposit
4. Yes Bank FD Calculator
5. Yes Bank Savings Account