Yes Bank premature withdrawal penalty on FDs hiked

Yes Bank has increased the penalty for early withdrawal from fixed deposits for value less than Rs 5 crore. According to the Yes Bank website, the increased penalty rate came into effect on November 3, 2023.

Yes Bank hikes FD interest rates: These investors can now earn up to 8.25% fixed deposit interest rate

New penalty structure for fixed deposits

Yes Bank now charges 0.75% as penalty for FD less than equal to 181 days from earlier 0.50% and 1% from earlier 0.75% on 182 days and above. Nil premature penalty will be applicable for Senior Citizen FD booked/renewed on and after 16th May 22. Premature FD withdrawal penalty interest will be charged for partial as well as full withdrawal.

Tenure of Fixed Deposit (Completed) w.e.f. 5th July 2019 w.e.f. 16th May 2022 w.e.f. 08th August 2022 w.e.f. 03rd November 2023
Less than equal to 181 days Nil 0.25% 0.50% 0.75%
182 days and above 0.50% 0.50% 0.75% 1.00%

According to Yes Bank website, these are key points to note

  • Premature penalties will be applicable for all types of customers. (e.g.: Individual, Non-Individual)
  • For values less than Rs 5 Crs, the existing penalty structure shall continue at 0.25% for all tenure & value buckets.
  • For reference purpose interest rate slabs considered are 3 months = 91 days; 6 months = 181 days; 9 months =272 days.
  • Actual number of days will be calculated at the time of booking.
  • For less than 1 year deposit, please mention tenure in days.
  • Re-investment is available for a minimum tenure of 6 months 1 day (actual number of days in the month).

Yes Bank Fixed Deposits

Yes Bank has raised the interest rates on fixed deposits under Rs 2 crore by up to 25 basis points (bps) for certain durations. The bank now provides regular residents interest rates that range from 3.25% to 7.75% after the adjustment. Senior citizen FD interest rate varies between offers 3.75% to 8.25%. The highest interest rate of 8.25% is offered on tenure of 18 months to less than 24 months. The new rates are effective from November 21, 2023.

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