Yes Bank is known to offer one of the most attractive interest rates on fixed deposits among the private sector banks. However, Yes Bank has reduced its fixed deposit (FD) interest rates by 25 basis points (0.25%)on select tenures. This latest reduction raises concerns about a possible trend of declining FD interest rates across the banking sector.At the same time, HDFC Bank has discontinued its Special Edition FD scheme, which previously offered higher interest rates to depositors. The move suggests that banks may be reassessing their deposit rates in response to shifting market conditions, liquidity needs, or changing monetary policies.
Also read: HDFC Bank ends special edition deposit: Now offers highest FD interest of 7.75% from 7.90%
If the Reserve Bank of India (RBI) signals a further shift toward a lower interest rate regime through a policy rate action in coming days, banks may start reducing FD rates in anticipation.
Latest Yes Bank FD interest rates
Yes Bank offers fixed deposit interest rates between 3.25% and 7.75% for FD amounts below Rs 3 crore for general citizens for tenures ranging from 7 days to 10 years, compared 3.25% and 8% earlier. The bank offers the highest interest rate of 7.75% for a tenure of 12 months to less than 24 months
| Tenure | Regular |
| Interest Rates (%P.A.)* | |
| 7 days to 14 days | 3.25% |
| 15 days to 45 days | 3.70% |
| 46 days to 90 days | 5.00% |
| 91 days to 120 days | 5.00% |
| 121 days to 180 days | 5.00% |
| 181 days to 271 days | 6.25% |
| 272 days to 12 months | 6.50% |
| 12 months to 24 months | 7.75% |
| 24 months to 36 months | 7.25% |
| 36 months to 60 months | 7.25% |
| 60 months | 7.25% |
| 60 months 1 day to = 120 months | 7.00% |
Senior Citizen FD rates
For senior citizens, the bank offers interest rates between 3.75% and 8.25% per annum for amounts below Rs 3 crore, compared to 3.75% to 8.50% earlier. The highest interest rate of 8.25% per annum is offered on tenure of 12 months to less than 24 months for senior citizens.Looking for high FD returns? These banks are offering up to 8.5% interest on fixed deposits
| Tenure | Senior Citizen** |
| Interest Rates (%P.A.)* | |
| 7 days to 14 days | 3.75% |
| 15 days to 45 days | 4.20% |
| 46 days to 90 days | 5.50% |
| 91 days to 120 days | 5.50% |
| 121 days to 180 days | 5.50% |
| 181 days to 271 days | 6.75% |
| 272 days to 12 months | 7.00% |
| 12 months to 24 months | 8.25% |
| 24 months to 36 months | 7.75% |
| 36 months to 60 months | 8.00% |
| 60 months | 8.00% |
| 60 months 1 day to = 120 months | 7.75% |
Yes bank premature penalty
The penalty for premature withdrawal of fixed deposits with a duration of 181 days or less is 0.75% per annum. The penalty rate for deposits with a tenure of 182 days or more is 1.00% per annum, effective November 3, 2023.
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