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Yes Bank Fixed Deposit Rates For Senior Citizens

Yes Bank is one of India’s premier private sector banks. Having been launched in 2004, the bank has been in business for about 17 years now and has come a long way. Although the bank might have been in the news for the wrong reasons in the recent past, a new management team and central bank intervention has apparently restored the bank to its former reputation.

Yes Bank FD Rates For Senior Citizens

Like most other banks in India Yes Bank too offers special fixed deposit interest rates for senior citizens. In case you intend to avail this benefit, you need to invest a minimum of Rs 10,000 for a minimum period of 7 days. Even this little move can earn you Rs 375 or 3.75% interest on your investment. 

Of course as the fixed deposits tenure and amount escalates, the amount you can earn by way of interest, increases correspondingly. Moreover, Yes Bank FD Rates for Senior Citizens are extremely attractive and competitive 

For example, have a look at this table below 

Tenure  Yes Bank interest rate % Yes Bank FD Rates for Senior Citizens%
3 months to less than 6 months 4.5 5
6 months to less than 9 months 5 5.54
9 months to less than 1 year  5.25 5.83
1 year to less than 18 months 5.75 6.40
18 months to less than 3 years  6 6.66
3 years to less than 5 years 6.25 7.19
5 years to 10 years or more  6.5 7.45

Benefits of Yes Bank Fixed Deposit 

  • Auto renewal of your FD: Life is busy and fairly unpredictable. There might be times where you might forget to give instructions for the renewal of your fixed deposit and as a result, you could lose out on earning interest on your investment. Your Yes Bank FD undergoes auto renewal to ensure that you keep earning interest in your hard earned capital unless you advise the bank differently. As your capital is reinvested along with interest, you end up earning compound interest.
  • Flexibility of tenure: You can choose a tenure starting at 7 days or a tenure of as many as 10 years. There are a total of 10 tenure options for investors to choose from.
  • Liquidity: Investors can opt for what is known as a sweep-in facility which allows for liquidity of capital in the investors savings or current account.
  • Overdraft facility: Let’s say you have opted for a fixed deposit and life throws some uncertainty your way. You might not want to break your fixed deposit and forgo the interest being earned or the tax being saved. You can instead opt for an overdraft at a competitive rate against your fixed deposit.
  • Competitive interest rates: Yes Bank offers one of the most attractive interest rates in the market. Yes Bank FD Rates for Senior Citizens are very competitive.

 

Types of Yes Bank Fixed Deposits that one can avail of: 

  • Domestic Deposit: A domestic deposit with Yes Bank gives resident Indian citizens a fixed, predetermined, very competitive rate of interest depending on the tenure and amount of the investment. The minimum tenure is 7 days for which one can earn 3.25% interest.
  • Recurring Deposit: The Yes Bank recurring deposit is a kind of fixed deposit where a fixed amount is added to the investment on a monthly basis through the tenure. This investment keeps earning  interest and the interest compounded on a quarterly basis.
  • Tax saver deposit: Speaking of tax, you can get a tax free fixed deposit with a five year term at the very same interest rates as other fixed deposits.

 

Senior citizen interest rates are only applicable on the below types of deposits.

  • NRO Deposit: Yes Bank’s fixed deposits for Non Resident External Indians allow this group of customers to invest in Indian rupees. NRO deposits have similar tenure and interest rate offerings as domestic Deposits with minimum tenure starting at 7 days for an interest rate of 3.25%.
  • NRE Deposit: Yes Bank’s fixed deposits for Non Resident External Indians allow this set of customers to invest in Indian rupees. These deposits are available for a minimum term of 12 months up to 10 years. Interest rates vary from 5.75% to 6.5%.
  • FCNR  Fixed Deposit: Yes Bank has thoughtfully curated Fixed Deposit options for Non Resident Indians seeking foreign currency based investments. The bank welcomes investments in a range of currencies including US, Canadian, Singapore, Hong Kong and Australian dollars, Great British pounds, Euro and Japanese Yen.

 

Eligibility for Yes Bank Fixed Deposit:  

  1. For domestic deposits, recurring deposits and tax Saver deposits, the investor has to be a citizen of India above 18 years of age. 
  2. To avail of senior citizen interest rates the investor must be 60 years of age. 
  3. To access NRO and NRE deposits one has to have the requisite relevant citizenship status.

 

How to calculate fixed deposit interest rate for Senior Citizens 

You can use an online calculator to arrive at your interest rate for your Yes Bank Fixed Deposit.

Alternatively you can arrive at the amount of interest you will earn by using the Simple Interest formula wherein you multiply the rate of interest with your principal amount (or Investment capital amount) and then divide the product of the two by 100.

For example if your investment amount is Rs 10,000 and your Yes Bank FD Rates for Senior Citizens Is 6.40%: 

  1. 6×10000 = 64000
  2.  64000÷100 = 640
  3. So, Rs 640 is the interest amount.

 

Factors affecting interest rates 

  1. Tenure – the tenure of the deposit has the largest bearing on what rate of interest you will earn. For example a 3 month deposit gets the investor 3.25% interest whereas a 3 year investment earns the investor 6.25% interest. 
  2. Amount – Right through this article we have talked about interest rates for amounts under Rs 2 crore. However since the larger chunk of investors would fall in this category, you might say that the amount of the investment has a somewhat low effect on your interest rate. However some banks do offer differing interest rates for different investment capital slabs. 
  3. AgeYes Bank FD Rates for Senior Citizens are quite a bit higher than their regular interest rates. For example if a 1 year investment on a regular domestic deposit begets 5.75%, the Yes Bank FD Rate for Senior Citizens deposit for the same tenure will be 6.40%

 

FAQs:

What is the minimum time that I can invest for?

With a Yes Bank Fixed Deposit you can invest for as short a tenure as 7 days and still earn a good rate of interest on your deposit.

Why do I need to state my age?

The minimum investment age is 18 years. Moreover Yes Bank FD Rates for Senior Citizens are higher than the rates for other investors and as such the investor needs to state their age so that Yes Bank can apply the relevant interest rate.

What if I need to withdraw my FD before the end of the tenure?

You can definitely withdraw your Fixed Deposit before the end of your tenure although some penalties might be applicable.

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