Yes Bank: Yes Bank of the private sector has taken a big decision. The bank has announced to give repo based interest on FD on Tuesday. The bank has introduced a new product for this. Let us tell you that till now the external benchmark linked interest rate was used only for loans, but there was no such system in the case of deposits.
RBI hikes interest rates
The Reserve Bank of India has increased the policy rate repo by 0.90 percent in two phases to bring inflation under control. Along with this, it is likely to increase further in the coming time. After the increase in the policy rate of the Reserve Bank, banks increased the interest on loans, but in the case of deposits, the steps were very slow. Questions were also raised regarding this.
for how long
Yes Bank said in a statement that its new offering will allow customers to avail dynamic benefits on their Fixed Deposits (FDs) as the interest rate will be linked to the existing repo rate. The benefit of ‘floating’ rate fixed deposits can be availed for tenures ranging from one year to less than three years.
Know what the CEO said?
Yes Bank Managing Director and Chief Executive Officer Prashant Kumar said that this is a product that has been thoughtfully designed to enhance the retail product offering. Kumar said, “One of the main advantages of this product is that the interest rate revision will be implemented automatically and will not require any human intervention by the bank or the customers.”
Recently FD rates have increased
Let us tell you that recently Yes Bank has also increased its FD interest rates. The new interest rates have come into effect from June 18, 2022. The bank is offering its customers interest rates ranging from 3.25 percent to 6.50 percent on FD interest rates from 7 days to 10 years. At the same time, interest rates ranging from 3.75 percent to 7.25 percent are being offered to senior citizens.