Yes Bank is among the renowned financial institutions of the country with an extensive line up of financial products and services on offer for a varied range of customer needs. Yes Bank recurring deposit is one of the most sought after financial services extended by the institution. The said scheme works to help individuals save more and secure their future in terms of finances. The minimum tenure for a Yes Bank RD is 6 months and the maximum being 10 years. The Yes Bank RD interest rates range from 5.50% to 6.75%. Not to mention, senior citizens can avail themselves a greater rate of interest; the bank provides an extra 0.50% over the regular rate of interest to people who have more than 60 years of age.
In this article
- Yes Bank RD Interest rates 2021
- Yes Bank RD Interest Rates – Special Features
- Premature Withdrawal of Yes Bank RD Amount
- How is Interest Calculated on a YES Bank Recurring Deposit?
- What is the Eligibility of the YES Bank Recurring Deposit?
- Documents Required to Open a Yes Bank RD Account
- Types of Yes Bank RD Interest Rates- Term Wise
- How is Yes Bank Recurring Deposit Taxed?
- How to Open a Yes Bank RD Account?
- Yes Bank RD – Frequently Asked Questions
Yes Bank RD Interest rates 2021
|Tenure||General Interest rates (p.a.)||Senior Citizen Interest Rates (p.a.)|
|3 years – 10 years||6.75%||7.50%|
Yes Bank RD Interest Rates – Special Features
- The maximum interest rate offered by the bank is 6.75%
- The interest on the RD account is compounded annually
- The minimum deposit amount in Yes Bank is Rs. 1000
- Senior citizens can avail RD interest rate up to 7.50%
- There is no cap on the maximum deposit amount
- The tenure of Yes Bank RD ranges from 6 months to 120 months
- TDS deductions are as per the existing tax rules at the time of opening the account
Premature Withdrawal of Yes Bank RD Amount
Premature withdrawal of Yes Bank RD is available. However, the bank might charge a nominal penalty amount on the interest accrued. Also, partial withdrawal of the RD account is not allowed.
How is Interest Calculated on a YES Bank Recurring Deposit?
The YES Bank Recurring Deposit interest is calculated at each quarter. The compounding interest formula which applies for the computation of the maturity amount is as follows –
A= P x (1+R/N) ^ (Nt)
- A stands for the Maturity Amount
- P stands for Recurring deposit
- N stands for the Number of times the interest is compounded
- R stands for Rate of interest
- t stands for Tenure
Ms. Kusum invests Rs. 1,000 per month into her Regular YES Bank RD account for 9 months. The sum accrued interest at the rate of 7% is thus –
A= P x (1+R/N)^(Nt)
= 9000 x (1+7/4)^(4×9/12)
= Rs. 9,264
The returns generated via interest would be Rs. 264.
What is the Eligibility of the YES Bank Recurring Deposit?
Resident Indian Individuals and HUFS who hold a savings account with YES Bank are deemed eligible to open a YES Bank Recurring Deposit account with it.
Documents Required to Open a Yes Bank RD Account
- Filled Application form
- Pan Card copies or Form 60/61
- 2 passport size photos
- Identity proof (any)
- Address Proof (any)
- Other documents
Types of Yes Bank RD Interest Rates- Term Wise
Yes Bank Short-Term RD Interest Rates
A Yes Bank RD account held for a short time ranging from a minimum tenure of 6 months to 9 months offers an interest rate of 5.50%-5.75%%. If the account is opened for 12-15 months, the interest rate offered is 6.50%, given that the deposit is less than 1 crore.
Yes Bank Medium and Long Term Recurring Deposit Interest Rates
A Yes Bank Recurring Deposit account can also be opened for a medium-term with tenure ranging from 18 to 21 months and for a long term of 24 months to 10 years (120 months). A deposit with tenure ranging from 18 months to 21 months, the interest rate offered on RD is 6.50%, given that the deposit is worth less than 1 crore. For deposits less than 1 crore and with the tenure ranging from 24 months to 10 years, the interest rate offered is 6.50%-6.75%.
How is Yes Bank Recurring Deposit Taxed?
Under the Income Tax Act, 1961, Recurring Deposit is taxable and the proceeds generated through it are taken into account while calculating taxable income from other sources.
Additionally, if an individuals’ earnings generated through YES Bank RD exceed a certain limit, it is further liable for TDS.
Taxation on Recurring Deposit of YES Bank is explained below –
- If the interest accrued in a year exceeds Rs. 10,000, the proceeds would incur a TDS at the rate of 10%. However, if the individual’s IT PAN is not up to date, they would have to pay a TDS at the rate of 20%.
- Additional interest on income would attract a tax that would be charged as per an individual’s income tax slab.
How to Open a Yes Bank RD Account?
A recurring deposit account at Yes Bank can only be opened by Individuals having a YES BANK Savings Account. In order to open a recurring deposit account, one needs to log in with their net banking credentials, assess the appropriate scheme for, produce the relevant documents and make the initial payment by the due date.
Yes Bank RD – Frequently Asked Questions
Ques. What is the minimum eligibility to open a Yes Bank RD account?
Ans. Any individual who is an Indian resident and HUF (Hindu Undivided Families). NRIs are also eligible for an RD account through NRO and NRE accounts. Yes Bank also provides an RD scheme for minors (less than 10 years of age) under the guardianship of parents to monitor their finances.
Ques. What is the General Tenure of Yes Bank RDs?
Ans. A Yes Bank RDs general tenure ranges from 6 months to 120 months.
Ques. Does Yes Bank provide a nomination facility?
Ans. Yes, it provides a nomination facility.
Although, only one nominee is allowed per account whether it’s in a single name or joint name.
Ques. Are Premature withdrawals allowed in Yes RD accounts?
Ans. In case you are withdrawing the amount before the maturity a nominal penalty charge on the interest accrued (say 1 to 2%) will be levied by the bank and the account will be closed. The minimum lock-in period of Yes Bank RD account is 3 months and within that period, if the premature withdrawal takes place, the depositor will not be getting any interest and only the principal amount is transferred to the source account. Moreover, apart from the cancelled interest, any incentives offered are also retrieved.
Ques. Does Yes Bank allow partial withdrawal of the RD account?
Ans. Partial withdrawal of RD is not allowed by Yes Bank. However, some banks offer the facility to obtain a loan by keeping the RD as collateral.
Ques. What are the Yes Bank RD Interest Rates for NRI/NRE Accounts
Ans. NRE Recurring Deposit scheme of Yes Bank offers a competitive interest rate for instalments up to a maximum of Rs. 14,99,900 for a tenure of 1 year to 10 years.
Ques. What are Yes Bank RD Rates for Senior Citizens?
Ans. As mentioned earlier also, additional benefits are provided to senior citizens by Yes Bank in the form of a surplus interest rate of 0.50% on the regular interest rates. An RD account opened for a tenure of 6 to 9 months can provide an interest rate of 7.75% and for 12-15 months, an interest rate of 8.255 can be availed.
Ques. Is an RD in Yes Bank a good investment?
Ans. With reference to the current Yes Bank RD rates, it is clearly evident that an RD account in Yes Bank can reap great benefits to your investment. Being one of the leading private sector banks, one can place its trust in this bank. An RD account can help you in saving a substantial amount of money eventually which can be used in any emergency. However, it is recommended to read and understand all the terms and conditions before proceeding with the investment part.