Smart Money Moves: How to Benefit from YES BANK’s Increased FD Rates
YES BANK, a prominent player in the banking sector, has recently garnered attention for offering increased FD rates. You can easily book a YES BANK FD online to earn lucrative returns on your savings. By aligning your investment with a short or long-term goal, you can choose a tenor that best suits your financial needs.
Read on to explore YES BANK’s FD rates and understand how fixed deposit interest is calculated. Additionally, learn smart money moves that can help you maximise your returns while taking advantage of these attractive rates.
YES BANK FD Rates
Here are the latest YES BANK FD rates for deposits of under ₹2 Crores:
| Tenor | General Public (p.a.) | Senior Citizen (p.a.) |
| 7 days to 14 days | 3.25% | 3.75% |
| 15 days to 45 days | 3.70% | 4.20% |
| 46 days to 90 days | 4.10% | 4.60% |
| 91 days to 120 days | 4.75% | 5.25% |
| 121 days to 180 days | 5.00% | 5.50% |
| 181 days to 271 days | 6.10% | 6.60% |
| 272 days to < 1 year | 6.35% | 6.85% |
| 1 year to < 18 months | 7.25% | 7.75% |
| 18 month < 24 months | 7.50% | 8.00% |
| 24 months to < 36 months | 7.25% | 7.75% |
| 36 months to < 60 months | 7.25% | 8.00% |
| 60 months 1 day to <= 120 months | 7.00% | 7.75% |
Disclaimer: These interest rates are latest as of October 2023, and are subject to change at the bank’s discretion.
How Fixed Deposit Interest is Calculated
Understanding how fixed deposit interest is calculated is essential for maximising your returns. Fixed deposit interest is typically calculated using the following formula:
A = P × (1 + r/n)^(nt)
Here,
A = Maturity amount (inclusive of principal and interest)
P = Principal amount
r = Annual interest rate
n = Number of times that interest is compounded per year
t = Tenor (in years)
The above formula applies to compounded interest, which is the most common type of FD. If your FD has simple interest, the formula is: A = P + (P x r x t)
Smart Money Moves with YES BANK FDs
To make the most of your investment in YES BANK FDs and benefit from their increased rates, consider the following smart money moves:
- Floating Rate FDs
While FDs are typically known to provide fixed returns, you can consider floating interest rates as well. In case the benchmark rate fluctuates, domestic FD rates will be revised to match the same. This is a beneficial strategy for those who want to invest for the long-term.
- Laddering Method
If you plan to invest a large sum of money in FDs, consider employing the laddering method. Here, you split the sum to invest in multiple FDs across different tenors to benefit from changing interest rates.
- Align Investment with Financial Goals
It’s crucial to identify your investment goals. Based on your financial objectives, decide whether this investment will fulfil your need for regular income, capital preservation or wealth accumulation. Once you narrow the goal down, deciding your investment terms will be easier.
- Optimal Tenor Selection
Choosing a tenor based on the interest rate offered may offer you better returns, but may not align with your financial goals. In this case, it’s best to use an FD calculator to understand how much you need to invest and for how long.
For liquidity, short-term FDs are ideal, but one can benefit from the power of compounding with a long-term FD.
Benefits of YES BANK FDs
Here are some conveniences associated with investing in YES BANK FDs:
- Online Application: Availability of an online portal for FD booking, eliminating the need for physical bank branch visits
- Minimal Documentation: Straightforward documentation which makes the application process hassle-free
- Customer Support: Responsive customer support to assist investors with their inquiries and concerns
- Auto-Renewal Option: Auto-renewal facility upon an FD’s maturity, ensuring that the investment continues to earn returns without manual intervention
- Loan Against FD: Access to liquidity with an overdraft facility of up to 90% of the invested principal amount
Key Factors to Consider Before Investing in YES BANK FD
While YES BANK FDs offer attractive rates and a range of conveniences, investors consider certain parameters before investing in an FD.
- Credit Risk
FDs offered by banks, including YES BANK, are generally considered safe. However, there is minimal credit risk associated with them. You can visit the websites of credit rating agencies like ICRA or CRISIL to check a financial institution’s credit rating.
- Interest Rate Risk
Fixed deposit interest rates may change at the issuer’s discretion. Once you lock-in an interest rate, it will remain the same throughout the tenor. However, the issuer may increase or decrease the rates at a later date, which may act as a hindrance if you have chosen auto-renewal.
- Taxation
Interest income from FDs is taxable. Consider the tax implications and plan your investments accordingly by using an FD calculator. Bear in mind that the limit set for the general public is ₹40,000 and ₹50,000 for senior citizens.
Conclusion
YES BANK FD rates offer an attractive opportunity for investors to grow their savings with competitive interest rates and a variety of FD options. It’s important to carefully analyse your financial goals and select a tenor and payout frequency that best suits your needs. Additionally, keep in mind the various tax implications based on the total maturity amount and interest earned.
The bank’s online tools and customer-centric approach make investing in FDs a convenient and rewarding experience. With YES BANK FDs, investors can enjoy higher returns owing to increased FD rates. This can help them secure their future financially and achieve different investment goals.
