Thanks to multi-year high inflation, hedging of real returns on your hard earned money has become very important. Due to high inflation, consumer prices and investment costs rise, meanwhile, the value of money decreases. This also reduces the value of the savings when it was earned. Thus, it is generally advised to always keep the inflation rate in mind while choosing your fixed deposit account. A comparison between the rate of return your bank gives and the inflation rate will help you understand the real rate of return on your investment.
FD These are the most traditional investment plans available in India that give guaranteed returns and eliminate risk. FDs are for those who do not want to take risk in market related instruments as they are sentiment driven and returns are volatile every year.
Currently the country’s CPI inflation The rate is 7%.
Yes Bank is a private banker based in Mumbai. Here a fixed deposit account can be opened with minimum deposit amount 10,000. The bank is offering inflation-beating rate of return on FDs less than 10,000 50 million.
On FD between 1st October less than 10,000 5 crore, Yes Bank offers a mark-up rate of 1.10% to 1.60% at the current repo rate of 5.9% on tenures ranging from 1 year to less than 3 years.
Specifically, the mark-up rate is the additional interest rate offered by the bank over and above the base rate which in this case is the REPO rate.
That said, Yes Bank is offering 7.50% interest rate on the mentioned FDs with maturity period from 18 months to less than 3 years. On tenures ranging from 1 year to less than 18 months, the rate has been fixed at 7%.
Additional rate benefits are provided to senior citizens. An elderly person opening an FD account between less than 10,000 2 crores, less than 1 year to 36 months tenure will have an additional 0.5% interest rate. Also, there is an additional rate benefit of 0.45% on FDs between less than 2 crore 5 crore on tenure of 1 year to less than 18 months, while on FDs of less than 18 months to 36 months the additional rate is 0.25%.
In case of an increase in the RBI’s repo rate, Yes Bank on its website said that the effective interest rate will increase and similarly any reduction in the REPO rate will result in a reduction in the effective interest rate of the floating rate. Fixed deposit.
Also, on premature withdrawal of FD of less than 5 crore, Yes Bank has imposed a fine. FDs with tenures ranging from 7 days to 90 days attract a penalty of 3%, while FDs with tenures ranging from 91 days to 181 days attract a penalty of 2.5%. FDs with maturities ranging from 182 days to less than 12 months have a penalty rate of 2% and 1% for 12 months to less than 36 months.
Other features of Yes Bank FD accounts include:
Investors can maximize their returns by taking advantage of dynamic interest rates.
Yes Bank provides the option of automatic reset of monthly interest rate as per the applicable REPO rate in the previous month.
It also provides liquidity along with overdraft facility on FD. An investor can enjoy liquidity with OD up to 90% of the principal.
– Reinvestment option is available with payout on maturity only.
There is flexibility to choose a tenure ranging from 1 year to less than 3 years.
The interest rates are floating in nature and are benchmarked to the repo rate.
Also, senior citizens. Additional 0.50% interest rate is available for value less than 2 crore and up to 0.45% for the value of less than 2 crore 50 million.
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