Private sector bank, Yes Bank has increased its penalty charges on premature withdrawal of fixed deposits of lesser value from 50 million. The penalty will be applicable from May 16. Notably, a category of customers are exempted from these penalty charges.
Yes Bank has revised its penalty structure for Fixed deposit fewer 50 million.
According to the Yes Bank website, premature withdrawals on FD tenures of less than 181 days will now attract a penalty of 0.25% with effect from May 16, 2022.
There is currently zero penalty on tenures of less than 181 days with effect from July 5, 2019, but this will change from Monday (May 16).
However, the bank kept the penalty on premature withdrawal unchanged at 0.5% on FDs of 182 days and above.
Premature withdrawal penalty is applicable for all types of customers like individuals, non-individuals, senior citizens, employees etc.
Notably, new customers who are senior citizens will not have to pay any penalty for premature withdrawal on or after May 16. A similar benefit is offered on fresh FDs booked or renewed by Yes Bank employees.
Yes Bank said, “Premature penalty as per above regime will be applicable for senior citizen customers who booked/renewed FDs for the period from 5th July 19 to 15th May 22. Seniors booked on and after 16th Zero premature penalty will be applicable for civil FDs. May 22.”
For its employees, Yes Bank stated that “Premature penalty as per above arrangement will be applicable for YES BANK employees who booked/renewed FD for the period 5 July 19 to 9 May. Yes Bank Staff FD Zero premature penalty will be applicable for
Booked/Renewed on and after 10th May 21st.”
Also, the penalty for premature withdrawal is not applicable on FCNR and RFC deposits.
Yes Bank has directed that a penalty will be levied on partial as well as complete withdrawals on premature FD withdrawals. Also, the bank said that for values less than or equal to 5 crore, the existing penalty structure will continue at 0.25% for all tenures and value buckets.
At present, on bulk FD between less than 2 crore 5 Crore with Premature Facility, Yes Bank is offering 3% to 3.85% on tenures ranging from 7 days to 180 days. Whereas the interest rates are 4.50% on tenures from 181 days to 270 days and 4.85% for tenures from 271 days to less than 1 year.
Yes Bank offers a rate of 5.25% on tenures ranging from 1 year to less than 2 years. The interest rate on tenure of 2 years to 5 years and above is 5.5%.
Since 181 days, the FD rates for senior citizens are higher than the normal rates mentioned above. An interest rate of 4.75% is applicable for tenures from 181 days to 270 days, the rate being 5.10% for tenures from 271 days to less than 1 year.
A senior citizen gets the rate of 5.70% on tenure from 1 year to less than 18 months. A rate of 5.5% is offered on tenures ranging from 18 months to less than 2 years. Also, the rate is 5.75% on tenures ranging from 2 years to 5 years and above.
Yes Bank allows reinvestment for a minimum tenure of 6 months 1 day. The applicable interest rate for FDs with monthly payment option will be discounted to the standard FD rate
As decided by the Bank from time to time.