Penalty rates for early withdrawals from fixed deposits have increased at Yes Bank
A private sector lender named Yes Bank has raised the fines for early withdrawals from fixed deposits.
A private sector lender named Yes Bank has raised the fines for early withdrawals from fixed deposits. The increased penalty costs will take effect on August 8, 2022, according to the bank’s website. The bank increased penalty rates from 0.25 percent to 0.50 percent, or a 25 basis point increase, for early withdrawal of fixed deposits booked for a duration of fewer than 181 days. In contrast, the bank has increased penalty fees for early termination or withdrawal of fixed deposits booked for a period of 182 days or longer by 25 basis points, from 0.50 to 0.75 percent. The premature penalty will not apply to older citizens as customers.
According to the website of Yes Bank “Premature withdrawal penalty shall be applicable on all deposits booked / renewed for amount less than INR 5 Crore as per the below table.”
Important information on premature penalties, according to the Yes Bank website:
1. All client categories will be subject to the premature penalty. (Examples include Individual, Non-Individual, Senior, Staff, etc.).
2. For employees of YES BANK who booked or renewed fixed-term investments for the period from July 5 to May 9 under the foregoing regime, a premature penalty will be applied. For YES BANK staff FD booked/renewed on and after May 10th, there will be no early penalty.
3. Premature penalties will be imposed in accordance with the aforementioned rules for Senior Citizen customers who purchased or renewed FDs between July 5, 2019, and May 15, 2019. For Senior Citizen FDs booked or renewed on or after May 16th, there will be no early termination fee.
4. Interest on the premature FD withdrawal penalty will be applied to both partial and complete withdrawals.
5. Deposits made with FCNR and RFC do not incur a penalty for early withdrawal.
6. The previous penalty system will remain in place for values greater than INR 5 Crs at 0.25 percent for all duration and value buckets.
On June 18, 2022, Yes Bank last changed the interest rates on its fixed deposits. Following the change, the bank is now providing interest rates on deposits maturing in 7 days to 10 years ranging from 3.25 percent to 6.50 percent for the general public and 3.75 percent to 7.25 percent for seniors. The bank is currently offering a maximum interest rate of 6.50 percent for regular customers and 7.00 percent to 7.25 percent for senior citizens on deposits of less than 2 Cr maturing in 18 months to 10 years.