Overview of YES BANK
YES BANK came into existence in November 2003, and is currently India’s fourth largest private sector bank. It works towards establishing high quality, customer centric services to cater to the prosperous economic future of India. YES BANK also provides a comprehensive range of commercial banking and client-focussed corporate banking services.
Recurring Deposit from YES BANK
The Recurring Deposit schemes offered by YES BANK have been especially designed to help you save and be prepared for unforeseen circumstances in the future. A Recurring Deposit enables the depositor to deposit a fixed amount every month (in his/her RD account) and enjoy interest rates similar to Fixed Deposits. To encourage the habit of regular savings in its customers, YES BANK offers two kinds of Recurring Deposits, tailor-made to suit the varied need of every individual.
YES BANK customers enjoy highly flexible RD options at competitive rates of interest for investing a much smaller amount, every month. They are also entitled to additional benefits like TDS free interest, practical minimum tenure and no upper cap on monthly instalments.
Types of Recurring Deposits offered by YES BANK
YES BANK offers two types of Recurring Deposit schemes. They are –
- Regular Recurring Deposit
- NRE Recurring Deposit
With a Regular Recurring Deposit you choose a fixed amount (minimum amount being specified by the bank) to be invested every month, for a definite period. Once the pre-defined period is over, the bank pays you back the lump sum including the principal and the interest. This is ideal for small time investors who have a steady income.
With NRE Recurring Deposit, you get to enjoy the interest rates as high as that of NRE Fixed Deposits, by investing a much smaller amount every month.
Features and Benefits of YES BANK Recurring Deposits
Regular Recurring Deposit
- The minimum monthly instalment amount is Rs. 1000 and thereafter, in multiples of 100.
- There is no upper cap on the maximum monthly instalment amount.
- The tenure ranges from a minimum of 6 months (and in multiples of 3 months thereafter) to a maximum of 10 years.
- The interest earned on your RD is free of TDS (Tax Deductible at Source) deductions, as per the current income tax rules.
- Interest rates are similar to that of Fixed Deposit rates.
- You can pay the monthly instalments (for RD) easily by providing a one-time standing instruction from your YES BANK Savings Account.
NRE Recurring Deposit
- Interest rates offered are similar to that of NRE Fixed Deposits
- The minimum deposit tenure is 12 months (and in multiples of 3 thereafter) and maximum is 10 years.
- The minimum monthly instalment amount is Rs. 1000 and thereafter, in multiples of 100
- If the NRE Recurring Deposit is withdrawn prematurely, before the minimum tenure of 12 months, then interest is not payable on the same
- The interest rates on NRE RD are subject to change with time (contact the bank for more details)
- The interest earned on your NRE RD is free of TDS (Tax Deductible at Source) deductions, as per the current income tax rules
Goal based investment – Regular Recurring Deposit
YES BANK allows its customers to achieve their goals when it comes to saving through RD. This feature comes in handy when you have a target of saving a particular amount for a specific purpose. This could be anything from travelling abroad to purchasing a gift for your spouse, or meeting personal expenses. YES BANK assists you in achieving your saving target by making you follow a few simple steps mentioned below.
- To achieve your financial goal, calculate the monthly instalment amount based on factors like target amount, deposit term/period, inflation and current interest rates.
- Invest in instalments, according to your comfort, instead of depositing a lump sum at one go.
- Keep a regular track to see how much closer you are to the financial target.
A YES BANK Savings account holder can log onto his/her Net Banking account to calculate the exact amount needed to achieve the goal.
Interest offered on YES BANK’s Recurring Deposits
To maximise the returns on investments made by its customers, YES BANK offers RD schemes at competitive rates of interest.
The interest rates on YES BANK’s Regular RD account varies from a minimum of 8.50% a maximum of 8.85%, depending on the period of investment. These rates are subject to change at the sole discretion of the bank. To attain more clarity on the same, you can visit the nearest YES BANK branch or refer to the bank’s official website. Senior citizens with a Regular RD account are eligible for an additional interest rate of 0.50%, over the existing interest rates.
YES BANK’s NRE RD scheme’s interest rate ranges from a minimum of 8.75% to a maximum of 8.85%, depending on the period of investment. If the NRE RD is closed prematurely (before completing the minimum tenure) then no interest is payable on the same.
How to open a Recurring Deposit account with YES BANK
To open a Recurring Deposit account with YES BANK, you need to visit the nearest branch. The bank will offer assistance and guide you through the entire process. For customers who already have a Savings Account with YES BANK, can open a Recurring Deposit or Goal based savings by just logging on to their Net Banking account. This is applicable only if the maximum monthly instalment amount is Rs.14,99,900.
Eligibility to open a Recurring Deposit with YES BANK
Any Indian citizen holding a Savings Account with YES BANK is eligible to open an
RD account with the bank. To know more about the other eligibility criteria,
you can contact the nearest YES BANK branch.