Private sector bank, Yes Bank has hiked its penalty charges on premature withdrawal of fixed deposits valuing less than ₹5 crore.
The penalties will come into effect from May 16. Notably, a category of customers is exempt from these penalty charges.
Yes Bank has modified its penalty structure for fixed deposits less than ₹5 crore.
As per the Yes Bank website, premature withdrawals on FDs tenure less than equal to 181 days will now have a penalty of 0.25% from May 16, 2022.
There is a NIL penalty currently on tenures less than 181 days since July 5, 2019, but that will change from Monday (May 16th).
However, the bank kept the penalty unchanged at 0.5% on premature withdrawal on FDs maturing 182 days and above.
Premature withdrawal penalty is applicable for all types of customers such as individuals, non-individuals, senior citizens, staff, etc.
Notably, new customers who are senior citizens will not have to pay any penalty for their premature withdrawal on or after May 16th. A similar benefit is given to new FDs booked or renewed by Yes Bank staff.
Yes Bank said, “Premature penalty will be applicable as per above regime for Senior Citizen customers who booked/renewed FD’s for period 5th July 19 till 15th May 22.
Nil premature penalty will be applicable for Senior Citizen FD booked/renewed on and after 16th May 22.
For its staff, Yes Bank said that “premature penalty will be applicable as per above regime for YES BANK staff who booked/renewed FD’s for period 5th July 19 till 9th May 21. Nil premature penalty will be applicable for YES BANK staff FD
booked/renewed on and after 10th May 21.”
Furthermore, the penalty for premature withdrawal is not applicable on FCNR and RFC deposits.
Yes Bank directs that premature FD withdrawal penalty interest will be charged for partial as well as full withdrawal. Also, the bank stated that for values less than or equal to ₹5 crore, the existing penalty structure shall continue at 0.25% for all tenure & value buckets.
Currently, on bulk FDs between ₹2 crore to less than ₹5 crore with the premature facility, Yes Bank is offering 3% to 3.85% on tenures starting 7 days to 180 days.
While the interest rates are 4.50% on tenures 181 days to 270 days, and 4.85% on 271 days to less than 1-year tenure.
Yes Bank offers a 5.25% rate on tenures of 1 year to less than 2 years. The interest rate is 5.5% on tenures from 2 years to 5 years and above.
From 181 days, FD rates for senior citizens are higher than the general rates mentioned above. An interest rate of 4.75% is applicable on 181 days to 270 days tenure, the rate is at 5.10% on 271 days to less than 1-year tenure.
A senior citizen gets a 5.70% rate on tenures of 1 year to less than 18 months. A 5.5% rate is offered on tenures of 18 months to less than 2 years. Further, the rate is 5.75% on tenures 2 years to 5 years and above.
Yes Bank allows reinvestment for a minimum tenure of 6 months 1 day. The interest rate applicable for FDs with a monthly payout option will be discounted over the standard FD Rate decided by the bank from time to time.