YES BANK News Update: Private sector Yes Bank (YES Bank) in the country has tightened the rules applicable to Fixed Deposit (FD). Now customers of the bank will have to pay a higher penalty for breaking the FD before the lock-in period. According to the website of YES Bank, the pre-maturity withdrawal rate is different for each tenor FD. The amount of fine has been changed on this and the new rule is going to come into effect from 8 August 2022. If the FD is broken prematurely, investors will have to pay a higher amount as penalty. The penalty amount will be based on the tenure of the FD.
how much will be fined
According to YES BANK Bank, premature withdrawal on FDs of less than 181 days will attract double penalty. On this, the bank has increased the amount of penalty from 0.25% to 0.50%. Similarly, premature breaking of FDs with a tenure of 182 days or more will now attract a penalty of 0.75 per cent, which was 0.50 per cent earlier. However, this rule will not apply to senior citizens.
Bank increased interest rates
Let us tell you that on June 18, the interest rates on FDs were increased by YES Bank. Under this, the bank now pays interest ranging from 3.25% to 6.50% to common citizens on FDs of different time periods, while for senior citizens, it gives interest from 3.75% to 7.25%. This includes FDs with tenures ranging from 7 days to 10 years. On FDs of less than 2 crores maturing between 18 months to 10 years, the bank offers 6.5 FDs to ordinary citizens and 7 to 7.25% for senior citizens.
discount to bank employees
The penalty imposed by YES Bank on FD is common to all customers. But bank employees have been given exemption in this. Employees who got FD between July 5, 2019 to May 9, 2021, will have to pay the penalty as per the new system for premature breaking and withdrawal of FD. Those making FD after 10th May 2021 will not have to pay any penalty on premature withdrawal.
Discount to Senior Citizens
The bank said that senior citizens will also have to pay a penalty for premature withdrawal on FDs made between July 5, 2019 to May 15, 2022. On the other hand, senior citizens who have made FD after May 15, 2022, will not have to pay penalty for premature withdrawal. Pre-maturity penalty will be applicable on both full or partial withdrawals from the FD.