Private lender Yes Bank has recently announced a reduction in the fixed deposit (FD) interest rates for deposits below ₹2 crore. The bank has lowered FD rates by up to 25 basis points (bps) on certain tenures. As of October 4, 2023, Yes Bank offers interest rates ranging from 3.25% to 7.25% for general citizens and 3.75% to 8% for senior citizens on FDs maturing in periods ranging from seven days to ten years, as per the information provided on Yes Bank’s website.
Here is a breakdown of the revised FD interest rates at Yes Bank:
- 7 days to 14 days: 3.25%
- 15 days to 45 days: 3.70%
- 46 days to 90 days: 4.10%
- 91 days to 120 days: 4.75%
- 121 days to 180 days: 5.00%
- 181 days to 271 days: 6.10%
- 272 days to less than 1 year: 6.35%
- 1 year to less than 18 months: 7.25%
- 18 months to less than 24 months: 7.50%
- 24 months to less than 36 months: 7.25%
- 36 months to less than 60 months: 7.25%
- 60 months: 7.25%
- 60 months 1 day to less than or equal to 120 months: 7%
Notably, on Fixed Deposits maturing in one year to less than 18 months and 18 months to less than 36 months, Yes Bank will now offer interest rates that are 25 bps lower than previous rates. This translates to a 7.25% rate on Fixed Deposits maturing in one year to less than 18 months and 7.50% on FDs maturing in 18 months to less than 36 months.
In a similar move, HDFC Bank has also reduced its term deposit interest rates on select tenures. Effective from October 1, 2023, HDFC Bank now offers interest rates ranging from 3% to 7.20% for general customers on deposits maturing in seven days to ten years. Senior citizens will earn interest rates of 3.5% to 7.75% on these deposits. Notably, the bank has reduced the tenure on FDs of 4 years and 7 months (55 months) by 5 bps, resulting in a 7.20% interest rate on these deposits.
This adjustment in FD interest rates by Yes Bank and HDFC Bank comes at a time when the Reserve Bank of India (RBI) has chosen to keep the benchmark repo rate unchanged at 6.50% for the fourth consecutive time. This decision follows a series of rate hikes by the central bank in an effort to combat rising inflation last year.
In addition to Yes Bank and HDFC Bank, other banks such as IndusInd Bank and Punjab & Sindh Bank have also made revisions to their FD interest rates in October 2023.
Private lender Yes Bank has scheduled October 21, 2023, as the date for announcing its second quarterly financial results for the period ending on September 30, 2023.