Private sector lender Yes Bank has revised its interest rates on non-resident external (NRE) deposits under Rs two crore. As per the bank’s official website, the new rates came into effect on 3 October 2022. Currently, the bank is paying an interest rate of 7.25 per cent on NRE deposits that mature in a year or less than 18 months, while it is offering an interest rate of a maximum of 7.50 per cent on deposits that mature in 18 months to 24 months. NRE deposits maturing between 2 years to 10 years have an interest rate of 7.25 per cent.
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Notably, no interest is payable if individuals withdraw from their FCNR, NRE, and RFC FDs before the 12-month period has been completed. According to Yes Bank, interest rates for monthly interest payouts will be lowered based on current rates. If the customer initiates early withdrawal of the deposit, the “interest will be calculated at the rate applicable for the period for which the deposit was held with the Bank as on the date of deposit or the contracted rate of the deposit whichever is lower plus an applicable penalty if any”, according to the private sector lender.
Yes Bank similarly modified the rates for NRE recurring deposits on 3 October. On NRE RDs maturing in 12 to 15 months, the bank is now offering an interest rate of 7.25 per cent, while it is giving an interest rate of 7.50 per cent on NRE RDs with a tenure of 18 to 21 months. On NRE deposits expiring in 24 months to 10 years, Yes Bank is now paying an interest rate of 7.25 per cent.
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No interest is payable if an NRE RD is withdrawn before the full 12-month period, according to Yes Bank. The minimum term is 12 months, and after that, tenures are available in multiples of 3 months up to a maximum of 10 years. At Yes Bank, the smallest monthly payment is Rs 1,000.
Previously, Yes Bank changed the interest rates for senior citizen FDs for domestic deposits under Rs 2 crore on 10 August 2022. Senior citizen customers can now receive 7.25 per cent interest on deposits with a term of three years and 7.50 per cent interest on deposits with a maturity of five years.
