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Yes Bank hikes penalty rates on premature withdrawal of fixed deposits
- Yes Bank, a private sector lender, has increased the penalty charges for premature withdrawals of fixed deposits.
Yes Bank, a private sector lender, has increased the penalty charges for premature withdrawals of fixed deposits. According to the bank's website, the new penalty charges will be in effect starting from August 8, 2022. The bank raised penalty rates for premature withdrawal of fixed deposits booked for a period of less than equal to 181 days, from 0.25 per cent to 0.50 per cent, a 25 basis point increase. Whereas, the bank has hiked penalty charges for premature discontinuation or withdrawal of fixed deposits booked for a period of 182 days and above by 25 basis points, from 0.50 per cent to 0.75 per cent. Customers who are senior citizens will not be subject to this premature penalty.
According to the website of Yes Bank “Premature withdrawal penalty shall be applicable on all deposits booked / renewed for amount less than INR 5 Crore as per the below table.”
Key points regarding premature penalty as per the website of Yes Bank
1. Premat penalty will be applicable for all types of customers. (eg: Individual, Non-Individual, Senior Citizen, Staff etc.).
2. 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.
3. 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.
4. Premature FD withdrawal penalty interest will be charged for partial as well as full withdrawal.
5. Penalty for premature withdrawal is not applicable on FCNR and RFC deposits.
6. For values >= INR 5 Crs, existing penalty structure shall continue at 0.25% for all tenure & value buckets.
Yes Bank last revised its fixed deposit interest rates on 18th June 2022. Following the revision, the bank is now offering an interest rate of 3.25% - 6.50% to the general public and 3.75% - 7.25% to senior citizens on deposits maturing in 7 days to 10 years. On deposits of less than ₹2 Cr maturing in 18 months to 10 years, the bank is now offering a maximum interest rate of 6.50% for regular customers and 7.00% to 7.25% for senior citizens.
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First Published:16 Jul 2022, 03:07 PM IST
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