Yes Bank RD Rates 2024 – Features & Calculation

Yes Bank is the fourth largest private bank in India and it offers a plethora of financial services to people. With the attractive Yes Bank RD rate, you get an excellent option for long-term investment. Not only this, it encourages people to develop savings habits as well as become ardent financial planners. Here are some of the exclusive features of Yes Bank Recurring Deposits:

Yes Bank RD Interest Rates 2024 (Below ₹2 Crore) 

The Yes Bank RD rate for general and senior citizens are as follows:

Note that the Yes Bank RD interest rate keeps changing. So, make sure to verify it from the official website before opening and interest rates. Before opening a Yes Bank account, know some of its exclusive features.

Features of Yes Bank Recurring Deposit Interest Rates 2024

Following are some of the salient features of RD interest rate Yes Bank 2023:

1. You will need to deposit a minimum of ₹1,000 to open an RD account.
2. The maximum amount you can invest is ₹1.99 crore for each instalment. 
3. The interest rates of Yes Bank RD accounts are compounded annually.
4. The tenure of the RD account of Yes Bank ranges between 6 months and 10 years.
5. For premature withdrawal, a penalty at a 1% rate is charged on the pre-decided interest rate of the RD.
6. You will not have to pay any penalty for premature withdrawal of RD.
7. There is complete flexibility in topping up your RD investments.

To reap maximum benefits from these features of Yes Bank RDs, you can open an account both online and offline.

How to Open an RD in Yes Bank Online?

Following are the steps that you will need to follow to open a Yes Bank recurring deposit online:

• Step 1: Visit the official website of Yes Bank.
• Step 2: Log in to the Net banking account using your credentials.
• Step 3: Go through the RD account types to select the right one.
• Step 4: Click on the ‘Apply Now’ button and open the application form.
• Step 5: Fill out the application form with accurate details.
• Step 6: Upload the necessary documents and decide the deposit amount.
• Step 7: Finally, click on the ‘Submit’ button and transfer the necessary amount.

However, if you are not comfortable with the online process, you can even go for the offline process to open an RD account.

How to Open an RD in Yes Bank Offline?

Here are the steps that you can follow to open an account offline to benefit from the attractive RD rates of Yes Bank:

• Step 1: Visit the nearest branch of Yes Bank.
• Step 2: Request for RD account opening form from the representatives.
• Step 3: Fill out the application form accurately with all the necessary details.
• Step 4: Submit the form along with all the necessary documents and initial deposit amount.

Once done, your request for opening a Yes Bank RD account will be processed. Also, to make the most out of your investments, you can use an RD calculator to decide the initial investment and tenure.

How to Calculate RD Interest Rates in Yes Bank?

You can calculate the returns based on the Yes Bank RD interest rates either manually or by using an online calculator.

1. Using RD Calculation Formula

You can use the following RD calculation formula if you want to go for manual calculations:

A= P x (1+R/N) ^ (NT)

According to this formula,

• A represents the maturity value
• P represents the invested amount over the months
• R represents the interest rate of a recurring deposit
• N represents the number of times the interest is compounded in a year
• T represents the tenure of your RD account.

For example, if you invest ₹1000 in your RD account every month for 12 months at 7.25% compounded once a quarter, the total returns are calculated as follows:

A = P x (1+R/N) ^ (NT)

= 12000 X (1 + 7.25/4) ^ (4X12/12)

= ₹12,478

2. Using an Online RD Calculator 

Below are some hassle-free steps that you can follow to use an online Yes Bank recurring deposit calculator:

• Step 1: Move to the official website of the financial institution.
• Step 2: Navigate to the “Calculator” page present on the website.
• Step 3: Select the “RD calculator” from the available options.
• Step 4: Move the sliders to enter the necessary data such as your investment amount, rate of interest and tenure.

Once done, you will get a clear estimation of the amount invested, estimated returns, and total value. After getting these data, you need to check the eligibility criteria as well.

Eligibility Criteria to Start an RD Account with Yes Bank

The following are the people who are eligible for opening an RD with Yes Bank:

1. Citizens of India
2. Hindu Undivided Families
3. Non-Resident Indians (NRIs)
4. Sole proprietorships
5. Corporations
6. Partnerships
7. Trusts
8. Clubs
9. Societies
10. Minors (under the supervision of legal guardian)

At times, banks might set additional eligibility criteria. So, verify from the official website before proceeding. Once you are sure about fulfilling the eligibility criteria, you can arrange the necessary documents and begin the application process.

Documents Required for Starting an RD Account in Yes Bank

Following are some of the necessary papers that you need to furnish for opening an RD account in Yes Bank:

1. Identity proof papers like Aadhaar cards and Voter ID cards
2. Copies of PAN card
3. Form 60 or 61 (when a PAN card is not available)
4. Address proof documents like utility bills and passport
5. Passport size photos

You might need to submit additional papers if the representatives ask when opening an RD account. Also, the document requirements might vary with the type of account that you are opening.

Types of Yes Bank RD Accounts 

Following are the different types of Yes Bank RD accounts that investors can explore:

1. Recurring Deposit Account

The regular RD account is a popular option for long-term savings. Yes Bank allows you to open a regular RD with an amount as low as ₹1000 per month. The instalments can be paid only in multiples of 100. Senior citizens get an additional 0.75% interest rate. Some of its features include:

• Minimum Deposit: ₹1000
• Maximum Deposit: No upper limit
• Tenure: 6 months to 10 years
• Interest Rate: For general citizens, the interest rates range between 6.10% and 7.75% p.a. For senior citizens, the interest rates range between 6.60% and 8.25% p.a.
• Eligibility: Residents of India

2. NRE Recurring Deposit Account

This scheme is specifically designed for investors who reside abroad for work, study or any other reasons. The deposit tenure starts from 12 months and thereafter is available in multiples of 3. The features of this type of RD account are as follows:

• Minimum Deposit: ₹1000
• Maximum Deposit: No upper limit
• Tenure: 12 months to 10 years
• Interest Rate: The interest rates range between 6.10% and 7.75% p.a.
• Eligibility: Non-Indian residents

3. Flexi-gain Recurring Deposits

As the name suggests, for this type of account, there is complete flexibility in your investment pattern. There is no monthly instalment commitment that you will need to fulfil. You can top up your investment by paying as little as ₹100 for a minimum of 3 times. Its features include:

• Minimum Deposit: ₹1000
• Maximum Deposit: ₹5,00,000
• Tenure: 6 months to 10 years
• Interest Rate: For general citizens, the interest rates range between 6.10% and 7.75% p.a. and for senior citizens the interest rates range between 6.60% and 8.25% p.a.
• Eligibility: Residents of India

However, if you are not able to pay off the instalments on time, you need to pay a certain amount as a penalty.

Yes Bank RD Premature Withdrawal Rules 

Following are some rules associated with Yes Bank RD premature withdrawal that you should abide by:

• Account holders in urgent need of funds can opt for premature withdrawal from their Yes Bank RD account.
• You will have to pay a nominal penalty on the interest earned from your deposits in the RD account.
• You will receive the interest at the rate associated with the duration for which you have kept the money in your RD account.
• In case you hold an NRE account and you pull out money from it before 12 months, you will not receive the interest accumulated on it.

Yes Bank RD Penalty 

You will have to pay a penalty on your RD accounts in case of the following scenarios:

• You will have to pay a penalty of 1% in case you miss out on the payments of monthly deposits.
• A 1% penalty on interest is also available on Yes Bank RD accounts in case you make premature withdrawals.
• However, no such penalty is levied in case you pre-close your Flexi-Gain Recurring deposit account.

Also, you should be aware of the Yes Bank RD premature withdrawal rules so you can pull out money from your deposits as and when needed.

Once you have made up your mind for premature withdrawal, you can close your Yes Bank RD account in some hassle-free steps.

How to Close Yes Bank RD Account Offline?

Following are the steps to close your RD account offline:

• Step 1: Visit your nearest Yes Bank branch.
• Step 2: Request an RD closure form.
• Step 3: Fill it up using accurate details.
• Step 4: Attach the necessary documents.
• Step 5: Submit the papers along with the RD certificate.

Also, you should know if the interest earned on your Yes Bank RD is taxable or not so you can accurately estimate your returns.

TDS on Yes Bank RD

If the interest earned on your deposits in RDs exceeds a certain threshold, you will have to pay a TDS of 10% as per the Income Tax Act, 1961. For general depositors, this limit is ₹40,000 in interest payments in a financial year, while it is ₹50,000 for senior citizens. 

However, if you have not updated your PAN by the time of withdrawal, you will have to pay TDS at a rate of 20%. Also, there might be additional taxes that you will have to pay as per the individual income tax slab of the RD account holder.

Loan Against Yes Bank Recurring Deposit 

You have the option of taking a loan against your Yes Bank RD account in case of urgent fund needs. This is because they view your RD investments as collateral. With this facility, you can save yourself from going through the hassles of separately applying for a loan. To know in detail about the percentage of the amount that you will get as a loan, you can talk to the bank representatives.

Final Word

The high-yielding Yes Bank RD rate helps you use this investment tool for the purpose of wealth creation. All you will need to do is put aside a small portion of your savings every month so you can receive a lump-sum amount at the end of your tenure. This provides an opportunity for people with fixed incomes so they can fulfil their financial goals on time.

FAQs

Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.