New Delhi: After the increase in the repo rate of the Reserve Bank, banks have started giving higher returns on deposits along with increasing the interest rates of loans. In this episode, now the private sector Yes Bank has increased the interest rates of its FD, which have also come into effect from August 10 today.

According to the bank's website, interest rates have been increased for different tenures on deposits of less than 2 crores. The bank is now paying 3.25 percent interest to those who have FDs from 7 days to 14 days, while it is offering 3.50 percent interest on FDs from 15 days to 45 days. Similarly, an FD of 46 days to 90 days is paying 4.10 percent interest and an FD of 3 months to 6 months is paying 4.75 percent.

Interest in one year FD also increased

Yes Bank is now offering 6.25 percent interest on FDs ranging from one year to 18 months. Similarly, interest rates on fixed deposits ranging from 18 months to 3 years and from 3 years to 10 years have also been increased to 6.75 percent. The bank has made this increase due to the increase in the repo rate by 0.50 percent.

Higher interest in senior citizens

Yes, Bank is offering higher interest on FDs to senior citizens. According to the bank, in addition to the regular rate on FDs from 7 days to 3 years, 0.50 percent more interest is being given to senior citizens. Similarly, an additional return of 0.75 percent is being given in addition to the regular interest on FDs of 3 years to 10 years. After today's increase, the overall interest rate for senior citizens has reached from 3.75 percent to 7.50 percent.

Higher penalty for premature withdrawal

Yes Bank, along with increasing interest rates on deposits, is also levying higher penalties on premature withdrawal of FDs. The new penalty charges of the bank have come into effect from August 8. Under this, a penalty of 0.50 percent will now be levied on premature withdrawal of FDs with a tenor of fewer than 181 days, which was 0.25 percent earlier.

Similarly, the penalty has now been increased from 0.50 percent to 0.75 percent on FDs with a tenure of more than 182 days. This penalty will be applicable on all deposits with an amount less than Rs 5 crore.