YES Bank launches Fixed Deposits with floating interest rate
The new floating rates will be linked to RBI's repo rate
Here are the details
Arrow
Background
Bank FD interest rates are usually fixed when you open a new one
They are usually changed regularly on repo rate change
Repo rate is the rate at which central bank lends to commercial banks
What has happened?
YES Bank has introduced a unique floating rate FD scheme
The floating rate FD will adapt to FD rates as repo rate changes
The process will be completely automated
Consequences
Users will no more be locked to FD rates at time of opening
They will be able to take advantage of expected repo rate hikes in the future
Dynamic returns will help FDs compete with interest rates of bonds
Market in numbers
Average FD interest rate: 5-5.5%
Last repo rate hike: 0.25% in June 2022
YES Bank FD interest rates: Up to 7.25% for senior citizens
Want to know more about how to take advantage of growing rates?
Here is an ultimate guide to the best banks for FD in India in 2022!
Read more