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



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


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!