Introduction
For 2024, Yes Bank continues to offer competitive options for Non-Resident Indians (NRIs) through its Non-Resident Ordinary (NRO) Fixed Deposits (FDs). In this blog, we will delve into the latest interest rates, key features, and the broad range of benefits that Yes Bank's NRO FDs provide. Aimed at empowering NRIs to effectively manage and grow their earnings within India, this blog will equip you with all the necessary information to make informed financial decisions.
Features of Yes Bank NRO Fixed Deposits
Yes Bank's NRO Fixed Deposits stand out in the competitive banking landscape due to their unique features and benefits tailored to NRIs and Persons of Indian Origin (PIOs). Here's a detailed look at what they offer:
- High Returns: One of the primary reasons for the popularity of Yes Bank NRO FD is the promise of high returns on investments. The bank ensures that your hard-earned money grows steadily over time.
- Digital Fixed Deposit Booking: In today's digital age, Yes Bank ensures that its customers enjoy the convenience of online banking. You can easily book your Yes Bank NRO fixed deposit online, eliminating the need for physical visits to the bank.
- Tax-Applicable: It's essential to note that the interest earned on Yes Bank NRO FD is subject to taxation. This is in line with the prevailing tax norms in India.
- Repatriable: While the principal amount in the NRO FD is non-repatriable, the interest earned can be repatriated after deducting the applicable taxes. This feature provides flexibility to NRIs who might need to transfer their earnings abroad.
- Flexible Tenures: Whether you're looking for a short-term investment or a long-term one, Yes Bank NRO FD has got you covered. With flexible tenure options ranging from a few days to several years, you can choose a term that aligns with your financial goals.
NRE vs. NRO Fixed Deposits: Understanding the Difference
For Non-resident Indians, choosing the right type of account to manage their finances in India can be a tad confusing. The two primary options are the Non-resident External (NRE) and Non-resident Ordinary (NRO) accounts. These accounts can be in the form of savings, current, recurring, or fixed deposits. However, they serve different purposes and come with distinct features:
Purpose
- NRE Fixed Deposits: Ideal for NRIs who earn in foreign currency outside India and wish to convert it to Indian currency denominations. It's primarily used for parking foreign income in India.
- Yes Bank NRO FD: Designed for NRIs to deposit their Indian income, such as rent, dividends, or any other income generated in India.
Repatriation
- NRE Fixed Deposits: Both the principal amount and the interest earned are fully repatriable.
- Yes Bank NRO FD: While the principal amount is non-repatriable, the interest earned can be repatriated after deducting applicable taxes.
Taxation
- NRE Fixed Deposits: The interest earned is exempt from tax under section 10(4) of the Income Tax Act.
- Yes Bank NRO FD: Interest is subject to Tax Deducted at Source (TDS) as per prevailing Indian tax laws.
Joint Account Holding
- NRE Fixed Deposits: Can only be jointly held with other NRIs.
- Yes Bank NRO FD: Can be jointly held with other NRIs, PIOs, OCIs, or even Resident Indians.
An NRE account is suitable if an NRI wishes to manage their foreign currency earnings in INR. On the other hand, for earnings generated in India, the Yes Bank NRO FD is the go-to option.
Overdraft Facility on Yes Bank NRO FD
One of the standout features of Yes Bank NRO FD is the overdraft facility. This feature allows account holders to avail of a loan against their fixed deposit, ensuring they have funds at their disposal without breaking the FD.
Benefits:
- Competitive Interest Rates: The applicable interest for Non-Resident Individual customers is set at just 1% above the Yes Bank NRO FD rates 2023. This ensures that the loan remains affordable.
- No Processing Charges: Availing the overdraft facility comes with zero processing charges, ensuring maximum savings for the account holder.
- No EMIs: Unlike traditional loans, there's no need to worry about monthly EMIs. The repayment can be made in a lump sum, offering flexibility to the borrower.
- Quick Sanctioning: Whether you choose to book through YES ROBOT or YES MOBILE, the overdraft will be sanctioned within just one working day, ensuring you have quick access to funds.
- No Additional Documentation: The process is hassle-free, with no need for any additional documentation.
This overdraft facility is a testament to Yes Bank's commitment to offering flexible and customer-centric solutions. Whether it's an urgent need or a financial emergency, with Yes Bank NRO FD, you're always covered.
Yes Bank NRO Fixed Deposit Rates 2024
The interest rate is pivotal in determining the returns when investing in fixed deposits. Yes Bank NRO FD Rates 2024 have been structured to offer competitive returns to its NRI customers. Here's a detailed breakdown of the rates for deposits less than Rs. 2 crore, effective from 21st Nov 2023:
Tenure, FD Rates, and Annualized Yield
| Tenure |
FD Rates (% per annum) |
Annualized Yield |
| 7 days to 14 days |
3.25% |
3.25% |
| 15 days to 45 days |
3.70% |
3.70% |
| 46 days to 90 days |
4.10% |
4.10% |
| 91 days to 120 days |
4.75% |
4.75% |
| 121 days to 180 days |
5.00% |
5.00% |
| 181 days to 271 days |
6.10% |
6.24% |
| 272 days to < 1 year |
6.35% |
6.50% |
| 1 year |
7.25% |
7.45% |
| 1 year 1 day to < 18 months |
7.50% |
7.71% |
| 18 months < 24 months |
7.75% |
7.98% |
| 24 months to < 36 months |
7.25% |
7.45% |
| 36 months to < 60 months |
7.25% |
7.45% |
| 60 months |
7.25% |
7.45% |
| 60 months 1 day to <= 120 months |
7.00% |
7.19% |
It's essential to note that these Yes Bank NRO FD rates are subject to change periodically without prior notice. The annualized yields mentioned are compounded quarterly. For deposits equal to or above Rs. 2 cr., it's advisable to contact Yes Bank NRI customer care for the specific interest rate.
Premature Withdrawal Policy for Yes Bank NRO FD
While fixed deposits are meant to be held until maturity, unforeseen circumstances might necessitate premature withdrawal. Understanding the implications of such a decision is crucial. Here's what you need to know about the premature withdrawal policy for Yes Bank NRO FD:
Premature Withdrawal Penalty
For FD deposits booked/renewed with a value less than Rs. 5 cr, the penalty rates are as follows:
Tenure and w.e.f. Dates
| Tenure |
w.e.f. 5th July 2019 |
w.e.f. 16th May 2022 |
w.e.f. 08th August 2022 |
w.e.f. 03rd November 2023 |
| Less than equal to 181 days |
Nil |
0.25% |
0.50% |
0.75% |
| 182 days and above |
0.50% |
0.50% |
0.75% |
1.00% |
Key Points to Remember
- The penalty will be applicable for both partial and full withdrawals.
- For FDs equal to or greater than Rs. 5 cr, a uniform penalty of 0.25% will be applicable for all tenures and values.
- If you're considering breaking your Yes Bank NRO FD, weighing the benefits against the potential loss due to the penalty is essential.
In Conclusion Yes Bank NRO FD is a versatile financial instrument tailored for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). With competitive interest rates, flexible tenures, and many other benefits, it is a reliable investment option for those looking to secure their Indian income.
Whether you're an NRI seeking to capitalize on your Indian earnings or looking for a safe and rewarding investment avenue, Yes Bank's NRO Fixed Deposit ticks all the right boxes. With its commitment to customer satisfaction and a legacy of trust, Yes Bank continues to be a preferred choice for many.
FAQs
Can I open a Yes Bank NRO FD online?
Yes, Yes Bank offers online facilities to open an NRO FD, making the process seamless and convenient for NRIs and PIOs.
Is the interest earned on Yes Bank NRO FD taxable?
Yes, the interest earned on NRO Fixed Deposits is subject to Tax Deducted at Source (TDS) as per prevailing Indian tax laws.
Can I hold the NRO FD jointly with a resident Indian?
Absolutely! The NRO FD can be jointly held with an Indian resident, provided they fall under specific categories of relatives.
What is the difference between NRE and NRO FDs at Yes Bank?
While both are designed for NRIs, NRE FDs are ideal for foreign earnings converted to INR, and both principal and interest are repatriable. NRO FDs are for Indian earnings, and only the interest is repatriable after tax deductions.
Is there a nomination facility for Yes Bank NRO FD?
Yes, investors can nominate either a resident or non-resident individual for their NRO Fixed Deposits.
How is the interest on Yes Bank NRO FD compounded?
The interest on Yes Bank NRO FD is compounded quarterly, ensuring better returns for the depositors.
Can I avail a loan against my Yes Bank NRO FD?
Yes, Yes Bank offers an overdraft facility against NRO FDs, allowing you to meet urgent financial needs without liquidating the deposit.
Are the Yes Bank NRO FD rates 2023 fixed or can they change during the year?
The rates are subject to change periodically based on the bank's discretion and prevailing economic conditions.
What is the minimum tenure for an NRO FD at Yes Bank?
The minimum tenure for an NRO FD at Yes Bank is 7 days.
Is there a penalty for premature withdrawal of the NRO FD?
Yes, a penalty is levied on premature withdrawals, with the rate depending on the tenure of the deposit and the date of booking.
Tejas is an accomplished Chartered Accountant with a passion for finance. With a decade's worth of extensive experience in the banking and credit domain, he has a deep understanding of the financial landscape across consulting and start-ups. In his time away from work, Tejas enjoys sharing his knowledge and helping others understand the intricacies of this complex domain.
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