Summary : YES Bank Limited’s official fixed-deposit page, checked on 7 November 2026, displays resident callable fixed-deposit rates effective 2 June 2026 for deposits below ₹3 crore. The highest regular rate in that table is 7.25% per annum for 18 months 1 day to less than 24 months; the eligible resident senior-citizen rate for the same band is 7.75%. Rates vary materially by exact tenure, with annualised yields separately displayed for cumulative treatment. Interest may be paid quarterly, reinvested with quarterly compounding or paid monthly at a discounted value. Premature withdrawal is permitted, but the bank recalculates interest using the rate available on the booking date for the period actually completed and applies the relevant penalty; under the current published penalty table, eligible senior citizens booking or renewing from 16 May 2022 are exempt from that penalty. Interest remains taxable under the Income-tax Act, 2025, and DICGC insurance is capped at ₹5 lakh for principal and interest together per depositor per bank in the same right and capacity. This is a neutral verification guide, not a recommendation or ranking.
- Official Rate Card for Deposits Below ₹3 Crore
- Payout Choice Changes Cash Flow and Yield
- Quarterly and Reinvestment Options
- Monthly Interest Is Discounted
- Short Tenures Use Simple Interest
- Premature Withdrawal Reprices the Deposit
- Income-Tax Treatment for Tax Year 2026-27
- Interest Remains Taxable Even Without TDS
- Section 393 Replaces the Old Section Reference
- DICGC Cover Is ₹5 Lakh and Bank-Wide
- Booking and Record Controls
- Frequently Asked Questions
- What is the highest regular rate in the displayed retail table?
- What is the senior-citizen rate for that tenure?
- Are the rates guaranteed until money is booked?
- Can the deposit be closed early?
- Do eligible senior citizens pay a premature penalty?
- Does no TDS mean the interest is tax-free?
- Which Act applies to interest credited after 1 April 2026?
- How much DICGC protection applies?
- Key Takeaways
Official Rate Card for Deposits Below ₹3 Crore
The official YES Bank page states that its displayed fixed-deposit rates for deposits below ₹3 crore are effective from 2 June 2026. The table is customer- and tenure-specific. A depositor should match the exact number of days on the issued receipt to the applicable row; a maturity date on the boundary can move the deposit into another rate band. The regular and senior-citizen columns show nominal annual rates and annualised yields, which are not interchangeable.
| Tenure | Regular rate | Senior-citizen rate |
|---|---|---|
| 7 to 14 days | 3.25% | 3.75% |
| 15 to 45 days | 3.50% | 4.00% |
| 46 to 90 days | 4.50% | 5.00% |
| 91 to 120 days | 4.75% | 5.25% |
| 121 to 180 days | 4.75% | 5.25% |
| 181 to 271 days | 6.00% | 6.50% |
| 272 to 335 days | 6.25% | 6.75% |
| 336 days to under 12 months | 6.50% | 7.00% |
| 12 months | 6.65% | 7.15% |
| 12 months 1 day to under 18 months | 6.75% | 7.25% |
| 18 months | 6.75% | 7.25% |
| 18 months 1 day to under 24 months | 7.25% | 7.75% |
| 24 months to under 35 months | 7.00% | 7.50% |
| 35 months | 6.90% | 7.40% |
| 35 months 1 day to under 36 months | 7.00% | 7.50% |
| 36 months to under 60 months | 7.00% | 7.75% |
| 60 months | 6.75% | 7.50% |
| 60 months 1 day to 120 months | 6.75% | 7.50% |
The bank identifies senior-citizen rates as available only to resident customers. A higher displayed rate is not automatically applied merely because an individual turns 60 during the term; eligibility and age must be accepted under the bank’s booking rules. Rates are subject to change at the bank’s discretion, while an accepted receipt should evidence the contracted rate for that booking.
Payout Choice Changes Cash Flow and Yield
Quarterly and Reinvestment Options
The bank states that interest may be paid quarterly or compounded quarterly under the reinvestment option. The displayed annualised yield reflects compounding assumptions and should not be read as the nominal coupon. A cumulative maturity value depends on principal, exact tenure, day count, compounding, tax deduction and any premature closure. The receipt and maturity instruction are more reliable than a marketing headline.
Monthly Interest Is Discounted
Monthly payout is available at a discounted value because interest is paid before the standard quarterly interval. A depositor who needs periodic cash flow should compare the bank’s actual monthly payout quote with the cumulative option. Multiplying the nominal annual rate by principal and dividing by twelve will not necessarily match the credited amount.
Short Tenures Use Simple Interest
For deposits below six months and one day, the bank’s published terms state that interest is calculated at maturity as simple interest. This makes the annualised-yield column less useful for estimating a short-tenure cash amount. Booking date, maturity date and actual day count should be used.
Premature Withdrawal Reprices the Deposit
YES Bank permits premature withdrawal of a resident callable fixed deposit. Interest is recalculated at the rate that prevailed on the original booking date for the period for which the deposit actually remained with the bank, and then the applicable penalty is considered. The contracted long-tenure rate does not simply run until the closure date. The depositor should request a pre-closure quotation showing the completed tenure, base rate and penalty.
| Completed tenure / category | Published penalty treatment |
|---|---|
| Up to and including 181 days, bookings from 3 November 2023 | 0.75 percentage point penalty |
| 182 days and above, bookings from 3 November 2023 | 1.00 percentage point penalty |
| Eligible senior-citizen FD booked or renewed from 16 May 2022 | Nil premature-withdrawal penalty |
| Deposit value ₹5 crore or above | Separate published structure; current table notes 0.25% |
| Domestic deposit withdrawn within 7 days | No interest payable under the stated terms |
The penalty table applies to full and partial withdrawals and to sweep-in pre-closures under the bank’s published terms. The senior-citizen waiver removes the penalty but does not preserve the original contracted tenure rate; repricing to the rate for the period actually completed still matters. A booking made under an older penalty regime must be evaluated under the regime applicable on its booking or renewal date.
Income-Tax Treatment for Tax Year 2026-27
Interest Remains Taxable Even Without TDS
Fixed-deposit interest is taxable according to the depositor’s status and applicable head of income. TDS is only a collection mechanism. If the bank does not deduct because the statutory threshold is not crossed or a valid declaration applies, the interest may still be taxable and reportable. Cumulative deposits can create annual accrual and information-reporting entries before cash maturity. The bank interest certificate, Form 26AS and Annual Information Statement should be reconciled to the return or books.
Section 393 Replaces the Old Section Reference
For a credit or payment event on or after 1 April 2026, the Income-tax Act, 2025 governs withholding. Section 393 consolidates non-salary TDS. For interest other than securities paid by a banking company, the statutory threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen. The threshold is not a tax exemption. The applicable rate, PAN consequences and declaration process must be checked under the current Finance Act, rules and portal instructions.
Some YES Bank webpage language still refers to legacy section numbers from the Income-tax Act, 1961. The Income Tax Department’s transition FAQ states that old provisions govern events up to 31 March 2026, while transactions from 1 April 2026 use the 2025 Act and the relevant section 393 table item. Depositors and bank teams should follow the current statute rather than copying an obsolete section label into a 2026-27 record.
DICGC Cover Is ₹5 Lakh and Bank-Wide
YES Bank appears on the RBI list of scheduled private-sector banks and on the DICGC insured-bank list checked for this article. DICGC protection is limited to ₹5 lakh for principal and accrued interest together per depositor per bank in the same right and same capacity. Savings, current, recurring and fixed deposits across all branches of the same bank are aggregated for that capacity. Multiple receipts or channels do not multiply the limit.
Different rights and capacities may receive separate treatment under DICGC rules, but the legal ownership pattern controls. A sole-proprietor balance is aggregated with the proprietor’s individual balance. Joint accounts with the same names in the same order are aggregated together. Insurance applies through the statutory mechanism upon a covered bank event; it is not immediate liquidity protection and does not cover amounts above the ceiling.
Booking and Record Controls
- Save the official rate table and effective date on the day clear funds are placed.
- Match principal, exact tenure, resident status, age category and payout choice to the receipt.
- Confirm nomination, maturity instruction, auto-renewal setting and lien or sweep features.
- Request the bank’s completed-tenure calculation before any partial or full premature closure.
- Estimate total YES Bank interest for section 393 TDS and return-reporting purposes.
- Aggregate all YES Bank balances in the same right and capacity for DICGC analysis.
- Retain the application, receipt, interest certificate, Form 26AS/AIS reconciliation and closure or maturity advice.
Frequently Asked Questions
What is the highest regular rate in the displayed retail table?
The official page shows 7.25% per annum for 18 months 1 day to less than 24 months.
What is the senior-citizen rate for that tenure?
The displayed rate is 7.75% per annum for an eligible resident senior citizen.
Are the rates guaranteed until money is booked?
No. The bank states that rates can change; the issued receipt evidences the accepted booking terms.
Can the deposit be closed early?
Yes, but interest is repriced to the original-date rate for the completed tenure and the applicable penalty is considered.
Do eligible senior citizens pay a premature penalty?
The published terms state nil penalty for eligible senior-citizen FDs booked or renewed from 16 May 2022, although repricing still applies.
Does no TDS mean the interest is tax-free?
No. TDS thresholds do not determine final taxability or return reporting.
Which Act applies to interest credited after 1 April 2026?
The Income-tax Act, 2025 applies, with bank-interest withholding addressed under section 393.
How much DICGC protection applies?
Up to ₹5 lakh for principal and interest together per depositor per bank in the same right and capacity.
Key Takeaways
- The official retail table is effective 2 June 2026 for deposits below ₹3 crore.
- The highest displayed regular and eligible senior rates are 7.25% and 7.75% for the specified tenure band.
- Monthly payout is discounted, while reinvestment uses quarterly compounding under the bank’s terms.
- Premature closure changes the applicable tenure rate and may add a penalty.
- Interest is taxable, and DICGC cover is capped and aggregated at the bank level.
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Disclaimer: This article is a neutral educational summary of YES Bank Limited’s resident callable fixed-deposit rates and terms, official Income Tax Department material and DICGC information checked on 7 November 2026. It is not an offer, solicitation, ranking, comparison, recommendation, credit opinion, personalised investment advice, tax return advice or assurance that any rate, tenure, channel, age benefit, penalty waiver or facility will remain available. The booking rate depends on the bank’s live card when clear funds are accepted, the exact principal and number of days, residence and customer category, payout option, application, KYC and issued receipt. Annual rate, annualised yield, monthly payout and cumulative maturity value are different measures. Premature withdrawal can materially reduce interest because the original-date rate for the completed tenure, the booking-date penalty regime, minimum-tenure rules and partial-withdrawal terms apply. Taxability, TDS, PAN consequences and declaration eligibility depend on the Income-tax Act, 2025, the applicable Finance Act, rules, full estimated income and the timing of credit or payment; legacy section references on a product page should not override current law. DICGC protection depends on insured-bank status, covered events, set-off, ownership and aggregation rules and is limited to ₹5 lakh for principal and interest together in the same right and capacity. Readers should verify the latest bank rate page, receipt, tax provisions and DICGC list immediately before acting and obtain qualified professional advice. TaxGuru accepts no responsibility or liability for rate changes, calculation differences, premature-closure loss, tax or TDS consequences, uninsured balances, delayed access, bank action or any other outcome arising from reliance on this article.
