Yes Bank Slashes FD Rates Again! April 2025 Update: Now Just 8.25% – Should You Still Invest?

Yes Bank cuts FD rates again in April 2025 – now offers up to 8.25%! How does this impact your savings? Compare with top banks & discover better fixed deposit options. Latest Yes Bank FD rates 2025 revealed – is your money still growing? Check now & explore higher-yield alternatives!

Yes Bank has slashed its fixed deposit (FD) interest rates for the second time in April 2025, aligning with broader market trends following the Reserve Bank of India’s (RBI) recent monetary policy adjustments. The revised rates, effective from April 21, 2025, offer up to 7.75% per annum for general citizens and up to 8.25% for senior citizens on select tenures. This development has sparked discussions among investors seeking safe and stable investment options in India’s dynamic financial landscape. In this comprehensive blog post, we’ll delve into the details of Yes Bank’s latest FD rate cut, its implications for investors, and how it compares to other banks.

Understanding Yes Bank’s FD Rate Cut: What’s New?

Yes Bank, a leading private sector bank in India, has revised its fixed deposit interest rates for retail investors, reducing the highest offer to 7.50% from 7.75% for general customers, as reported by Business Standard on April 22, 2025. The new rates apply to deposits below ₹3 crore, with tenures ranging from 7 days to 10 years. For general citizens, the FD rates now range from 3.25% to 7.75%, while senior citizens can earn between 3.75% and 8.25%. The highest rates—7.75% for general customers and 8.25% for senior citizens—are available for tenures of 12 to 24 months.

This marks the second FD rate cut by Yes Bank in April 2025, following an earlier revision that aligned rates with the RBI’s repo rate cut of 0.25% in February 2025. The RBI’s Monetary Policy Committee (MPC) is expected to consider further rate reductions in its April 7–9 meeting, which could influence banks to trim deposit rates further. According to Adhil Shetty, CEO of Bankbazaar.com, “Consensus among economists suggests multiple repo rate cuts in 2025, potentially up to 100 basis points, as inflation eases and global trade complexities impact growth.”

Why Are Banks Cutting FD Rates?

The recent wave of FD rate reductions, including Yes Bank’s, is driven by several macroeconomic factors:

1. RBI’s Repo Rate Cut: The RBI reduced the repo rate by 0.25% to 6.25% in February 2025, prompting banks to adjust lending and deposit rates. Lower repo rates reduce the cost of borrowing for banks, allowing them to offer lower interest rates on deposits.
2. Easing Inflation: With inflation stabilizing, banks face less pressure to offer high FD rates to attract depositors.
3. Deposit Mobilization Pressures: Despite the repo rate cut, banks delayed rate reductions due to year-end deposit mobilization challenges. However, as liquidity improves, banks like Yes Bank, HDFC Bank, and Bandhan Bank have started trimming rates.

For investors searching for Yes Bank fixed deposit rates 2025 or best FD rates in India, these changes signal a shift in the fixed deposit landscape, urging depositors to act swiftly to lock in higher rates before further cuts.

Yes Bank FD Rates 2025: A Detailed Breakdown

Let’s explore the revised Yes Bank FD rates effective from April 21, 2025, for deposits below ₹3 crore:

• General Citizens:
  • 7 days to 14 days: 3.25%
  • 15 days to 45 days: 3.70%
  • 46 days to 90 days: 5%
  • 91 days to 120 days: 5%
  • 121 days to 180 days: 5.00%
  • 181 days to 271 days: 6.25%
  • 12 months to 60 months: 7.50% (highest)
  • 5 years to 10 years: 7%
• Senior Citizens:
  • 7 days to 14 days: 3.75%
  • 15 days to 45 days: 4.20%
  • 46 days to 90 days: 5.50%
  • 91 days to 120 days: 5.50%
  • 121 days to 180 days: 5.50%
  • 181 days to 271 days: 6.75%
  • 36 months to < 60 months: 8.25% (highest)
  • 5 years to <=10 years: 7.75%

Note: Interest rates are subject to change at the bank’s discretion. Always check the latest rates on Yes Bank’s official website before investing.

Key Features of Yes Bank Fixed Deposits

Yes Bank offers a range of FD schemes tailored to diverse investor needs, making it a popular choice for those searching for safe investment options in India. Here are some highlights:

• Minimum Deposit: ₹10,000, with no upper limit for most schemes.
• Tenure Flexibility: Options range from 7 days to 10 years, catering to short-term and long-term financial goals.
• Tax-Saving FD: Offers a 5-year lock-in period with tax deductions up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961. The interest rate for this scheme is 7.25% for general citizens.
• Premature Withdrawal: Available with a penalty of 0.5% for tenures of 182 days or more. No penalty applies for senior citizen FDs booked or renewed after May 16, 2022.
• Loan Against FD: Investors can avail loans up to 90% of the FD amount at 6–8% interest, restricted to the FD’s tenure.
• Sweep-In Facility: Links FDs to savings accounts for enhanced liquidity.
• Online Booking: FDs can be opened via Yes Bank’s website, mobile app, or branches, ensuring convenience.

For those researching Yes Bank FD schemes 2025, these features provide flexibility, safety, and competitive returns, despite the recent rate cut.

How Does Yes Bank Compare to Other Banks?

To help investors searching for best fixed deposit rates in India 2025, let’s compare Yes Bank’s FD rates with those of other leading banks as of April 2025:

• HDFC Bank: Offers up to 7.25% for general citizens and 7.75% for senior citizens on a 21-month tenure, post a rate cut effective April 1, 2025.
• SBI: Discontinued its Amrit Kalash scheme (7.10% for 400 days) on March 31, 2025. Current rates range from 3.50% to 7.00% for general citizens and 4.00% to 7.50% for senior citizens.
• ICICI Bank: Provides 3.00% to 7.20% for general citizens and 3.50% to 7.70% for senior citizens, with preferential rates for select tenures.
• Bandhan Bank: Offers up to 8.00% for callable bulk deposits (12 months) and 8.30% for non-callable bulk deposits above ₹3 crore.

Yes Bank’s 7.75% for general citizens and 8.25% for senior citizens remain competitive, especially for tenures of 12 to 24 months. However, investors exploring highest FD interest rates 2025 may find small finance banks or non-banking financial companies (NBFCs) offering marginally higher rates, albeit with higher risk.

Implications for Investors: Should You Lock in Now?

The second FD rate cut by Yes Bank in April 2025 underscores a broader trend of declining interest rates, prompting investors to act strategically. Here’s why locking in FDs now could be prudent:

• Anticipated Rate Cuts: With the RBI’s MPC meeting scheduled for April 7–9, 2025, further repo rate reductions could lead to additional FD rate cuts. Locking in current rates protects returns.
• High Returns for Short Tenures: Yes Bank’s 12 to 24-month FDs offer the highest rates, ideal for short-term savings goals.
• Senior Citizen Benefits: The additional 0.50% for senior citizens makes Yes Bank FDs attractive for retirees seeking safe investment options for seniors.

Adhil Shetty advises, “Investors should consider special tenors between 365 and 730 days to secure premium rates before they fall further.” For those searching how to invest in fixed deposits 2025, Yes Bank’s online platform simplifies the process, requiring only KYC documents and a minimum of ₹10,000.

Tax Implications of Yes Bank FDs

Interest earned on Yes Bank FDs is taxable as per the investor’s income tax slab. Key points to note:

• TDS: Tax is deducted at source if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below the taxable limit.
• Tax-Saving FD: The 5-year FD allows deductions up to ₹1.5 lakh under Section 80C, but interest remains taxable.

Investors researching tax-saving fixed deposits 2025 should consider Yes Bank’s scheme for its competitive rate and tax benefits.

How to Open a Yes Bank FD in 2025

Opening a Yes Bank FD is seamless, whether online or offline:

1. Online:
   • Log in to Yes Bank’s net banking or mobile app.
   • Navigate to “Open New Fixed Deposit.”
   • Enter deposit amount, tenure, and nomination details.
   • Confirm with an OTP sent to your registered mobile number.
2. Offline:
   • Visit a Yes Bank branch.
   • Fill out the FD application form and submit KYC documents (Aadhaar, PAN, etc.).
   • Receive a deposit receipt upon verification.

For those searching how to open Yes Bank FD online, the bank’s digital channels ensure a hassle-free experience.

Is Yes Bank FD Still a Good Choice?

Despite the second FD rate cut in April 2025, Yes Bank remains a compelling option for investors seeking safe and high-return fixed deposits in India. With rates up to 7.75% for general citizens and 8.25% for senior citizens, flexible tenures, and features like tax-saving FDs and loans against deposits, Yes Bank caters to diverse financial goals. However, with potential further rate cuts looming, investors should act quickly to lock in current rates, especially for 12 to 24-month tenures.

Disclaimer: Interest rates and terms are subject to change. Verify details with Yes Bank official website before investing.