Yes Bank Short Term FD

What is Yes Bank Short Term FD?

Yes Bank Short Term FD means short-duration fixed deposits provided by Yes Bank, allowing you to place a portion of your savings for specific short-term tenures and receive assured fixed interest returns. As stated on the bank’s official site, these FDs help you use surplus funds or fulfil short-term financial goals with assured returns and a predictable maturity value clearly.

The typical tenure coverage for such deposits starts from 7 days and extends up to 1 year, making them suitable for temporary cash allocation. Retail depositors, including resident retail investors, can open these FDs with a simple minimum amount. Senior citizens receive preferential interest rates above the standard rates offered to the general public, improving the overall returns on your short-term deposits.

Yes Bank Short Term FD Interest Rates

Yes Bank Short Term FD interest rates depend on deposit tenure and depositor classification, while rates stay fixed per annum at your booking time. With shorter tenures, you receive lower returns, while longer short-term periods offer higher rates. Senior citizens receive preferential rates over the general public. Once booked, Yes Bank FD interest rates stay fixed for the entire deposit tenure, although the bank may update its rate structure periodically for different tenures and depositor categories.

*Yes Bank Short Term FD rates w.e.f. 1st December, 2025

Features of Yes Bank Short Term FD

Yes Bank Short Term FD provides useful features created to give flexibility, steady returns, and easy access to funds for your short-term savings needs.

• Short Tenure Flexibility: You can invest for periods from 7 days up to 1 year, allowing alignment with short-term financial goals and cash flow requirements.
• Minimum Deposit Requirements: A minimum deposit is required, which is communicated at booking and may be revised by the bank.
• Assured and Fixed Returns: Interest rates stay fixed per annum from the date of deposit and do not change during the tenure, providing predictable returns.
• Premature Withdrawal Facility: You may be allowed to withdraw your FD before maturity, with penalties as per the bank’s rules.
• Loan or Overdraft Against FD: Eligible FDs can be used as collateral for loans or overdraft facilities, providing liquidity without breaking the deposit.
• Sweep-In and Sweep-Out Option: FDs can be associated with savings/current accounts, so your balances adjust automatically through the Yes Bank auto sweep in facility.
• Auto-Renewal Facility: FDs will be renewed automatically for the same tenure at current rates when instructions are not provided.
• Nomination Facility: You can register one or more nominees for smooth claim settlement in unexpected events.

How to Invest in a Yes Bank Short Term FD

To invest in a Yes Bank Short Term FD, applicants may select either online or offline options, based on personal convenience:

Online Method

You can open your FD digitally without visiting a branch by following these steps:

• FD Booking Through Internet/Mobile Banking: Log in to YES Online or the YES Mobile App and select ‘Open Fixed Deposit’.
• Select Tenure, Amount, and Interest Payout: Specify the deposit amount, decide tenure, and interest payout option.
• Nomination & Sweep‑In Choice: Indicate nomination and sweep-in preferences.
• Confirm Details: Review and confirm your details.
• Authentication: Complete transaction via OTP/MPIN.
• Digital FD Receipt: Receive a digital FD confirmation.

Offline Method

For personal guidance, you can open an FD at any Yes Bank branch:

• Branch Visit: Go to a branch with ID proof.
• FD Application Submission: Fill out the FD application form.
• KYC Verification: Provide identification documents.
• Deposit Funding: Submit a deposit via cheque or transfer.
• Form Submission: Bank staff process your FD.
• Physical FD Receipt: Receive printed FD.

Eligibility Criteria for Yes Bank Short Term FD

To open a short term FD in Yes Bank, you must meet certain eligibility criteria:

• Resident Investor: Only resident Indian persons may open domestic FDs, including for minors when done through a guardian.
• Savings/Current Account Requirement: A valid Yes Bank savings or current account is required to fund the FD.
• Minimum Age & Minor Provisions: Adult depositors must meet age norms; minors can invest via natural or legal guardians.
• Mandatory KYC Compliance: Full KYC verification is required before booking.
• Minimum Deposit Threshold: Deposits commence from the bank-defined minimum amount.
• Senior Citizen Classification: Depositors aged 60+ receive preferential rates.

Tax Aspects of Yes Bank Short Term FD

Interest earned on a Yes Bank Short Term FD counts as taxable income from other sources under the Income Tax Act and must be included in your income tax return. Tax Deducted at Source (TDS) is applicable if the total interest credited or paid in a financial year exceeds the prescribed limits.

For standard depositors, TDS is applicable if interest goes beyond ₹50,000, while senior citizens have a higher threshold of ₹1,00,000. If the total interest is under these limits, you may give Form 15G (general) or Form 15H (senior citizens) to the bank to stop TDS deduction. Even if TDS is not deducted, you are required to declare all FD interest while filing returns and pay any tax applicable as per your income slab.

Key Takeaways

Yes Bank Short Term FD allows low-risk investment over durations of 7 days to 1 year, giving guaranteed returns with liquidity. Interest rates are 6.65% p.a. for the general public and 7.15% p.a. for senior citizens. Always compare rates and features across banks before investing to maximise benefits.