Floating Rate FD: The special thing about investing in ‘Floating Rate Fixed Deposit’ is that the interest rates on it will keep changing instead of being fixed.
Floating Rate FD: Private sector giant Yes Bank has introduced an attractive option of investment in Fixed Deposits (FD) ‘Floating Rate Fixed Deposit’ to the investors. The special thing about investing in this is that the interest rates on it will keep changing instead of being fixed. According to the release issued by the bank, its rate is linked to the repo rate, that is, if the RBI increases the repo rate, then the rate of interest on your investment will also increase. This type of product has come for the first time in which the FD rates keep changing according to the repo rate instead of being fixed. Now that the rates are rising and there are chances of it increasing further, then this option can be used to get great return on investment.
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Features of Floating Rate FD
- At least 10 thousand rupees have to be invested in this product and you can invest a maximum of 5 crore rupees.
- You can invest money in this for a period of one year to a maximum of 3 years.
- Its benchmark is the repo rate, that is, the rates will be fixed according to the repo rate.
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This is how interest rates will be decided by Repo Rate
RBI has increased the repo rate by 0.90 percent to 4.90 percent in two months in May and June. According to the repo rate of 4.90 percent, Yes Bank is offering interest up to 6.50 percent, depending on the tenure, on investments in floating rate FDs. 6 percent with a repo rate of 4.90 percent and 1.10 percent mark-up rate on investments from 1 year to 18 months, while 4.90 percent with a repo rate of 4.90 percent and 1.60 percent mark-up rate on investments from 18 months to three years. 6.50 percent interest will be available. Mark-up rate is the additional interest rate that Yes Bank offers to the customers in addition to the benchmark rate (here repo rate).
how to invest
For investing in floating rate fixed deposits, you can give a missed call on 07127191191 or contact the nearest branch of Yes Bank, as per the release issued by Yes Bank.