YES Bank has hiked interest rate by 100 basis points to 7 per cent on savings bank deposits with balances of over Rs 1 lakh.
The bank offers 6 per cent interest on savings bank deposits for balances below Rs 1 lakh.
This is the second time that YES Bank is hiking interest rate on savings bank deposits after the RBI deregulation.
For the non-resident savings accounts (NRE and NRO), the bank has raised the interest rates by 200 bps to 6 per cent for balance of up to Rs 1 lakh and by 300 bps to 7 per cent for over Rs 1 lakh balance, said a press release issued by the bank.
Further, the interest rates on NRE Fixed Deposits, which were earlier regulated and linked to LIBOR, has also been increased to mirror the resident term deposit rates of 1 year and above, with a peak rate of 9.6 per cent currently. This is in response to the recent development where the RBI deregulated the non-resident deposit rates, said the release.