RBI is expected to increase the repo rate further to tackle inflationary pressures in the economy. Retail headline inflation was more than 7 per cent for all the five months in 2022.
Private sector lender Yes Bank has introduced a new fixed deposit product which is linked to the repo rate. The bank will offer 6 per cent interest rate (repo rate + 1.10 per cent mark up) for deposits of one year to less than 18 months and 6.5 per cent (repo rate + 1.60 per cent) for 18 months to 3 years.
The policy repo rate is currently at 4.9 per cent and was increased by 90 bps by Reserve Bank of India since May 4.
“The rate of interest on this fixed deposit (FD) will be linked to the prevailing repo rate, allowing the customers of the bank to enjoy dynamic returns on their fixed deposits,” Yes Bank said
First Published: Jun 21 2022 | 5:42 PM IST