Yes Bank to offer overdraft facility against FDs

Private sector lender Yes Bank will offer overdraft facility on fixed deposits through it digital channels, through which customers avail overdraft of up to 90% of the fixed deposit value.

“Resident Individual customers with single holding savings account are eligible to avail this facility for an FD of a minimum value of ₹50,000 and maximum value of not less than ₹1 crore for a minimum tenure of 181 days,” Yes Bank said. The rate of interest will be 200 bps above the FD rate. For senior citizens, it will 1% above the FD rate.

“For the benefit of customers, there would be no EMIs and the repayment can be done in lump sum. Further, the Bank will not charge any processing fee and no additional documentation would be required,” Yes Bank said adding the overdraft limit will be sanctioned a day after the request is submitted.