The Mumbai-based private bank said on February 23 that Yes Bank had launched a floating-rate fixed deposit scheme for domestic customers with a tenor of one to three years.

The bank said in a press release that the interest rate on this fixed deposit would be linked to the repo rate, enabling customers to earn dynamic returns on their FDs.

In a floating fixed deposit, adjustments in interest rates will be made automatically without any manual intervention by the bank or the customer, Prashant Kumar, MD and CEO of Yes Bank, said in a press release.

The product offers customers the safety of fixed deposits and returns linked to the repo rate published by the Reserve Bank of India (RBI).

The repo rate is currently at 6.5%. Earlier, the bank raised standard fixed deposit rates to 6.5% annually for regular customers and 7.25% for seniors.