Mumbai: Private sector lender Yes Bank has launched an online recurring deposits (RD) scheme which will enable customers to calculate their monthly installment to achieve financial goals.

Based on the systematic investment plan (SIP) model, using the bank's net banking services, this feature can calculate the monthly installment amount required to achieve the customer's financial goals, the bank said.

It will be done by computing targeted amount, time horizon, inflation, prevalent interest rates and recommending a tailor-made SIP, a bank release said.

This would encourage disciplined savings among customers, it said.

"The goal-based recurring deposits will encourage customers to commit themselves into disciplined savings," the bank's Senior President and Country Head, Savings Liabilities Management, Cards and Direct Banking, Chitra Pandeya said.

"Additionally, customers can give the RD a distinct name tag of their goal, such as 'Family Trip to Singapore' or 'Savings for Family Car' or 'Higher Education for kids' etc, creating an emotional value in the customer's mind," Pandeya added.

At present, Yes Bank provides 7 percent interest on savings accounts and 9.6 percent on NRE fixed deposits.

(Agencies)

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