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South Indian Bank FD Interest Rates

South Indian Bank FD Rates 2020

Last Updated 21st Aug 2020

South Indian Bank is one of most reliable FD providers amongst a number of FD providers in the market. South Indian Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on South Indian Bank FD is 5.90%. Latest South Indian Bank FD interest rate for senior citizens, on the other hand ranges between 4.00% to 6.40%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 45 days 3.50% 4.00%
46 days to 90 days 4.00% 4.50%
91 days 5.20% 5.70%
92 days to 360 days 5.20% 5.70%
361 days to 17 months 29 days 5.70% 6.20%

South Indian Bank Fixed Deposit (FD)

South Indian Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of South Indian Bank FD are:

  • Deposit Amount: South Indian Bank FD can be opened with an amount as a low to up to .
  • FD Tenure: Ranges between 7 days to 18 months.
  • Interest Rate Range: 3.50% p.a. to 5.90% p.a.
  • Senior Citizens FD Rate: 4.00% to 6.40% p.a.
  • Highest Interest Rate: As per today’s rate, South Indian Bank’s highest interest rate on FD is 5.90% offered for a tenure of 18 months.
  • Safety of South Indian Bank Deposits: South Indian Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: South Indian Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes:

South Indian Bank Best FD Plan

We need to compare tenure wise latest FD rate of South Indian Bank to choose the tenure at which it provides the highest interest rate. South Indian Bank FD rates are best for the deposits with a tenure of 1 year 5 months 25 days to 1 year 5 months 25 days, wherein the current FD rate of interest is 5.90% p.a

If one is looking to invest in short term deposits with South Indian Bank, FD interest rates range from 3.50% p.a. to 5.20% p.a for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term South Indian Bank FD rates for senior citizens range from 4.00% to 5.70% p.a.

If one is looking to invest in long term deposits, South Indian Bank FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.70%. Senior citizens are offered special rates from bank with highest deposit rates of 6.20% p.a. on long term FDs.

Fixed Deposits of South Indian Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in South Indian Bank are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

FD in South Indian Bank – Premature Withdrawal

Premature closure of Term Deposit with South Indian Bank is along with the lower interest rate of 0.50% for deposits upto Rs. 15 lakh and 1% for deposits above Rs. 15 lakh than the contracted rate. The penal provisions for premature closure on South Indian Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit South Indian Bank

South Indian Bank offers loan up to 90% against its own deposit. Note that South Indian Bank will not give you loan against FD of any other bank. South Indian Bank offers Loan against FD at the rate of 4.5% to 6.9%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 for 2 years in South Indian Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws ₹ 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at South Indian Bank

To open a Fixed Deposit account in South Indian Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the South Indian Bank FD after reading the terms and conditions.

Nomination Facility on South Indian Bank FD

South Indian Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a South Indian Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

FAQs

What is the highest FD rate for South Indian Bank?

You can earn a maximum interest of 5.90% on South Indian Bank fixed deposit.

Are there any special rates for senior citizens FD of South Indian Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 3.50% to 5.90%. Compared to this, the rate of senior citizens FD are in the range of 4.00% to 6.40%.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in South Indian Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with South Indian Bank?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with South Indian Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

What is the current interest rate on FD in South Indian Bank?

Current interest for FD in South Indian Bank ranges between 3.50% - 5.90%.

Can a customer open a FD account online in South Indian Bank?

Yes, you can submit your application for opening a FD account on the website of South Indian Bank. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in South Indian Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.90%. For South Indian Bank FD the number of years in which your FD will get doubled is; 72/5.90 = 12


South Indian Bank News - Sep 2020
  • 2020-02-21 : South Indian Bank revised FD rates
    With effect from 21 February 2020, South Indian Bank revised its FD rates. The fixed deposit rate for 7 to 45 days is 4%, for 46 to 90 days it is 5.50% and it is 5.70% for 91 days. Fixed deposit rates for 92 to 180 days is 5.75%, for 181 days to less than 1 year is 6% and one year to less than 2 years is 6.40%. Further, the FD rate for two years is 6.55% and above two years to up to and including ten years is 6.40%.
  • 2019-11-26 : Revised Fixed Deposit rates by South Indian Bank
    South Indian Bank revised its FD rates with effect from November 22, 2019. The new rate for 7-45 days is 4.00%; for 46-90 days, the rate is 5.50%; the rate for 91 days is 5.90%; it is 6.00% for 92-180 days, and for 181 days to 11 months 29 days the rate is 6.35%. For large tenure of 1-2 years, the rate is 6.60%; the rate for two years is 6.90%, and for 2-10 years the new rate is 6.60%.
  • 2019-11-07 : South Indian Bank revises deposits rates for November
    South Indian Bank revised interest rates on fixed deposits. The new rates for 7-45 days are 4.00%, for 46-90 days the rate is 6.00%, the rate for 91 days is 6.10% for 92-180 days the rate is 6.50%, and for 181 days to less than a year, the rate is 6.35%. For a long period of 1 year to less than two years, the rate is 6.80%, the rate for two years is 7.05%, and for 2-10 years it is 6.80%. The rates have been in effect from November 1, 2019.
  • 2019-10-25 : South Indian Bank revised Fixed Deposits rates
    South Indian Bank revised its interest rates on fixed deposits from October 19, 2019. The rate for 7-45 days is 4.00%; for 46-90 days, the rate is 6.00%, for 91 days the rate is 6.30%, it is 6.50% for 92-180 days, and for 181 to 364 days the rate is 6.35%. The interest rates for 1-2 years is 7.00%, for two years it is 7.15%, and for 2-10 years the rate is 7.00%.
  • 2019-10-03 : Revised FD rates for South Indian Bank
    With effect from October 1, 2019, South Indian Bank has revised its rate on fixed deposits. The revised FD rate for a period of 7-45 days is 4.00%, for 46-90 days the rate is 6.00%, the interest rate for 91 days is 6.35%, the rate for 92-180 days is 6.50%, for 181 days to less than 1 year the revised interest rate is 6.35% and for 1 year the rate of interest is 6.90%. For longer tenures of more than one year to less than two years the rate is 7.05%, for two years it is 7.15%, and for two to ten years it is 7.00%.
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