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South Indian Bank FD Interest Rate

One of the earliest banks in South India, the South Indian Bank, came into being during the Swadeshi movement. In 1946, it became the first private-sector bank in Kerala to become a scheduled bank. Th...Read More

South Indian Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 days to 30 days2.9 %3.4 %
31 days to 90 days3.5 %4 %
91 days to 99 days4.5 %5 %
100 days6 %6.5 %
101 days to 180 days4.5 %5 %
181 days to less than 1 year5 %5.5 %
1 year6.6 %7.1 %
1 year 1 day7 %7.5 %
1 year 2 days to 499 days6.5 %7 %
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500 days (SIB 94 Plus)
7.4 %7.4 %
501 days to less than 30 months6.5 %7 %
30 months7 %7.25 %
Above 30 months to less than 5 years6.5 %7 %
5 years to less than 66 months6 %6.5 %
66 months (Green deposit)6.5 %7 %
Above 66 months to upto and including 10 years6 %6.5 %
Tax Gain ( 5 Years )6 %6.5 %

Types of South Indian Bank Fixed Deposits

SIB Flexi Smart Deposit

It is a fixed deposit that is linked to your CD Smart account.

  • Minimum investment: ₹50,000 and in multiples of ₹10,000
  • Maximum investment: ₹1 crore
  • Scheme tenure: 15 days to 10 years
  • Once the account balance goes below ₹25,000, the system will automatically break the deposit in multiples of ₹10,000 to bring the account balance to a minimum of ₹25,000. 
  • However, if the minimum deposit amount of ₹50,000 is not there, the balance amount will be closed and credited to the operative account.
  • Interest is paid out every quarter.
  • A nomination facility is available.
  • Premature closure is allowed with an applicable penalty.
  • No loan facility against the deposit
  • No auto-renewal. The deposit will be credited to the operative account on maturity.

SIB Flexi Deposit

This is a fixed deposit that is linked to your savings account.

  • The fixed deposit amount has to be in units of ₹1,000. 
  • This fixed deposit is broken automatically based on Last In, First Out (LIFO) criteria. The minimum units are transferred to the individual's savings bank account when its balances go into deficit.
  • The bank will pay out the interest every quarter.

SIB Tax Gain 2006

If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs in a given year under Section 80C of the Income Tax Act of 1961.

  • Minimum investment: ₹100 and after that in multiples of ₹100
  • Maximum investment: ₹1.5 lakh per annum
  • Scheme tenure: 5 years
  • Lock-in period: 5 years
  • Premature withdrawal of the deposits made under the scheme shall not be allowed before the completion of the lock-in period except in case of the depositor's death.
  • Though registration of the nominee is allowed, you cannot make a nomination in respect of a term deposit applied for and held by or on behalf of a minor.
  • The interest rate will be the rate of interest applicable for Fixed deposits with a maturity of 5 years. Additional rates for senior citizens will apply to this deposit also.

Fast Cash Term Deposit Scheme

This scheme helps depositors to invest in ultra short-term fixed deposits with auto-renewal facilities.

  • There are options for deposit tenures of 30, 46 or 91 days with cumulative or non-cumulative options.
  • This scheme allows partial withdrawal while the remaining balance continues to earn interest.
  • This FD scheme offers an auto-renewal facility.

FD Vantage

FD Vantage is a bundled term deposit product that earns you interest and secures your life with insurance coverage.

  • Minimum investment: ₹1 lakh
  • Maximum investment: Less than ₹2 crores
  • Scheme tenure: 1 year and above
  • FD Vantage is a normal fixed deposit product with insurance benefits. So, all the terms and conditions applicable to the existing deposit schemes will also apply to FD Vantage.
  • FD Vantage Alpha provides ₹2 lakh coverage on accidental death and permanent disability and ₹1 lakh coverage on partial disability.
  • For FD Vantage Alpha, the age should be between 18 and 70 years to get the insurance benefits. 
  • FD Vantage Beta provides ₹10 lakh accident and ₹1 lakh hospitalisation expense coverage. 
  • For FD Vantage Beta, the age for availing insurance is between 5 years to 80 years.
  • FD Vantage Gamma provides ₹2 lakh life insurance coverage.
  • For FD Vantage Gamma, the age for insurance is 18-50 years.
  • The interest rate on this term deposit will be in accordance with the FD tenures.
  • In the case of joint deposits, the scheme offers insurance coverage to only one among the joint holders.
  • An operative account (savings or current account) under the depositor’s name is compulsory for getting insurance benefits under this scheme.
  • The bank will bear only the first-year premium of ₹250.

Fixed Deposit Scheme

  • The South Indian Bank FD scheme offers simple interest and is paid quarterly.
  • You can also get a monthly interest payout at a discounted rate.
  • The deposit tenure ranges between 15 days and 10 years.
  • The auto-renewal facility is available.
  • You can withdraw the interest periodically or transfer it to other accounts.

Kalpakanidhi Term Deposit

  • It is a reinvestment plan where the interest is compounded quarterly.
  • The tenure of this fixed deposit scheme ranges between 6 months and 10 years.
  • There is a provision for an auto-renewal facility at maturity.

SIB Maximo

This is a non-callable deposit from South Indian Bank.

  • Minimum investment: Over ₹15 lakhs
  • Maximum investment: Less than ₹2 crores
  • This deposit is allowed for specified tenures only.
  • This deposit scheme is available in both cumulative and simple interest schemes.
  • For monthly deposits, the bank will calculate the interest rate quarterly, which is paid monthly at a discounted value.
  • This deposit cannot be closed prematurely except for certain exceptions like the death of the depositor, insolvency, court/statutory orders and similar instances.
  • The pre-closure penalty is 2%. On pre-closure, the applicable rate of interest minus 2% or contracted rate minus a 2% penalty, whichever is lower, will be applicable.
  • On closing prematurely before one year, no interest will be credited on NRE deposits according to the RBI directives. 
  • You can avail loan against this deposit.

Pros of investing in South Indian Bank Fixed Deposit

  • Period: The FD with South Indian Bank ranges from 7 days to 10 years.
  • Convenient: Open hassle-free FD using online banking in a few minutes
  • DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs. 
  • Minimum amount: Fixed deposits with South Indian Bank can be opened with an investment of as low as ₹100. 
  • Preference to senior citizens: Special rates for senior citizens, applicable only to residents individually or jointly with another resident citizen.
  • Nomination facility: Depositors can nominate beneficiaries for their investments in South Indian Bank FDs.
  • Insurance coverage: South Indian Bank’s FD Vantage offers various types of insurance coverage.

Cons of investing in South Indian Bank Fixed Deposit

  • Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation. 
  • Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.

South Indian Bank FD Eligibility Criteria

Individuals or entities satisfying the following criteria can apply for a fixed deposit at South Indian Bank:

  • Individuals who are residents of India
  • Non-Resident Indians (NRIs)
  • Hindu Undivided Family (HUF)

Documents Required for South Indian Bank FD Account

Here are the documents required to invest in a fixed deposit with South Indian Bank:

  • Duly filled-up fixed deposit application form
  • Two passport-size coloured photographs
  • Address proof: Voter ID card, PAN card, passport, ration card (anyone)
  • Identity proof: Aadhaar card, PAN card, voter ID card, passport or driving licence.
  • Proof of date of birth: PAN card, birth certificate, voter ID card, Aadhaar card or discharge certificate

How to Open an FD with South Indian Bank?

Here are the steps that you should follow to open an FD in South Indian Bank if you already have a savings bank or current account with the bank:

Step 1: Download the FD application form from the South Indian Bank's official website.

Step 2: Submit the duly filled application forms with your savings bank or current account number.

If you do not have a South Indian Bank savings bank or current account, here are the steps to follow to open a fixed deposit account with this bank:

Step 1: Download the FD application form.

Step 2: Fill in the form and sign the requisite details.

Step 3: Bring the filled-up form along with 2 passport-size photographs and the other required documents like a voter ID card, Aadhaar card, ration card and PAN card.

South Indian Bank Fixed Deposit Premature Withdrawal

  • A penalty will be applicable for premature withdrawal and reinvestment of Retail Rupee Term Deposits at 0.5% for a deposit below ₹15 lakhs and 1% for deposits of ₹15 lakhs and above.
  • The premature closure penalty is applicable for Retail Rupee Term Deposits (including NRE deposits) at a rate of 0.5%, for all tenures, for deposit amounts below ₹5 lakhs and 1% for deposit amounts of ₹5 lakhs and above.
  • The effective rate will be the applicable rate according to the amount and period an FD remained with the bank (less the penal rate) or the originally contracted rate (less penal rate), whichever is less.

Tax implications on South Indian Bank FD

According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.

In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:

  • Taxpayers can invest in FD either through public or private sector banks. 
  • Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
  • Bank's five-year tax saving FD offers exemptions under Section 80C. 
  • Investors cannot get loans against these FDs. 
  • In the case of joint holders, only the first holder can get tax benefits. 

How to claim tax benefits?

When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

Tax Deducted at Source (TDS)

  • TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year. 
  • For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.

FAQs

What are the special features available in Flexi Deposits?

There are several notable features of Flexi deposits. It is a fixed deposit linked to a savings bank account. This deposit is maintained in units of ₹1,000. The fixed deposit is broken automatically, and minimum units are transferred to the savings bank account when the balance goes below the threshold.

What privileges will senior citizens get on fixed deposit schemes in South Indian Bank?

Senior citizens are entitled to an additional interest of 0.5% on their fixed deposits.

Is the ₹5 lakhs DICGC insurance cover applicable on South Indian Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to South Indian Bank FD.

Is reverse sweeping permitted in Flexi Deposits?

No, at present, reverse sweeping is not permitted in flexi deposits.

When does South Indian Bank break the Flexi Smart Deposit?

When your current deposit account balance goes below ₹25,000, the bank will break your FDs in multiples of ₹10,000 to bring the deposit amount to ₹25,000. However, if the deposit amount in FDs is below ₹50,000, the deposit will be closed and credited to your current deposit account.

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South Indian Bank

Calculate South Indian Bank FD Returns

₹1,00,000
500 days (SIB 94 Plus)
7 days to 30 days31 days to 90 days91 days to 99 days100 days101 days to 180 days181 days to less than 1 year1 year1 year 1 day1 year 2 days to 499 days500 days (SIB 94 Plus)501 days to less than 30 months30 monthsAbove 30 months to less than 5 years5 years to less than 66 months66 months (Green deposit)Above 66 months to upto and including 10 yearsTax Gain ( 5 Years )
7.4 %
Yes
No
Maturity Amount₹1,10,137
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Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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