South Indian Bank Fixed Deposit Rates 2024

South Indian Bank Limited is a private sector bank based in Kerala, headquartered in Thrissur. It has 924 branches, 53 extension counters, 20 regional offices and four service branches throughout India.

South Indian Bank offers high Fixed Deposit (FD) interest rates for general customers and senior citizens. Senior citizens get an additional 0.5% on their FDs compared to general citizens. It offers many FD schemes ranging from seven days (short-term) to ten years (long-term). 

Features and benefits of South Indian FD

• All FD accounts have a nomination option.
• Interest up to Rs.40,000 per year for general residents and Rs.50,000 per year for senior citizens are exempted from Tax Deducted at Source (TDS) from 1 April 2019.
• Citizens can take loans on FDs up to 90% of the deposit amount. 
• Investments in the ‘SIB Tax Gain 2006’ scheme are tax-exempt under Section 80C of the Income Tax Act, 1961.
• There is an auto-renewal facility for deposits.

South Indian Bank FD Rate 

The term-wise South Indian Bank FD rates on domestic deposits are as follows:

South Indian Bank tax savings FD Rate

South Indian Bank FD interest rates for senior citizens

South Indian Bank FD interest rates on domestic term deposits for senior citizens are as follows:

Types of South Indian Bank FD Schemes

South Indian Bank offers several FD schemes, which are provided below:

SIB Flexi Smart Deposit

• This deposit scheme is linked to the Current Deposit (CD) smart account.
• The minimum deposit amount is Rs.50,000, and the maximum is Rs.1 crore.
• The FD is automatically broken when the CD account balance becomes less than Rs.25,000 on a last-in-first-out basis. The minimum amount will be transferred from FD to the CD account.
• A quarterly interest payout option is available under this deposit scheme.
• TDS is applicable to this scheme.

Kalpakanidhi

• This is a reinvestment plan, and the interest is compounded every quarter.
• The term of FDs ranges from six months to ten years.
• The quarterly interests compounded quarterly yield higher returns.
• There is a provision for automatic renewal upon maturity of the plan.

SIB Flexi Deposit

• This is a fixed deposit linked to the savings bank account.
• The fixed deposits are maintained in units of Rs.1000.
• The FDs are automatically broken on a last-in-first-out basis when the savings account balance falls below the minimum amount, and the minimum units will be transferred to the savings account. 
• The interest is paid quarterly, and TDS is applicable.

SIB Tax Gain 2006

• Under this scheme, an investment of up to Rs.1.5 lakhs deposited as fixed or under a compound interest scheme for 5 years is tax-exempt under Section 80C of the Income Tax, 1961.
• The minimum deposit is Rs.100, and the maximum is Rs.1.5 lakhs in multiples of Rs.100.
• A nomination facility is available. However, the nomination cannot be made for term deposits held on behalf of or by a minor.
• The deposits can be transferred to different branches but not to other banks.
• The deposits cannot be encashed before 5 years from the receipt date.
• The interest on deposits is taxed based on annual receipt or accrual, depending on the simple or compound interest scheme.
• The deposit cannot be pledged as security or to secure a loan.

Fast Cash Deposit

• This deposit scheme is an ultra-short FD with a deposit term of 30, 46 or 91 days with a non-cumulative or cumulative option.
• There is an auto-renewal facility for deposits.
• Partial withdrawal is permitted, and interest is paid on balance.

Fixed Deposit

• Simple interest will be paid quarterly, and TDS is applicable. 
• A monthly interest payout is available at a discounted rate.
• Deposits can be made for a period ranging from 15 days to ten years.
• Interests can be transferred to other accounts or withdrawn periodically as per instructions.
• There is an option for an auto-renewal facility.

FD Vantage

The FD Vantage scheme is a regular FD product with insurance benefits, providing life coverage. The following are the types of FD Vantage schemes:

• FD Vantage Alpha:
  • The minimum deposit is Rs.1,00,000.
  • Insurance coverage of Rs.2,00,000 for accident death and permanent disability, and Rs.1,00,000 for partial disability.
  • The age limit is between 18-70 years.
• FD Vantage Beta:
  • The minimum deposit is Rs.3,00,000.
  • Insurance coverage of Rs.10,00,000 for accident insurance coverage and Rs.1,00,000 for hospitalisation expenses.
  • The age limit is between 5-80 years.
• FD Vantage Gamma:
  • The minimum deposit is Rs.5,00,000.
  • A life insurance coverage of Rs.2,00,000.
  • The age limit is between 18-50 years.

SIB MAXIMO-Non Callable Deposits

• The minimum deposit is Rs.15,00,001, and the maximum is Rs.2 crore (allowed for specific tenures only).
• In the case of a monthly deposit scheme, the interest will be calculated for the quarter and paid monthly at a discounted value.
• The deposit cannot be closed prematurely except in a few exceptional situations, such as statutory/court attachments, death of the depositor, insolvency, etc.
• A pre-closure penalty of 2% is applicable.
• A loan facility is available as per the existing term deposit rules.
• TDS is applicable.

How to invest in South Indian Bank FD

Step 1: Download the application form for opening the bank account. 

Step 2: Fill out the application form.

Step 3: Visit the nearest South Indian Bank branch and submit the application form with passport-sized photographs and the required documents.

Step 4: The bank officials will verify the application form and open the savings bank or CD account.

Step 5: Get the FD scheme application form.

Step 6: Fill out the FD scheme application form and submit it to the bank branch.

Step 7: The bank officials will verify the application form and open the FD scheme.

Eligibility to invest in South Indian Bank FD

The following individuals are eligible to open a bank account and FD:

• Residents and non-resident individuals 
• Minors through legal guardians.
• Hindu Undivided Families (HUFs).

Documents required for investing in South Indian Bank FD

• FD application form.
• Introduction letter from a bank employee (when there is no savings account)
• Proof of identity (Voter ID, passport, PAN card, Aadhar card or driving license)
• Residence proof (Passport or Aadhar card)
• Proof of date of birth (Voter ID, birth certificate, Aadhaar card, PAN card or service discharge certificate)

South Indian Bank vs Other Banks FD Rates

Frequently Asked Questions

What is the minimum and maximum deposit period of a South Indian Bank fixed deposit account?

The minimum deposit period is seven days, and the maximum period of a South Indian Bank fixed deposit is ten years.

Can an account holder close the South Indian Bank FD account anytime?

Yes, an account holder can prematurely close the South Indian Bank FD except for a tax saver FD with a five-year lock-in period.

What is the mandatory document for proof of address to open an FD?

The mandatory document for proof of address is a passport or Aadhaar card.

Is there a loan facility on a South Indian Bank FD account?

Yes, customers can take a loan up to 90% of the deposit amount from a fixed deposit account at attractive interest rates.

What is the minimum balance for a South Indian Bank savings account? 

A customer may pay a minimum of Rs.10 to open a South Indian Bank savings account. However, they must maintain a minimum account balance of Rs.150.

What is the tax liability applicable on term deposits?

The deposits made in the ‘SIB Tax Gain 2006’ scheme for five years are tax-exempt up to Rs.1.5 lakh. However, the interest is taxable on an annual accrual or receipt basis. TDS is applicable on all term deposits.