Latest South Indian Bank FD Interest Rate April 2023
The South Indian Bank FD rate varies between 2.65% and 7.55% depending on the amount deposited, the age of the depositor, the tenure chosen and the type of fixed deposit. Deposits may be opened for as low as ₹1,000 and made for a period ranging from 7 days to 10 years.
South Indian Bank also offers different types of fixed deposit schemes like Kalpakanidhi, SIB Flexi Smart Deposit, and other NRI FD and no callable schemes. In this blog we will look at South Indian Bank FD rates for 2023 and other useful information around South Indian Bank deposit schemes.
South Indian Bank FD Interest Rates 2023 Highlights
| Interest Rate Range | 2.65% – 7.55% p.a. |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹1000 |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | 7 days (5 years for Tax Saver FD) |
How to Calculate South Indian Bank FD Interest Rate (Maturity Amount)?
Investors can easily calculate the expected maturity amount that they are owed based on the bank’s fixed deposit interest rate. There are two ways of going about it. You can use the simple interest method or the compound interest method.
1. South Indian Bank FD Interest Rate – Simple Interest Calculation
The formula for simple interest calculation is as follows:
Simple Interest = (P * R * T)/100
where
- P = Principal amount invested
- R = Rate of interest (%)
- T = Tenure
Let’s say you plan to invest ₹100,000 for a tenure of 10 years at 6% p.a. interest rate. In this case, P = ₹100,000, R = 6% and T = Tenure.
- Step 1: Simple Interest = (100,000 * 6 * 10) /100 = ₹60,000
- Step 2: Principal Amount + Simple Interest = ₹1,00,000 + ₹60,000
So, at the time of your fixed deposit’s maturity, you will get ₹160,000.
2. South Indian Bank FD Interest Rate – Compound Interest Calculation
Now, let us observe the compound interest method of calculating interest, where you earn interest on your interest. The power of compounding lies in the fact that you earn interest on an investment and then the interest you earn is added to the principal amount, and the total amount then earns interest again in the next period. This cycle continues, and over time, the interest earned can become significant.
For compound interest calculation, the formula applicable is:
A = P (1+r/n) ^ (n * t),
where
- A = Maturity Amount
- P = Principal amount invested
- r = Rate of Interest (in decimals)
- n = number of compounding in a year
- t = number of years
Let’s say you have invested ₹1,00,000 for 2 years at an interest rate of 6% per annum, compounded quarterly
In this case, P = ₹100,000
Interest Rate = 6%
The number of compounding in a year is 4, i.e. 1 every quarter
The number of years of investment is 2 years
A = 1,00,000 (1+0.06/4) ^ (4*2)
Your maturity amount is ₹11,264.93
For faster and error-free calculations, you can use the Navi FD calculator. Just enter the investment amount, tenure, and rate of interest, and the calculator would show the total returns in a few seconds!
Calculate South Indian Bank Fixed Deposit Interest Rate
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Factors that affect South Indian Bank Fixed Deposit Rate
There are four main factors that can impact South Indian Bank fixed deposit rates.
1. Tenure
Banks generally tend to incentivise longer-term fixed deposits. This means that the duration of your investment strongly affects the interest that any bank will extend to you.
2. Capital Threshold
Typically, investors receive a higher rate of interest on higher sums of capital invested in fixed deposits (beyond ₹2 crore, termed as bulk deposits).
3. Investor’s Age
The vast majority of banks offer an incremental rate of interest to senior citizens.. South Indian Bank also offers an additional interest rate of 0.5% for senior citizens (60 years and above) investing in many of the fixed deposit offerings from the bank.
4. Economic Conditions
Banks are impacted by the repo rates declared by the RBI bank based on the assessment of economic growth. When the RBI increases repo rates, banks may also increase the rates of interest offered on fixed deposits.
South Indian Bank FD Interest Rate for General Public
Interest rates of South Indian Bank term deposits differ depending on the tenure of the investment and the amount invested. For South Indian Bank fixed deposits below ₹2 crore, investors can earn an interest ranging from 2.65% to 7.40% depending on the investment tenure chosen. Deposits above ₹2 crore are referred to as bulk deposits and typically enjoy a higher rate of interest. One may earn up to 7.55% interest from making bulk deposits with South Indian Bank.
The below table represents South Indian Bank FD interest rates in 2023.
| Tenure | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 7 days to 14 days | 2.65% | 6.25% |
| 15 to 30 days | 6.05% | |
| 31 days to 60 days | 3.25% | 6.10% |
| 61 to 90 days | 6.15% | |
| 91 days to 99 days | 4.25% | 6.25% |
| 100 days | 6.00% | 6.25% |
| 101 days to 180 days | 4.50% | 6.25% |
| 181 days to 270 days | 5.00% | 6.50% |
| 271 to 364 days | 7.30% | |
| 1 year | 6.60% | 7.30% |
| 1 year 1 day | 7.00% | 7.00% |
| 1 year 2 days to 499 days | 6.50% | NA |
| 366 days to 389 days | NA | 7.00% |
| 390 days | NA | 7% |
| 500 days (SIB 94 Plus) | 7.40% | NA |
| 501 days to less than 30 months | 6.50% | NA |
| 391 days to 2 years | NA | 7.55% |
| 30 months | 7.00% | NA |
| Above 2 years to less than 3 years | NA | 6.00% |
| Above 30 months to less than 5 years | 6.50% | NA |
| Above 3 years to less than 5 years | NA | 5.60% |
| 5 years to less than 66 months | 6.00% | 5.80% |
| 66 months (Green deposit) | 6.50% | |
| Above 66 months to up to and including 10 years | 6.00% | |
| 5 years (Tax Gain) | 6 | NA |
Also Read
South Indian Bank FD Interest Rate for Senior Citizens
South Indian Bank offers a preferential rate of interest to senior citizens aged 60 years and above. This can go up to 0.50% incremental interest as compared to the rate slabs offered to the general public.
Do note that South Indian Bank offers no special senior citizen interest rates on bulk deposits (deposits above ₹2 crore). The below table represents South Indian Bank FD interest rates in 2023.
| Tenure | Interest rate |
| 7 days to 30 days | 3.15% |
| 31 days to 90 days | 3.75% |
| 91 days to 99 days | 4.75% |
| 100 days | 6.50% |
| 101 days to 180 days | 5.00% |
| 181 days to less than 1 year | 5.50% |
| 1 year | 7.10% |
| 1 year 1 day | 7.50% |
| 1 year 2 days to 499 days | 7.00% |
| 500 days (SIB 94 Plus) | 7.40% |
| 501 days to less than 30 months | 7.00% |
| 30 months | 7.25% |
| Above 30 months to less than 5 years | 7.00% |
| 5 years to less than 66 months | 6.50% |
| 66 months (Green deposit) | 7.00% |
| Above 66 months to up to and including 10 years | 6.50% |
| 5 years (Tax Gain) | 6.50% |
South Indian Bank FD Interest Rate for Non-Resident Indians (NRIs)
NRIs can access several accounts and term deposit options at South Indian Bank to earn interest on their capital. The different types of South Indian Bank NRI FD accounts are:
- NRE Fixed Deposit
- RFC Deposit (Resident Foreign Currency Deposit)
- FCNR Deposit (Foreign Currency Non-Resident Deposit)
1. South Indian Bank NRE FD Rates
NRE stands for Non-Resident External, which refers to a bank account that allows NRIs to invest their overseas earnings in India.
South Indian Bank offers up to 7.40% interest on their NRE deposits. No additional interest is extended to senior citizens opening NRE FD with South Indian Bank.
1. The Table below Displays South Indian Bank NRE FD Rates of Interest
| Tenure | Interest rate on deposits less than ₹2 crore |
| 1 year | 6.60% |
| 1 year 1 day | 7.00% |
| 1 year 2 days to 499 days | 6.50% |
| 500 days (SIB 94 Plus) | 7.40% |
| 501 days to less than 30 Months | 6.50% |
| 30 Months | 7.00% |
| Above 30 months to less than 5 years | 6.50% |
| 5 years to less than 66 months | 6.00% |
| 66 months (Green deposit) | 6.50% |
| Above 66 months to up to and including 10 years | 6.00% |
2. For Fixed Deposits above ₹2 crore in NRE FD account, South Indian Bank has Interest Rates as Below:
| Tenure | ₹ 2 Cr to less than ₹ 5 Cr | ₹5 Cr to less than ₹10 Cr | ₹10 Cr to less than ₹25 Cr | ₹25 Cr to less than ₹50 Cr | ₹50 Cr to less than ₹100 cr | ₹100 Cr to less than ₹200 cr | ₹200 Cr and above |
| 366 Days to 389 Days | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| 390 Days | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| Above 390 Days to up to 2 Years | 7.55% | 7.55% | 7.55% | 7.55% | 7.55% | 7.55% | 7.55% |
| Above 2 Years to less than 3 Years | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% |
| 3 Years | 6.00% | 6.00% | 6.50% | 6.60% | 6.65% | 6.65% | 6.65% |
| Above 3 Years to less than 5 Years | 5.60% | 5.60% | 5.60% | 5.60% | 5.60% | 5.60% | 5.60% |
| 5 Years | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% |
| Above 5 Years to 10 Years | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% | 5.80% |
2. South Indian Bank RFC Interest Rate
South Indian Bank RFC (Resident Foreign Currency) deposit account allows resident Indians who have returned from abroad to maintain their foreign currency earnings in India. The account can be opened in various foreign currencies – US Dollars, British Pounds, Euros, Australian Dollars, Swiss Franc and Japanese Yen. The minimum deposit tenure is 1 year, and the maximum is 3 years. The account is fully repatriable.
The table below displays South Indian Bank RFC FD interest rates.
| Maturity period/Currency | USD | GBP | EUR | AUD | CHF | JPY | ||
| Amount | Up to ₹2.50L | ₹2.50L to less than ₹10L | ₹10L & above | |||||
| 1 Year to less than 2 Years | 0.0525 | 0.054 | 0.055 | 0.04 | 0.01 | 0.035 | 0.0005 | 0.002 |
| 2 Year to less than 3 Years | 0.0465 | 0.0465 | 0.0465 | 0.0375 | 0.01 | 0.035 | 0 | 0.002 |
| 3 Years | 0.0375 | 0.0375 | 0.0375 | 0.0245 | 0.01 | 0.03 | 0 | 0.0005 |
3. South Indian Bank FCNR Interest Rates
FCNR stands for Foreign Currency Non-Resident. FCNR deposits allow NRIs to invest their foreign earnings in Indian currency.
With your South Indian Bank FCNR account, you can deposit earnings from overseas in a foreign currency and the amount is converted into Indian rupees at the prevailing exchange rate. Foreign currencies that South Indian Bank actively deals with include US dollars, Canadian Dollars, Australian Dollars, Pound and Euro, Swiss Franc and Yen. Account holders may choose from tenures ranging from 1 year to 5 years.
| Currency | USD | GBP | EUR | AUD | CHF | JPY | CAD | ||
| Amount | Up to ₹ 250,000 | ₹250,000 to ₹1,000,0000 | Above ₹1,000,000 | ||||||
| Tenure | Interest rate | ||||||||
| 1 Year to less than 2 Years | 0.0525 | 0.054 | 0.055 | 0.04 | 0.01 | 0.035 | 0.0005 | 0.002 | 0.035 |
| 2 Year to less than 3 Years | 0.0465 | 0.0465 | 0.0465 | 0.0375 | 0.01 | 0.035 | 0 | 0.002 | 0.035 |
| 3 Year to less than 4 Years | 0.0375 | 0.0375 | 0.0375 | 0.0245 | 0.01 | 0.03 | 0 | 0.0005 | 0.0315 |
| 4 Year to less than 5 Years | 0.03 | 0.03 | 0.03 | 0.0245 | 0.01 | 0.032 | NA | 0.0005 | 0.032 |
| 5 Years | 0.03 | 0.03 | 0.03 | 0.0245 | 0.01 | 0.0345 | NA | 0.0005 | 0.0325 |
South Indian Bank VS Other Banks’ FD Interest Rate
As a benchmark for comparison, we have taken fixed deposits of value below ₹2 crore, and have included any senior citizen preferential rates the bank may provide for the said tenures.
| Bank Name | Tenure | Interest Rate |
| SBI Fixed Deposit | 7 days to 10 years | 3% to 7.50% |
| HDFC Fixed Deposit | 7 days to 10 years | 3% to 7.75% |
| Central Bank of India Fixed Deposit | 7 days to10 years | 4% to 6.75% |
| Citibank Fixed Deposit | 7 days to 10 years | 3.50% to 8.01% |
| Punjab National Bank Fixed Deposit | 7 days to10 years | 3.50% to 7.25% |
| HSBC Fixed Deposit | 7 days to 2 years | 2.85% to 7% |
| IDBI Bank Fixed Deposit | 0 days to 20 years | 3% to 6.75% |
| ICICI Fixed Deposit | 7 days to 10 years | 3% to 7.60% |
| Deutsche Bank Fixed Deposit | 7 days to 5 years | 3% to 7.75% |
| Yes Bank Fixed Deposit | 7 days to10 years | 3.25% to 7.50% |
| Axis Bank Fixed Deposit | 7 days to 10 years | 3% to 7.26% |
| Sundaram Finance Fixed Deposit | 12 months to 36 months | 7.45% to 8.25% |
| Federal Bank Fixed Deposit | 7 days to 6 years | 3% to 7.25% |
| Canara Bank Fixed Deposit | 7 days to 10 years | 4% to 7.25% |
| Paytm Payments Bank Fixed Deposit | 7 days to 1 year | 2.75% to 5.5% |
| IndusInd Fixed Deposit | 7 days to 5 years and above | 3.50% to 8.25% |
| Indian Overseas Bank Fixed Deposit | 7 days to 10 years | 4.30% to 7.75% |
| Bank of Baroda Fixed Deposit | 7 days to 10 years | 3% to 7.55% |
| Bank of India Fixed Deposit | 7 days to 10 years | 3% to 7.80% |
| Punjab and Sind Bank Fixed Deposit | 7 days to10 years | 2.80% to 7.60% |
| RBL Bank Fixed Deposit | 7 days to 20 years | 3.50% to 7.80% |
| Union Bank Fixed Deposit | 7 days to 10 years | 3% to 8.05% |
| DBS Bank Fixed Deposit | 7 days to 5 years and above | 2.5% to 8% |
| Kotak Bank Fixed Deposit | 7 days to 10 years | 2.75% to 7.70% |
| IDFC Bank Fixed Deposit | 7 days to 10 years | 3.50% to 8.25% |
| Yes Bank Fixed Deposit | 7 days to 10 years | 3.25% to 8.25% |
| Post office Fixed Deposit/Time Deposit | 1 year to 5 years | 6.6% to 7% |
| Bandhan Bank Fixed Deposit | 7 days to 10 years | 3.75% to 8.50% |
Features and Benefits of South Indian Bank Fixed Deposit
Here are some of the features and benefits of SIB FD:
- Minimum period of deposit is 7 days
- Maximum tenure is 10 years
- Minimum deposit required is ₹1000
- There’s no upper limit for maximum deposit
- Interest on South Indian Bank fixed deposits is payable to the depositor quarterly from the date of issue
- Monthly interest payout is also available (but at a lower rate of interest)
- TDS is applicable as per IT Rules
- Auto-renewal facility is available
Different Types of South Indian Bank FD Schemes
South Indian Bank offers several types of fixed deposit schemes targeted at different types of investors – regular investors, senior citizen investors, NRI investors, and others. The types of FD schemes offered by the bank are:
- Term Deposit
- NRE Term Deposit
- Non-callable Deposit (SIB Maximo)
- Non-callable Deposit
- FCNR(B) Deposit
- RFC Deposit (RFC account)
- SIB 94 Plus
- Green Deposits
1. SIB Term Deposit
- Minimum Deposit: ₹1000
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 2.65% to 7.50%
- Eligibility Criteria: Indian residents
2. NRE Term Deposit
- Minimum Deposit: ₹100
- Maximum Deposit: No Upper Limit
- Tenure: 7 days to 10 years
- Interest Rate: 6% to 7.55%
- Eligibility Criteria: NRI status, but necessarily a person of Indian origin or resident who has attained NRI status under FEMA
3. Non-Callable Deposit – SIB Maximo
- Minimum Deposit: ₹15 lakh
- Maximum Deposit: ₹2 crore
- Tenure: 15 months
- Interest Rate: 6.60% to 7.10%
- Eligibility Criteria: Indian residents and NRIs
4. Non-callable Deposit
- Minimum Deposit: ₹15 lakh
- Maximum Deposit: ₹2 crore
- Tenure: 2 years
- Interest Rate: 7.50%
- Eligibility Criteria: Indian residents and NRIs
5. FCNR(B) Deposit
- Minimum Deposit: NA
- Maximum Deposit: NA
- Tenure: 1 year to 5 years
- Interest Rate: 0.00% to 5.50%
- Eligibility Criteria: NRIs or Overseas Corporate Bodies (OCB)
6. RFC Deposit
- Minimum Deposit: NA
- Maximum Deposit: NA
- Tenure: 1 year to 3 years
- Interest Rate: 0% to 5.50%
- Eligibility Criteria: Residents who have lived overseas for more than one year
7. SIB 94 Plus Deposit
- Minimum Deposit: NA
- Maximum Deposit: ₹2 crore
- Tenure: 500 days
- Interest Rate: 7.40%
- Eligibility Criteria: Indian residents, including senior citizens
8. Green Deposits
- Minimum Deposit: NA
- Maximum Deposit: ₹2 crore
- Tenure: 66 months
- Interest Rate: 6.50% to 7%
- Eligibility Criteria: Indian residents, including senior citizens
Also Read
How to Invest in SIB Fixed Deposit?
Follow the steps below to open a South Indian Bank fixed deposit:
1. Case 1
If you already have a savings or current account with South Indian Bank
Step 1: Download the application/KYC form from the South Indian Bank forms page
Step 2: Filled application forms with savings/current account numbers mentioned in the column for introduction is required.
2. Case 2
If you do not have a savings or current account with South Indian Bank
Step 1: Download the application/KYC form from the South Indian Bank forms page
Step 2: Fill in the details and sign the form. Visit the bank with the filled form and required documents (see the next section).
Documents Required to Open South Indian Bank FD
To open a South Indian Bank FD account, you may need the following documents:
- Identity and Address Proof: Passport, Aadhaar card, PAN card, Ration card bank statement with a cheque, or voter ID
- Paperwork: Duly completed application form
- Photographs: 2 passport size
Eligibility to Open South Indian Bank FD
To open a fixed deposit in South Indian Bank investors need to meet the following eligibility criteria:
- Indian resident holding a single account in South Indian Bank
- Two Indian residents holding account ownership jointly
- Hindu Undivided Families (HUFs)
- Minors with parents/guardians’ consent or solely
- Firms and companies
- Local bodies and any government department
- Overseas Corporate Bodies
- NRIs
South Indian Bank Fixed Deposit: Premature Withdrawal
South Indian Bank allows premature withdrawal of all eligible FD products after levying a charge of 0.5% for deposits amounting to less than ₹5 lakh, and 1% for deposits above ₹5 lakh. This applies to all FD tenors across retail rupee term deposits (including NRE and recurring deposits) opened or renewed after June 1, 2022.
The effective rate will be the net of applicable rate to the amount and period for which the deposit remained with the bank (less the penal rate) or the net of original contracted rate (less penal rate) whichever is less.
Taxation on South Indian Bank Fixed Deposit Scheme
All interest earned from fixed deposit interest is considered as “income from other sources” and is subject to taxation as per the individual’s income tax slab.
Banks are required, by law, to deduct TDS every year on the interest earned on FDs if the interest amount exceeds ₹ 40,000 per financial year (or ₹50,000 in the case of senior citizens).
If an individual withdraws their FD prior to the completion of their tenure or before the maturity date, the interest earned on such premature withdrawal is also subject to taxation as per their income tax slab.
Note
Depositors need to submit form 15G/15H to apply for any exemption from tax deduction as per I-T Rules. Additionally, tax-saving fixed deposits (that have a tenure of 5 years) can be tax-free up to ₹1.5 lakh under Section 80C of the Income Tax Act.
Final Word
FDs can be a safe and convenient way to grow your wealth and reach both long term and short term goals. South Indian Bank FD rates are some of the most competitive interest rates by a bank in India right now. As a senior citizen, you can also access higher interest rates. That said, remember to go through the fineprint before signing on to any new investment product or scheme.
FAQs
The minimum deposit required to open a South Indian Bank fixed deposit account is ₹1000.
Assuming you are a resident Indian, you access an interest rate of 6.60%. This means that if you have invested ₹10,000 for one year, your maturity value, or the amount you receive as you redeem your fixed deposit, would be ₹10,677.
Your tax relief under Section 80C of the Income Tax Act is limited to ₹ 1.5 lakh. Interest earned on the remaining ₹1 lakh will be taxable as per your income tax slab.
Yes, you can choose from NRE, RFC, and FCNR fixed deposits depending on what your finer requirements are.
NRE and FCNR fixed deposits allow NRIs to deposit their foreign earnings, which are then converted into Indian rupees on which the FD-holder can earn interest.
RFC deposit allows resident Indians who have returned from abroad to maintain their foreign currency earnings in India, and earn interest.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
