South Indian Bank Fixed Deposit Rate
South Indian Bank Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) allows you to deposit money for a fixed period of time. The bank gives you an interest at a specified rate, in line with the interest rate slab for that amount and tenure. Money can be deposited in an FD account for a time period that usually ranges from 7 days to as long as 10 years. You can choose the tenure that is most suitable for you.
The interest is added to the principal amount and the bank pays the accumulated amount to the customer at the time of maturity. Banks also give you the option of periodic interest payouts – monthly, quarterly, half-yearly and annually.
While you are not generally allowed to withdraw from an FD account, banks offer liquidity options and flexible lock-in periods. Banks typically charge a penalty for prematurely breaking a deposit account.
Opening a fixed deposit is one of the simplest ways of earning interest if you have some idle money. FDs are a low-risk instrument of saving that yield a higher interest amount than a regular savings account. Fixed Deposits are considered to be safe investments and free from fluctuations and volatility when compared to, for instance, investing in the stock market. For this very reason, investing in an FD account has been the norm with the general populace in India. It gives an assured return, even though the returns may be relatively low, unlike many other avenues of investment.
If you have extra money that you wish to invest, opening a fixed deposit account is the simplest way to go, as it is quick and easy with minimal documentation.
Apart from banks, NBFCs and corporates too offer fixed deposits.
South Indian Bank Deposit Rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest, though a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. South Indian Bank Interest Rates typically range from 4% - 8% per annum.
South Indian Bank FD rates
Following is an overview of South Indian Bank Term Deposit Rates and South Indian Bank Short-Term Fixed Deposit Interest Rates.
South Indian Bank Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with South Indian Bank directly.)
Interest Rate on Single Deposit less than Rs.100.00 lacs
|Tenure||Interest Rate p.a.|
|7 days to 45 days||4.00%|
|46 days to 90 days||6.50%|
|91 days to less than 1 year||7.00%|
|1 year to less than 15 months||7.50%|
|Above 15 months to less than 3 years||7.50%|
|Above 3 years up to and incl.10 years||7.25%|
South Indian Bank FD Interest Rates for Senior Citizens
South Indian Bank offers special Senior Citizen FD Rates which are generally marginally higher than the rates applicable for a regular FD. It provides seniors with that extra buffer for their retirement years. As of now, the South Indian Bank Senior Citizen FD rate of interest is 0.50% higher than a regular FD.
|Tenure||Senior Citizen Rate|
|7 days to 45 days||4.50%|
|46 days to 90 days||7.00%|
|91 days to less than 1 year||7.50%|
|1 year to less than 15 months||8.00%|
|Above 15 months to less than 3 years||8.00%|
|Above 3 years up to and incl.10 years||7.75%|
How to Calculate South Indian Bank Fixed Deposit Interest
You can calculate the maturity amount and the interest earned online using an online FD calculator. Online FD calculators are generally easy to use and come in handy to determine how much you want to invest. While using an online FD calculator, all you need to do is to enter the following details:
- The principal amount,
- The tenure of the deposit account and
- The interest rate.
The calculator does the hard mathematical computations and presents you with a breakup of the interest payable.
You can use the online calculator as many times as you want, using various combinations. This will help you arrive at your final deposit amount and help decide how much you want to invest and for what period. It eliminates the hassles and potential errors of manual calculation. There are many online websites that have easy-to-use FD calculators that allow you to instantly calculate the interest earned. Alternatively, you can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate South Indian Bank FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
South Indian Bank FD Premature Withdrawal Penalty
While investing in an FD account, take into consideration various potential situations where you might be in urgent need of money. Once you deposit an amount into the FD, you cannot withdraw from it, unlike with a savings account.
Withdrawing from an FD is possible, as banks have certain policies which helps make it liquid in times of need. But this comes at a cost as you might lose out on the interest pay out depending on the maturity period left.
South Indian Bank typically charges a nominal penalty for premature withdrawal which is communicated to you at the time of application of FD Deposit.
South Indian Bank FD – FAQS
What is simple interest payout?
Simple interest will be paid quarterly. Monthly interest payout scheme is also available at a discounted rate. Interest can be withdrawn periodically or transferred to other accounts as per instructions.
For how long can I book an FD with South Indian Bank?
Deposits can be made for period that ranges from 15 days to 10 years.
Is tax deducted for FD deposits?
Yes, if the interest earned reaches a particular slab in the financial year, then TDS is deducted.
Who is eligible to deposit under the Fixed Deposit Scheme?
An individual—individually or jointly—or a Hindu Undivided Family (HUF) having a Permanent Account Number (PAN) can make deposit under the fixed deposit scheme. Also eligible to open an FD account are Minors, Associations, Clubs, Societies, Partnership Firms, Trusts, etc.