South Indian Bank FD Interest Rates 2025

What is the South Indian Bank Fixed Deposit?

South Indian Bank Fixed Deposit offers a minimum deposit starting from ₹1,000, making it accessible for most investors. South Indian Bank FDs ensure security, trust, and competitive interest rates. Let's understand more about the South Indian Bank fixed deposits, including top benefits, the latest rates, and taxation on the FDs.

Key Features of South Indian Bank Fixed Deposit

You can enjoy several benefits when you open a South Indian Bank FD. A few of them are explained below:

• Different FD Options: South Indian Bank offers a range of FD types, such as Regular FD, Kalpakanidhi Term Deposit, SIB Flexi Smart Deposit, SIB Green Deposit, SIB Flexi Deposit, Fast Cash Deposit, FD Vantage, SIB Care Deposit, and Tax Saver FD under Section 80C, so you can select the one that best suits your needs.
• Tax-Saving Option: South Indian Bank also offers SIB Tax Gain Term Deposits, allowing you to claim tax deductions under Section 80C of the Income Tax Act. 
• Premature Withdrawal: You are allowed to withdraw your FD before maturity if required. A penalty of 0.50% is charged for deposit amounts less than ₹15 lakhs, and a 1% penal rate for deposits of ₹15 lakhs and more.
• Loan Facility: Instead of breaking your FD in an emergency, you can take out a loan. You can avail of loans against their FDs up to 90% of the deposit amount.
• SIB Flexi Deposit (Sweep-in): If your savings account balance goes above ₹25,000, the extra money is moved to an FD. You earn higher interest rates compared to savings accounts.
• Nomination Facility: You can nominate beneficiaries for your FD, ensuring a smooth transfer of funds in case of any eventuality. 

South Indian Bank FD Interest Rates

Here's a detailed breakdown of South Indian Bank FD Interest Rates across different investment slabs and tenors:

South Indian Bank FD Rates on Domestic/NRO deposits for less than ₹3 Crores:

*South Indian Bank FD interest rates w.e.f. May 28, 2025

South Indian Bank FD Interest Rates on above ₹1 Crore to less than ₹3 Crores (Non Callable):

*South Indian Bank FD interest rates w.e.f. May 28, 2025

South Indian Bank FD Rates for bulk deposits (₹3 Crores and above) (Callable):

*South Indian Bank FD interest rates w.e.f. May 27, 2025
*No additional interest will be paid to Senior Citizens for deposits of ₹3 Crores and above

South Indian Bank FD Interest Rates for bulk deposits (₹3 Crores and above) (Non-Callable):

*South Indian Bank FD interest rates w.e.f. May 27, 2025
*No additional interest will be paid to Senior Citizens for deposits of ₹3 Crores and above

How to Open a South Indian Bank FD?

Opening a South Indian Bank FD is a very easy process, and whether you do it online or offline depends on your convenience.

1. Online Method

   For Existing South Indian Bank Customers:

   • Download and fill out the Application Form: Access the application form from the official South Indian Bank website.
   • Provide Account Details: Mention your existing Savings Bank (SB) or Current Account (CA) number in the 'Introduction' column.
   • Submission: No additional documents are required. Submit the completed form through the bank's online portal or visit the nearest branch.

   For New Customers:

   • Download and fill out the Application Form: Obtain the application form from the South Indian Bank website.
   • Provide Personal Details: Fill in all necessary personal and contact information.
   • Introduction Requirement: A proper introduction is necessary. You may contact the nearest branch for assistance.
   • Document Submission: Along with the filled form, submit two passport-sized photographs and valid address proof documents such as a Passport, Ration Card, Voter ID, or PAN Card.
   • Value-Added Services: You may opt for additional services by filling out the respective forms.

2. Offline Method

   For Existing South Indian Bank Customers:

   • Visit Nearest Branch: Locate and visit the nearest South Indian Bank branch.
   • Obtain Application Form: Request the Fixed Deposit Account Opening Form.
   • Fill and Submit: Complete the form, mentioning your existing SB or CA account number in the 'Introduction' column. No additional documents are required.

   For New Customers:

   • Visit Nearest Branch: Find the closest South Indian Bank branch.
   • Obtain Application Form: Collect the Fixed Deposit Account Opening Form.
   • Fill and Submit: Complete the form with accurate personal and contact details.
   • Provide an Introduction: A proper introduction is necessary. Bank officials can guide you through this process.
   • Document Submission: Submit two passport-sized photographs along with valid address proof documents such as a Passport, Ration Card, Voter ID, or PAN Card.
   • Value-Added Services: You may opt for additional services by filling out the respective forms.

Documents Required for South Indian Bank FD

Here’s a quick checklist of documents you will need to open a South Indian Bank FD.

• Filled in Application Form
• Photograph of depositor/s (2 copies)
• Identity proof
• Address proof
• Proof of date of birth
• Officially Valid Documents as per KYC Norms (Valid KYC documents typically include a passport, driving license, PAN card, Voter ID, Aadhaar card, NREGA job card, or a letter issued by the National Population Register containing details of name and address)
• PAN Card or Form 60 or 61
• Any other related documents applicable to minors, partnership firms, companies, HUFs, etc.

Taxation on South Indian Bank FD Interest

Interest earned from Fixed Deposits with South Indian Bank is taxable under the head

“Income from other sources” as per your income tax slab. As per Section 194A of the Income Tax Act, the bank deducts Tax Deducted at Source (TDS) at 10% if the total interest earned in a financial year exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens.

To avoid higher TDS, you must submit your PAN card. Without PAN, TDS is deducted at 20%. You can claim the deducted TDS as a refund or adjust it while filing your income tax return. Tax-saving FDs offer additional benefits under Section 80C, helping reduce your taxable income.

Key Takeaways

South Indian Bank Fixed Deposits offer fixed returns over a selected tenure, with interest rates varying based on the duration and type of deposit. The bank provides a range of investment tenures along with features such as auto-sweep facilities. Investors can compare South Indian Bank FD rates with different banks to make an informed choice based on their needs. As a smart investor, you can always compare the best FD interest rates and choose wisely.