South Indian Bank Senior Citizen FD Rates 2025

What Is a South Indian Bank Senior Citizen FD?

South Indian Bank Senior Citizen FD is a term deposit offered to individuals aged 60 and above. Interest is paid quarterly as simple interest, while a monthly payout option is also available at a discounted rate. Senior citizens can make these payments using the SIB Mirror+ app, Internet Banking, or by visiting the nearest branch.

You can compare the South Indian Bank FD rates for general and senior citizens for better understanding. Let's review the South Indian Bank FD rates for senior citizens, important features, and how to open a senior citizen FD account.

Key Features of South Indian Bank Senior Citizen FDs

South Indian Bank offers senior citizens several features. Some of them include:

1. Higher FD Interest Rates for Senior Citizens: 

   Senior depositors receive higher than regular FD interest rates. This bonus rate (0.50%) also applies to individual or jointly held accounts (with another resident). 

2. Nomination and Auto-Renewal Facilities: 

   The bank allows depositors to assign a beneficiary to the account. Auto-renewal instructions can be added to ensure continuity after maturity without manual intervention.

3. Loan Facility Against FD: 

   South Indian Bank provides loans of up to 90% of the FD amount. This enables senior depositors to access funds in emergencies without liquidating their deposits prematurely. The interest rate on such loans is typically 1%–2% above the FD rate.

4. Premature Withdrawal and Penalty: 

   Early withdrawals are permitted, but a penalty ranging from 0.50% to 1% is levied based on the deposit tenure and amount. The effective interest is recalculated for the actual holding period before penalty application.

South Indian Bank FD Interest Rates for Senior Citizens 

The following are the latest South Indian Bank FD rates for senior citizens, applicable to single domestic deposits under ₹3 crores:

South Indian Bank FD Rates for Senior Citizens (Below ₹3 Crores)

*South Indian Bank senior citizen FD rates w.e.f. June 10, 2025

Note: These rates are applicable as per the latest update and are valid for resident individuals only. NRE accounts/NRO accounts are excluded.

How to Open a South Indian Bank Senior Citizen FD

South Indian Bank offers both offline and online options for senior citizens to open a fixed deposit. Depending on whether you're an existing customer or a new one, you can follow the steps below:

1. Online Method

   Using the SIB Mirror+ App

   • Download and install the SIB Mirror+ app on your smartphone.
   • Log in using your Internet Banking credentials.
   • Navigate to the “Fixed Deposit” section.
   • Enter the investment amount, tenure, and payout option as your preference.
   • Follow the on-screen instructions to complete the booking.
   • Once completed, you can track your FD details anytime through the app.

   Using Internet Banking

   • Visit the official South Indian Bank Internet Banking portal and log in.
   • Go to the “Deposits” or “Fixed Deposits” section.
   • Select the option to open a new FD.
   • Fill in the required fields such as amount, tenure, and interest payout mode.
   • Submit the request to complete the process.
   • A confirmation will be generated, and the FD will be activated instantly.

   Note: You must have a South Indian Bank savings account to use this method.

   Using SIB Quick FD

   • Access the SIB Quick FD facility via the bank’s online portal or SIB Mirror+ app.
   • Provide basic verification details like Aadhaar and PAN.
   • Enter your preferred deposit amount (minimum ₹1,000) and tenure.
   • Complete the transaction, and your FD will be created.
   • FD details can be viewed and managed digitally without requiring an existing savings account.

2. Offline Method

   If You Have a Savings or Current Account with the Bank

   • Download the FD application form.
   • Mention your SB/CA account details in the form.
   • Submit the filled form to the nearest bank branch; no additional documentation is required.

   If You Are a New Customer

   • Download and fill out the FD form.
   • Submit the form with two passport-size photos and proof of address (e.g., PAN, Aadhaar, Voter ID).
   • You should provide a proper introduction at the branch.

Taxation on South Indian Bank Senior Citizen FD Interest

Interest income from South Indian Bank senior citizen FD rates is taxable under the Income Tax Act. TDS (Tax Deducted at Source) is applicable if the interest earned exceeds ₹1,00,000 in a financial year. However, eligible senior citizens can avoid TDS by submitting Form 15H.

Additionally, under Section 80TTB, a deduction of up to ₹50,000 can be claimed on interest income earned from fixed deposits and savings accounts. The Tax Saving FD scheme (with a 5-year lock-in) also qualifies for tax deduction under Section 80C (up to ₹1.5 lakh), though interest earned is taxable.

Key Takeaways

South Indian Bank senior citizen FD rates give retired people a steady flow of money. The interest rates can go as high as 7.20%, and the bank has many helpful services, such as auto-renewal, nominee, and online access. Senior citizens can open fixed deposits at their convenience, thanks to flexible tenures and multiple booking options. While premature withdrawals are permitted, depositors should take care of the applicable penalties. They can use this FD plan to save money for short- and long-term goals.