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 a better understanding.

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. August 11, 2025 Note: These rates are applicable as per the latest update and are valid for resident individuals only. NRE accounts/NRO accounts are excluded.

Key Features of South Indian Bank Senior Citizen FDs

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

• 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).
• 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.
• 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.
• 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.

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. You can open a South Indian Bank FD through the SIB Mirror+ app or the SIBerNet internet banking portal.

1. Access the Portal:

   You can initiate the process through the SIB Mirror+ mobile app or the bank's official internet banking website.

2. Navigate to FD Section:

   Go to the "Fixed Deposits" or "Deposits" section. If you are a new customer, you will use the SIB Quick FD option.

3. Enter Details:

   Fill in the required details, which include:

   • Investment Amount: The amount you wish to deposit
   • Tenure: The duration of the FD
   • Payout Option: Choose how you want to receive your interest

4. Verification and Funding:

   • For existing customers: The system will automatically link the FD to your existing savings or current account, and the funds will be debited from there.
   • For new customers: The SIB Quick FD process requires you to provide your Aadhaar and PAN details for quick, digital verification. You can then fund the FD directly from any other bank account using UPI or Net Banking.

5. Review and Submit:

   Review the details of your FD, including the interest rate and maturity value. For senior citizens, the system will apply the enhanced interest rate of up to 0.50% over the standard rate.

6. Confirmation:

   Once you submit the request, the FD will be booked instantly, and a confirmation will be provided. You can then manage and view your FD details digitally through the same app or portal.

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 are up to 7.10% which gives retired people a steady flow of money. 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.