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South Indian Bank is one of the oldest banks of the country. The bank came into existence during the pre-independence Swadeshi period. The bank was established at Thrissur, by a few enthusiastic men who wanted to make banking convenient for the general public and easier for businessmen who had till then faced a tough time at the hands of local money lenders.
South Indian Bank is a fast-growing, innovative, customer-centric financial institution. It was the first private sector bank from Kerala to become a scheduled bank in the year 1946 under the RBI Act. Also, it was the first Kerala-based bank to have integrated all the branches and the subsequent data via core banking system.
Today, the bank is considered one of the most prompt and innovative bank of South India with great emphasis on technology and customer-relations. Recently, the bank was awarded the prestigious Banking Technology Excellence award for best IT team. The functions of the bank range from private banking to wealth management to investment banking. Personal banking products from the bank are quite popular among customers.
South Indian Bank offers retail banking services to its clients. As part of its retail savings solutions product suite, the bank offers different fixed deposit schemes. These schemes have been customised to suit the varied needs of investors looking to maximise returns on their savings in line with their investment and financial goals. Each scheme has unique features but all offer competitive interest rates and flexible tenures.
All individuals and HUFs are eligible to open a fixed deposit account with the South Indian Bank.
South Indian Bank offers a wide range of fixed deposits. You can choose a deposit that suits your preferences the best.
This is a reinvestment plan with interest that is compounded quarterly. The deposit period ranges between 6 months and 10 years. There is also an option of auto-renewal if the customer chooses to.
This fixed deposit scheme is linked directly to your savings account and has a fixed deposit amount requirement of ₹ 1000 and in subsequent multiples of the same. The interest is paid out quarterly. There is automatic part-closure available to account for deficit in savings account.
The SIB Flexi Smart scheme is similar to the SIB Flexi scheme. However, the minimum deposit amount required is ₹ 50,000 and the maximum amount is ₹ 1 Crore. This is a deposit scheme linked to a CD account. Automatic part-closure applies to this scheme when the sum in CD account falls below a certain value.
As the name signifies, this scheme from South Indian Bank is meant for customers who are looking to save tax through their fixed deposit. The maximum amount that can be deposited under this scheme is ₹ 1 lakh and the deposit period is 5 years. While the investment amount is eligible for tax exemptions the interest on this deposit is taxable like all other deposit schemes.
These deposits are very short-term fixed deposits held usually for around a few days or weeks and come with cumulative as well as a non-cumulative interest collection options. Partial withdrawals are allowed on these deposits.
These are standard fixed deposit schemes that are provided at competitive rates of interest and have a fixed maturity period. The interest earnings on these can be received cumulatively or singularly, as chosen by the customer.
The minimum amount required to open an FD with South Indian Bank is dependent on the type of deposit chosen. The minimum amount required to open a fixed deposit scheme is ₹ 1000.
There is no limit placed on the amount that can be held in fixed deposit accounts with South Indian Bank. However, in some cases a limit of ₹ 1 crore may be placed under some schemes while under certain other schemes approvals will be required if the deposit amount exceeds ₹ 1 crore, depending on bank guidelines.
South Indian Bank offers flexible deposit periods which range from a few days to several years. The shortest deposit period offered by the bank is 7 days while the longest is 10 years.
Fixed Deposit accounts with South Indian Bank can be opened directly by visiting any of the bank branches. A physical application form needs to be filled in and the required documents need to be furnished. The deposits are divided into two categories, one for those who have an existing account with the bank and those who do not have an existing savings account with the bank. For the latter, a proper introduction by one of the bank employees is required.
Different deposit tenures fetch different rates of interest. The lowest rate offered by South Indian Bank is on deposits which are for a short period of time. For example a 15-45 days deposit period fetches an interest rate of 4% whereas a 5 year period earns 8.75%. Also, special schemes earn special rates, like SIB Freedom scheme earns a rate of 9% per annum.
Fixed Deposits with a lock-in period of 5 years or more are eligible for income tax exemptions under section 80C of the Income Tax Act. The tax-saver scheme available by South Indian Bank is SIB Tax Gain 2006.
Yes. South Indian Bank Fixed Deposits, like deposits by all other banks, are taxable and are essentially split up into two major groups. First is those for which the deposit holder has furnished his/her PAN number and the other is for which the deposit holder has not furnished his/her PAN number. In case the interest on the FD is equal to or more than ₹ 10,000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 10,000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.
Some of the main features of South Indian Bank fixed deposits are listed here:
Yes. Loans of up to 90% of the fixed deposit amount can be granted to the customer. This loan is applicable to those who have a running fixed deposit account with South Indian Bank.
Yes. Special and higher rates which are around 0.50% higher than the regular rates are offered to senior citizens who hold a fixed deposit with South Indian Bank.
No. Currently, South Indian Bank does not offer credit cards against fixed deposits held with the bank.