Syndicate Bank can be called one of India’s oldest and largest commercial banks with over 3000 branches spread across the country. The bank was nationalised on 19 July 1969 along with 13 other commercial banks in India. The bank even maintains an international presence with branches in London, Doha and Muscat.
At the time of establishment the bank was not called Syndicate Bank but Canara Industrial and Banking Syndicate Limited. The name changed to Syndicate Bank Limited in 1964 after 20 other banks merged with it over the preceding years. Today, it maintains its headquarters in Manipal, Karnataka. It opened its very first branch in 1925 in Udupi and, by 1937, had been made a member of the clearing house in Mumbai. The bank was the sponsor for Prathama Bank which happens to be the first regional rural bank in India.
The bank is also listed on the NSE under the name of SYNDIBANK. Among its many services, the bank offers its customers the opportunity to open fixed deposits with them for both short and long periods of time and also offers them attractive interest rates among other facilities.
Fixed deposits from Syndicate Bank provide regular interest to depositors on savings for short, medium or long-terms. With compounding and payout options these schemes let investors maintain funds based on their liquidity requirements. Being fixed income instruments these accounts require minimal monitoring to track growth. FDs offer safety and principal protection. Syndicate Bank’s FDs are easily accessible and cater to the needs of a wide range of investors.
The eligibility to open an FD account with Syndicate Bank may change according to the scheme chosen but generally all individuals who are residents of India can open FD accounts. NRI’s too can avail this facility.
Syndicate bank offers various schemes to suit its customers. These range from high returns schemes to tax savings schemes. Some of these schemes are:
Under the Synd Disha III Deposit scheme, investors can invest a minimum of ₹ 1000 and a maximum of ₹ 10 Cr. The duration of this scheme is fixed at 444 days and offers up to 9.15% interest. Even NRE’s and NRO’s can invest in this scheme. This scheme also offers loans up to 75% of the deposited amount and offers senior citizens and staff special interest rates.
This is a regular fixed deposit and can be made for durations ranging from 15 days to 10 years. The minimum amount that can be invested in such a scheme is ₹ 1000 and offers depositors nomination facilities too. The depositors can even take loans against these deposits in amounts equal to 95% of the deposited amount. Premature withdrawal is allowed in this scheme though depositors may be penalised for it.
As the name suggests, this scheme is created to give the depositors some tax benefits under section 80C. The minimum deposit for such a scheme is ₹ 100 and the maximum is ₹ 1,50,000 in a year. The minimum tenure for this deposit is 5 years and no premature withdrawals are permitted. The interest earned can be paid at the time of maturity or every quarter, at a discounted rate. No loans can be taken against such deposits and the interest earned can be taxed under applicable rules.
This is a scheme that has been created to provide higher returns to depositors and is good for those who are planning some big expenses in the future. Under this scheme depositors may deposit a minimum of ₹ 1000. Any subsequent investments have to be made in multiples of ₹ 100. This scheme comes with tenures ranging from 6 months to 10 years. Depositors can also take loans of up to 95% against this fixed deposit and even make premature withdrawals.
This is a scheme developed for investors who want returns on their deposits but at the same time want the facility to be able to withdraw cash at their convenience. The minimum deposit for such an account is ₹ 1000 and any subsequent payments need to be made in multiples of ₹ 1000. These deposits can be held for a minimum of 15 days and a maximum of 120 months (10 years). Partial withdrawals can be made at any time without having to pay a penalty.
This is a fixed deposit scheme that has been created keeping in mind those who desire a regular income. Under this scheme, investors can deposit a minimum of ₹ 1000 for a period of 1 year to 10 years. They also have the option to take the interest at quarterly intervals or at the end of each month at a discounted rate. They can also take loans of up to 95% of the deposited amount.
This scheme has been designed especially for senior citizens who, under this scheme, can deposit a minimum of ₹ 1000 for periods ranging from 1 year to 10 years. The interest can be claimed every month at discounted rates or at the end of every quarter. The interest rates for this deposit are 0.5% higher since it is meant for senior citizens but if the FD is closed prematurely then the extra interest will not be paid.
This is a scheme that dates back to the genesis of this bank. Under this scheme you can make minimum deposits of ₹ 5 and pay these deposits every day, week or month. What’s more amazing is that you don’t even have to go to the bank. The bank will send someone to collect it from you. The tenure for this deposit is 63 months. There are no penalties if you can’t pay the deposits and you can take loans of up to 75% against the deposited amount. Under this scheme interest earned will not be taxed.
This scheme is similar to the Pigmy 1928 scheme except in this scheme if your deposit amount has exceeded ₹ 5000 at the end of 12 months, then the excess amount can be converted into a regular term deposit. If the amount under this scheme is not converted to a term deposit then the interest earned is not taxed. Here too you can deposit a minimum of ₹ 5 but the duration of the scheme is 72 months. The interest rates range from 2% to 5% if the deposit is held for more than 24 months.
This account is for the high net worth individuals and carries with it a minimum deposit of ₹ 500 lakhs. The duration for which such a deposit can be held for is 7 to 180 days. Partial withdrawals are permitted under this scheme and attract no penalties. There are also no restrictions regarding the frequency and number of withdrawals. Depositors can take loans against these deposits but the loan will be of up to 75% of the amount remaining in the deposit.
These amounts will vary according to the schemes you opt for but the absolute minimum you can invest is ₹ 5. For most schemes the minimum amount is ₹ 1000 whereas for the Pigmy 1928 and Pigmy Plus 2007 schemes it’s ₹ 5. In case of the tax savings deposit scheme the minimum is ₹ 100.
There is no limit on the maximum amount that you can invest in a fixed deposit with Syndicate Bank. The will accept amounts in excess of ₹ 5 Cr but that is at the banks discretion.
The minimum and maximum periods that funds can be held for with the bank will depend on the scheme that you opt for. In general the minimum period for a Syndicate Bank fixed deposit is 15 days and the maximum 10 years.
To open an FD you will first need to download and fill up the fixed deposit form. You can get this form from the BankBazaar website. You can also check what maturity amounts you will get if use the BankBazaar FD calculator. Once that is done, you can approach any of the branches of the bank with the relevant supporting documents like ID and address proof to open the FD.
The interest rates offered by Syndicate bank for fixed deposits held with them vary from scheme to scheme and also with the tenure of the FD. The minimum interest rate offered is 6% for deposits held from 7 to 14 days and 8.5% for deposits held for 1 year. Apart from this, they also offer an extra 0.5% interest for senior citizens and 1% for employees and eligible ex-employees of Syndicate Bank.
Yes, Syndicate Bank does offer a tax saver fixed deposit scheme. It is called the SyndTaxShield Deposit and can be held for a minimum of 5 years. The minimum investment for this scheme is ₹ 100 and the maximum is ₹ 1,50,000 per year. Payments made towards this scheme can be submitted for tax benefits under section 80C.
Interest earned on FD’s held with Syndicate Bank are taxable. The tax to be paid is calculated according to the relevant tax rules. If a person does not have any taxable income and has submitted forms 15 G and 15 H then they may be exempted from paying tax at source.
If the FD account is held under the Pigmy 1928 Deposit schemes then the interest earned will not be taxed. However under the Pigmy Plus 2007 Deposit scheme the interest earned is not taxable as long as the account is not converted to a regular term deposit.
The feature of term deposits with Syndicate Bank vary with the scheme you select but some of the main features are:
Yes, loans can be taken against fixed deposits. The amount of the loan will vary from one scheme to the next but some schemes will allow depositors to take loans of up to 95% of the amount deposited.
Yes, senior citizens are eligible to get an extra interest rate of 0.5% over the applicable interest rates. However, if the deposit is made under the Senior Citizens' Security Deposit scheme then this 0.5% is not paid if the depositor goes in for a premature withdrawal.
Yes, Syndicate Bank will allow for premature withdrawals of fixed deposits held with them however, doing so may attract a penalty. The penalty is usually a discounted interest rate, the amount of which is determined by the amount that has been deposited.
For deposits in excess of Rs. 5 crores the penalty for premature withdrawals will be a reduction of the applicable interest rate by 2% and the interest will be paid only for the time for which the deposit was held with the bank. For other deposits the penalty may be an interest rate which is 1% less than the applicable interest rates.
The same rules are applied when premature withdrawals are sought for NRE deposits.
Yes, NRIs can invest in fixed deposits through NRE deposits and FCNR deposits. The difference between the two being that NRE deposits are held in Indian Rupees and the FCNR deposits are maintained in foreign currencies.
With FCNR deposits, you can open deposits in USD, GBP, CAD, AUD and Euro for periods ranging from 1 year to 5 years and the interest that you earn will depend on the currency and the duration of the deposits.
NRE deposits, on the other hand, can be opened for periods ranging from 1 year to 10 years and will earn you an interest rate between 7% per annum and 8.5% per annum.