Overview of South Indian Bank
South Indian Bank Limited is a leading private sector bank in India, headquartered in Thrissur City in Kerala. The Bank provides financial services and banking products such as savings, loans, investment, insurance etc. South Indian Bank is spread across India through its efficient network of 850 branches, 9 service branches and 20 regional offices which are all located in around 26 states and 3 union territories. It has 1200 ATMs and 3 Cash Deposit Machines all over India. As a part of the Financial Inclusion front, the Bank has started 3 Ultra Small Branches and provides 57 KIOSKs in Kerala and Tamil Nadu in order to assist common people.
Recurring Deposit from South Indian Bank
In Recurring Deposit scheme, individuals can make a fixed monthly investment, instead of a one-time lump-sum investment. Upon maturity, the Bank pays the depositor the invested amount along with the accrued interest. Thus, you make equal periodic payments, and get it back with interest as a lump-sum at the time of maturity. A monthly instalment of Rs.100/- and above can be made for tenures ranging from a year, up to 10 years.
Recurring Deposit schemes offered by South Indian Bank
A Recurring Deposit Scheme is one of the most preferred investment schemes by the fixed monthly income earning individuals. Since Income tax on interest accrued is not deducted at source, except in NRO accounts, this is ideal for saving on taxes. The RD scheme from South Indian Bank comes with additional features such as an overdraft facility of up to 90% of the outstanding balance, facility to automatically remit instalment through internet banking or through Standing Instruction, etc. It also offers the depositors high return on investment, since the depositor gets the applicable rate of interest for the entire duration of the deposit, including the last monthly installment made.
Features of South Indian Bank Recurring Deposit
- Remittance is made out as monthly instalments.
- The remitted amount plus cumulative interest will be paid on the date of maturity.
- This scheme promotes regular savings.
- Monthly instalment period is fixed for a minimum of 12 months up to a maximum of 120 months
- Internet banking facility to remit instalment.
- Principal and Interest are fully repatriable.
- RD joint accounts are allowed.
- No TDS on interest.
- Tax benefits: Balance in the RD account is exempt from wealth tax and interest accrued is exempt from Income Tax.
Interest rates offered on South Indian Bank’s Recurring Deposit
SIB offers attractive interest rates for RD that ensures high yield for the depositors. The interest rates vary in accordance with the tenure for which the RD is opened as well as the principal amount. Interest rates on RD, offered by South Indian bank ranges between 7% and 8.75%. An additional 0.50% is paid out to senior citizens as interest, over and above the interest paid out to regular customers.
- How to open a Recurring Deposit account in South Indian Bank? RD can be opened with SIB directly through the bank’s branches.
- What is the Minimum & Maximum amount to open Recurring Deposit in South Indian Bank? Monthly instalment is fixed, starting from Rs.100. There is no maximum capping on the amount that can be deposited.
- What are the Minimum or Maximum period for RD in South Indian Bank? Fixed monthly instalments are to be made for a minimum period of 12 months up to a maximum period of 120 months.
- Is TDS (Tax Deductible at Source) applicable on Recurring Deposits? No, TDS is not applicable to interest accrued on principal.
- Does the RD account of South Indian Bank provide loan against the deposit? Yes, depositors can avail a loan up to 90% of the paid up value and the rate of interest for the loan amount will be 2% higher than that of the RD.
- Is nomination facility available for RD accounts in South Indian Bank? Yes, SIB offers nomination facility to RD account holders with the condition that nomination can be done in the name of a single person.
- Do Senior citizens get any extra benefit on Recurring Deposits? Senior citizens can enjoy special rates of interest. This is applicable only to resident citizens individually or jointly with another resident citizen. Any person aged 60 and above is entitled for an additional interest of 0.50% for all their term deposits.
- How is the penalty on premature closure of the Recurring Deposits calculated? Penalty is levied on the overall amount in the RD account if premature closure is made for withdrawal as well as for reinvestment of Recurring Deposits at the rate of 0.50% for deposit amounts below Rs.15 lakhs and 1% for deposit amounts of Rs.15 lakhs and above.
Know the Current Recurring Deposit Rates
- South Indian Bank RD Rates Comparison with Other Banks and Institutions
- South Indian Bank Recurring Deposit Interest Rates
Read More Articles On RD
- Flexi Recurring Deposit Schemes
- Which Bank Gives Highest Interest Rate On Recurring Deposit
- Recurring Deposit Interest Rates of All Banks
- Tax on Recurring Deposit Interest Rates