South Indian Bank Fixed Deposit

South Indian Bank offers higher fixed deposit interest rates than their savings account. Also, senior citizens get an additional 0.5% on their South Indian FD investments. This article covers South Indian Bank FDs and their interest rates in detail.

South Indian Bank Fixed Deposit Schemes

• SIB Flexi Smart Deposit
• Kalpakanidhi Term Deposit
• SIB Flexi Deposit
• SIB Tax Gain 2006
• Fast Cash Deposit
• Fixed Deposit
• FD Vantage
• SIB MAXIMO-Non Callable Deposits

1. SIB Flexi Smart Deposit

The Flexi Smart Deposit is linked to the CD smart account. When the CD balance falls below INR 25,000, the units are automatically transferred on the Last In First Out basis.

• Minimum Deposit Amount: INR 50,000 and in multiples of INR 10,000 thereafter
• Maximum Deposit Amount: INR 1 crore
• Interest Payout: Every quarter
• TDS: Applicable

2. Kalpakanidhi Term Deposit

Kalpakanidhi is interest reinvestment scheme. The interest gets compounded quarterly, and hence the returns are higher.

• Tenure: 6 months to 10 years
• Automatic Renewal: Available

3. SIB Flexi Deposit

The SIB Flexi Deposit scheme is linked to the depositor’s Savings bank account. When the SB balance falls in deficit, the units are automatically transferred on the Last In First Out basis. 

• Units: The Flexi deposit account is maintained in the units of INR 1,000.
• Interest Payout: Every quarter
• TDS: Applicable

4. SIB Tax Gain 2006

Investments up to INR 1,50,000 per annum are eligible for tax exemption under Section 80C of the Income Tax Act.

• Tenure: 5 years lock-in period
• Maximum Investment amount: INR 1,50,000
• Interest Rate: Similar to the FD rate with a maturity of five years.
• Transferability: Deposits can be transferred from one branch to the other, however not allowed between banks.

5. Fast Cash Deposit

Fast Cash deposit is an ultra-short fixed deposit that allows automatic renewals.

• Tenure: 30, 46 or 91 days with both cumulative and non-cumulative options.
• Partial withdrawals: Allowed, and the remaining balance will continue to earn interest.
• Interest rate: Similar to the FD rates applicable for the like duration.

6. Fixed Deposits

The SIB Fixed deposit account earns simple interest, and it is paid quarterly.

• Tenure: 15 days to 10 years
• Interest Payout: Depositors can opt for a monthly payout. However, these are available at a discounted rate. Furthermore, interest can be withdrawn periodically, or it can be transferred to other accounts.
• Auto-Renewal: Available
• TDS: Applicable

7. FD Vantage

The FD Vantage scheme is a term deposit plus an insurance scheme that provides coverage for life. Following are the three types of the scheme under the FD Vantage:

• FD Vantage Alpha
  • Minimum Deposit Amount: INR 1,00,000
  • Insurance Coverage: INR 2,00,000 for accident death and permanent disability. INR 1,00,000 for partial disability.
  • Age Limit: 18-70 years
• FD Vantage Beta
  • Minimum Deposit Amount: INR 3,00,000
  • Insurance Coverage: INR 10,00,000 for accident insurance coverage. INR 1,00,000 for hospitalization expenses.
  • Age Limit: 5-80 years
• FD Vantage Gamma
  • Minimum Deposit Amount: INR 5,00,000
  • Insurance Coverage: INR 2,00,000 for life insurance coverage.
  • Age Limit: 18-50 years

8. SIB MAXIMO-Non Callable Deposits

• Minimum investment- Rs.15,00,001
• Maximum investment- Rs 2 crore
• Investment period- 15 months
• Premature withdrawal allowed in the case of death of depositors, insolvency, etc. However, a penalty of 2% will be applicable over and above the applicable rate of interest.

Features of South Indian Bank Fixed Deposit

South Indian Bank FD account offers better returns than a savings bank account. Following are the key features of South Indian Bank fixed deposits:

Additional Payments

It is not possible to deposit any additional amount in an existing fixed deposit. However, one can always invest in a fresh South Indian Bank FD with an additional amount.

Tax and TDS

Investment in SIB Tax Gain 2006 qualifies for tax saving under Section 80C of the Income Tax Act, 1961. Other than this scheme, no other South Indian Bank FD qualifies for tax saving. Moreover, the interest that one earns on their South Indian Bank term deposit investments is taxable as per the depositor’s income tax slab rates. Furthermore, the South Indian Bank deducts a TDS of 10%. This is only in the case when interest income exceeds INR 40,0000 (INR 50,000 for senior citizens). Also, the TDS rate will be 20% if the PAN Card details aren’t submitted to South Indian Bank.

Moreover, to determine if the interest income from a South Indian Bank term deposit is above or below the TDS threshold limit, one can use the South Indian bank fixed deposit calculator available online. Also, one can estimate their tax liability using the Income Tax Calculator. Scripbox’s Income Tax Calculator is free to use.  It also helps in estimating tax liability from South Indian FD investment online.

Safety and Nomination Facility

Under the Deposit Insurance Scheme of RBI, DICGC insures all South Indian Bank FDs up to INR 5,00,000. Depositors can also nominate beneficiaries for their South Indian Bank FDs.

Premature withdrawals

This Bank allows premature withdrawal of term deposits. However, these withdrawals attract a penalty of 0.5% on the contracted interest rate for deposits below INR 15 lakhs. Also, if the deposits are above INR 15 lakhs, the penalty is 1%.

Auto-Renewal and Convenience

South Indian Bank offers an auto-renewal facility for deposits. Also, opening and managing South Indian Bank FD investments is easy and convenient through their online portal.

Pan Card

A PAN card is mandatory to open a South Indian Bank FD account. There are few implications for not disclosing PAN details to South Indian Bank. The applicable TDS rate for non-disclosure of PAN will be 20% instead of the usual 10%, as per the regulations of section 206AA. The South Indian Bank will not issue any TDS certificate. Furthermore, all the exemption certificates, like Form 15G and Form 15H, will be invalid.

A requirement of savings account

Individuals need not have South Indian Bank savings accounts to open a fixed deposit account. However, investors without a bank account in South Indian Bank would require an introduction letter from a bank employee.

South Indian Bank Fixed Deposit Requirement

Eligibility

To open a fixed deposit account in South Indian Bank, one has to be eligible. Following are the individuals that are eligible to invest in South Indian Bank FDs.

• Resident and nonresident individuals (including minors)
• HUFs

Documents required

To open a fixed deposit account in South Indian Bank, one needs the following documents.

• FD application form
• Introduction letter from a bank employee (if there is no savings account)
• Proof of identity (Passport, Voter ID, PAN Card, Aadhar Card, and Driving License)
• Residence proof (Aadhar Card, Passport, Bank Statement with Cheque)
• Proof of date of birth (Birth certificate, Voter ID, PAN Card, Aadhar Card, Service Discharge Certificate)

Does the South Indian Bank Offer Recurring Deposits?

Yes, South Indian Bank offers a recurring deposit scheme. The scheme accepts fixed monthly instalments instead of one-time lump sum investment. On maturity, the depositor gets interest plus the investment amount.

• Tenure: 1 year to 10 years
• Minimum Fixed Monthly Installments: INR 100
• Overdraft Facility: Available, up to 90% of the outstanding balance.

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