South Indian Bank RD Interest Rates

One of South India's oldest banks During the Swadeshi movement, the South Indian Bank (SIB) was established. The South Indian Bank Limited was founded as a private limited company on 29 January 1929 in Thrissur and then changed to a public limited company on 11 August 1939.

SIB was founded in Thrissur by a group of enterprising men who came together to provide the people with a safe, efficient, and service-oriented repository of the community's savings and free the business community from general moneylenders on the other by providing need-based credit at reasonable interest rates. 

Along with that, the bank also offers its customers varied products and services. With these services and products, the bank also offers its customer's RD accounts and attractive interest rates.

South Indian Bank RD interest rates 2023

Here is the table of the South Indian Bank RD interest rates:

Tenure

South Indian Bank recurring deposit interest rates for general customers

South Indian Bank recurring deposit rates for senior citizens

7 days - 45 days

4.00%

4.50%

46 days - 90 days

5.50%

6.00%

91 days

5.90%

6.40%

92 days - 180 days

6.00%

6.50%

181 days - less than 1 year

6.35%

6.85%

1 year - less than 2 years

6.60%

7.10%

2 Years

6.90%

7.40%

Above 2 years - up to and including 10 years

6.60%

7.10%

Tax Gain (5 Years)

6.60%

7.10%

South Indian Bank RD Account

Recurring deposits instill a saving habit, providing you with a steady source of funds when you need them the most. Though fixed deposits provide similar benefits, you may not have a big amount of money to invest in fixed deposits, but recurring deposits allow you to invest as little as INR 500.

South Indian Bank allows you to start a recurring deposit account with them. The bank's interest rates on RDs are highly attractive. You can start an RD account with the bank for as little as Rs.100. The investment period could range from one year to ten years.

In addition to an excellent rate of return, the bank allows you to remit payments via internet banking or by setting up standing instructions. You could get a loan against your RD account deposit. It should be noted that the bank also permits NREs and NROs to open recurring deposits.

Characteristics of the South Indian Bank RD Account

The South Indian Bank recurring deposit account includes the following features:

  • The needed minimum deposit is 500.
  • The interest will be taxed.
  • Form 16A TDS certificate will be provided.
  • Interest rates are assigned to specified time periods. If the client decides to withdraw his money before the period expires, the applicable interest rate will be deducted.
  • Premature withdrawal may result in penalties.
  • Under certain conditions, an overdraft of up to 90% of the deposit amount is possible.
  • Simple deposit amount transfer by net banking, ECS, or direct debit from SB account.

Types of South Indian Bank RD Accounts

Based on the tenure, the RDs can be divided into three categories:

Short-Term: Short-term RDs are ones that are open for one or two years. South Indian Bank provides regular citizens with interest rates of up to 6.60% each annum for creating a short-term RD. Senior citizens are also eligible for an additional 0.50% interest rate, bringing the total interest rate to 7.10% p.a.

Mid-Term and Long-Term: Long-term RDs are those that are open for more than 2 years to 5 years, whereas medium-term RDs are those that are open for more than 2 years to 5 years. When it comes to medium-term RDs, the lender offers interest rates ranging from 6.60% p.a. to 6.90% p.a. Citizens over the age of 60 can earn interest rates ranging from 7.10% to 7.40% per annum by opening a medium-term RD with a South Indian bank. The bank offers 6.60% p.a. on long-term RDs to ordinary people and 7.10% to senior citizens.

Benefits of Investing in the RD Account of South Indian Bank

There are numerous benefits to opening a recurring deposit account. Some of these are as follows:

  • Recurring deposit accounts pay more interest than savings accounts.
  • You can acquire a loan or overdraft for up to 90% of your deposit.
  • The interest rate remains constant during the term, resulting in larger earnings.
  • You can start a recurring deposit account with as little as INR 500.
  • You can make regular little deposits into the account whenever you have spare cash.

FAQs

Q1. Can I use the Overdraft facility?

South Indian Bank allows you to borrow up to 90% of the amount you put in a recurring deposit account.

Q2. Is there a lock-in period for the recurring deposit?

Yes, the recurring deposit accounts have a one-month minimum lock-in term.

Q3. I'd like to cancel the recurring deposit account. However, it's just been a month. What are the fees?

For the first month after starting the account, you will be unable to withdraw your recurring deposit. If you decide to close the account at the conclusion of the first month, your deposits will be reimbursed, but no interest will be paid.

Q4. What is the shortest and longest deposit period?

South Indian Bank requires a 6-month minimum term for recurrent deposits. The maximum period is ten years.

Q5. How can I make an application for a recurring deposit?

You can start a recurring deposit account through net banking or by downloading the application form from the internet and sending it to the bank branch along with all relevant papers. The application form is also available at all of the bank's branch offices.

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