South Indian Bank FD Rates – Complete Guide & Latest Returns

Key Highlights
 

1. South Indian Bank offers FD rates as per the tenures. It offers short (7 days) to long (up to 10 years) tenures, with special slabs like the 66-month Green Deposit.
    
2. Senior citizens receive higher rates (about 0.50% extra on many tenures), and there are special schemes such as Tax Gain FD, Flexi deposits, and Kalpakanidhi.
    
3. It offers cumulative and non-cumulative options, sweep/auto-break for linked accounts, recurring deposits, bulk deposit slabs and clear premature withdrawal penalties.
    

South Indian Bank (SIB) offers fixed deposit (FD) interest rates for tenures ranging from 7 days up to 10 years. The interest varies on the basis of tenure, senior citizen and premarital withdrawal. It ranges from 2.9% to 6.3% for general depositors. For senior citizens, it ranges from 3.4% to 7.25%. SIB provides special FD schemes like “Tax Gain FD”, “Flexi Deposit”, “Kalpakanidhi Deposit”, “Fast Cash Deposit”, etc., each with features and restrictions.

South Indian Bank  FD Interest Rates 2025

South Indian Bank FD has revised its interest rate plans multiple times in 2025. For different types of deposits, the effective dates of execution of amendments were different. For example, for all savings accounts and NRE term deposits, it was 11th August, 2025, and for domestic term deposits, it was 6th October, 2025. 

In this section, we have discussed South Indian Bank FD interest rates for different tenures, amounts and ages of depositors.   

Latest FD interest rates (domestic deposits < ₹3,00,00,000)

As of 6th October 2025, interest rates for Domestic Term Deposits less than ₹3,00,00,000 are:
 

In 5 years, general depositors can save 5.70% in taxes. 

Senior citizen FD rates

Senior citizens (aged more than 60 years) typically get a 0.50% extra interest over the normal rates in most tenures. For example, for 7 days to 30 days, the general public gets 2.90%, whereas senior citizens get 3.40%. In the table below, we have listed the South Indian Bank FD interest rates for senior citizens. 
 

In some tenures, maximum senior citizen rates reach about 7.25% or more, depending on the scheme.

Term-wise South FD interest rates (7 days to 10 years)

South Indian Bank offers fixed deposits from very short durations (7–30 days) to almost 10 years. The interest rate changes as per the tenure. The table below gives the official data on it: 

The intermediate durations (3-9 months) rates are in the 4.8%-5.7% range for the general public. Very long durations (5 to 10 years) have relatively lower rates compared to the 1-3 year due to interest rate expectations. The “Green deposit” (66 months) is a special slab with a slightly better rate. 
 

Bulk deposit FD rates (> ₹3,00,00,000)

As per data published on the official portal of South Indian Bank FD, the interest rates for deposits of and above ₹3,00,00,000 are:
 

Interest rates for senior citizens are the same for deposits above ₹3,00,00,000. 

Do you know if you close your deposit prematurely, then you have to pay 1% penalty?

Types of South Indian Bank Fixed Deposit Schemes

South Indian Bank FD offers various term deposits. Each has its own features. In this section, we have discussed each of the term deposits: 

1. SIB Flexi Smart Deposit

The features are:

• Minimum deposit: ₹50,000; in multiples of ₹10,000 thereafter. 
• Maximum deposit: Less than ₹3 crore.
• Tenure: Minimum 7 days, up to 10 years.
• Linked to the CD Smart account (customer’s account). The FD is broken automatically (sweep in) when the balance in the CD Smart account goes below ₹25,000 in the linked account.
• The FD is broken in multiples of ₹10,000 (LIFO basis) to bring the CD account up to ₹25,000. 

Pre-closure penalty is applicable for this term deposit. Also, TDS remains the same. 

2. SIB Flexi Deposit (Flexi / Flexi Cumulative)

The features are:

• The scheme is maintained in units of ₹1,000 and linked to the customer’s savings bank account. 
• Sweep/break of FD: When the SB account balance needs funds, FD is automatically broken (Last-In-First-Out) to maintain SB liquidity.
• Interest is payable on maturity, which is why it is termed cumulative. 
• When part of the FD is broken (due to sweep), that portion is treated as a part-closure, and interest is calculated for the broken amount for its actual period using the applicable premature withdrawal rate.

Earlier, South Indian Bank FD had “Flexi Fixed Deposit”; however, it was replaced by “Flexi Cumulative” w.e.f 31 August 2025.

3. Fast Cash Term Deposit

Here are the features of Fast Cash Term Deposit:

• This is an ultra-short fixed deposit scheme. 
• It permits automatic renewal and partial withdrawal, with terms like 30, 46, and 91 days.
• It offers cumulative or non-cumulative options. 
• Partial withdrawal is allowed, while the remaining balance continues to earn interest.
• It supports automatic renewal, so the depositor ndoes ot need to visit the bank for renewal. 

Interest rates are applicable for regular term deposits of the “like duration.”

4. Recurring Deposit (RD)

If you can’t deposit a bulk amount at once, a recurring deposit is the best option for you. Here are the features:

• Minimum monthly instalment: ₹100 (in multiples of ₹1).
• Minimum tenure period: 6 months, then in multiples of 3 months, up to a maximum of 120 months (10 years).
• For NRE RDs, the minimum tenure is 12 months.
• Overdraft against RD is available up to 90% of the outstanding balance. 

You can make the remittance of the instalment via Internet Banking or by setting up Standing Instructions.

5. SIB MAX PLUS (Non-Callable Deposits)

Non-callable deposits are fixed deposits that generally cannot be withdrawn before the maturity date. They provide a higher interest rate than regular deposits. Under the SIV Max Plus scheme, depositors will get the following benefits:

• Applicable for deposit amounts of ₹1,00,00,001 (Rs 1,00,00,000 + 1) and up to less than ₹3,00,00,000, for specific tenures.
• The deposit is available under both Cumulative and Simple Interest options.
• For monthly deposit schemes, interest is calculated quarterly but paid monthly at a discounted rate.
• Senior citizens, staff, and retired staff will not receive any extra interest on Non-callable Term Deposits.
• Loans or overdraft facilities cannot be availed against Non-callable Term Deposits.
• TDS and all other features are the same as those for regular Term Deposits.

If you are someone who wants a higher interest rate with a fixed tenure and no premature withdrawal option, then go with this scheme.

6. Kalpakanidhi

The Kalpaknidhi scheme plan reinvests the deposit with interest compounded every quarter. The fixed deposit can be opened for any period between 6 months and 10 years. Your interest compounds quarterly, which makes the net return higher. Also, there is an option for automatic renewal upon maturity.

Features and Benefits of South Indian Bank FD

The features and benefits of South Indian Bank FD are:

1. Simple interest is paid once every quarter.
2. A monthly interest payout option is available, but at a reduced rate.
3. The scheme is suitable for both short-term and long-term investments.
4. Deposits can be made for any duration between 15 days and 10 years.
5. Interest can be withdrawn at regular intervals or transferred to another account as directed.
6. Customers may also opt for automatic renewal of their deposits.
7. Tax Deducted at Source (TDS) will be applied to the interest earned.

FDs are among the safest investment options. You can grow your money without risking a penny. 

Comparison of South FD Rates with Other Banks

We have compared South Indian Bank FD with Suryoday Small Finance Bank, HDFC Bank and State Bank of India
 

Eligibility Criteria & Required Documents for South Indian Bank  FD

To invest in South Indian Bank FD, you should meet the following eligibility criteria: 

• You should be above 18 years of age and an Indian resident. 
• UPI-enabled bank account
• Valid mobile number linked to Aadhaar
• Non-resident Indians (NRE/NRO deposit schemes) can also often open FDs under SIB’s NRE/NRO FD rules.
• Senior citizens must be aged 60 or above to gain benefits for higher interest rates. 
• Legal entities (HUFs, trusts) might also be eligible under certain terms (depending on the bank’s policy).
• Must comply with the bank’s KYC norms (identity, address, etc.).

If you face any queries or have doubts, you can always contact the South Indian Bank FD at 1800 425 1809 (Toll Free India) or 1800 102 9408 (Toll Free India)

 The documents that are needed to book a South Indian Bank FD are:

1. Application form (FD deposit form)
2. Identity proof: Passport, Aadhaar card, PAN card, Voter ID, Driving License, etc.
3. Address proof: Utility bills, bank statement, Aadhaar, passport, etc.
4. Age / Date of birth proof (especially for senior citizen FD): birth certificate, PAN, Aadhaar, etc.
5. Photographs (passport size)
6. PAN card (for tax / TDS purposes)
7. Existing bank account details (source of funds)
8. In case of non-residents, additional documents such as NRE/NRO account proofs or foreign remittance proofs may be required.
9. Nomination form (if you want to nominate a beneficiary).
   
    

These are standard across most banks, and SIB does not usually demand anything extra beyond standard KYC.

If you are verifying your KYC digitally (Video KYC), these are the required documents/souvenirs that you will need:

• Blank paper + blue/black pen
• Original PAN & Aadhaar cards
• Well-lit, quiet environment
• Camera-enabled device with a microphone

Make sure you have a stable internet connection while on the video call, as bad bad connection, bad light, or bad photo can lead to KYC rejection.

Tax implications on South Indian Bank FD 

FD interest is added to your income and taxed as per your income tax slab. The bank deducts TDS on FD interest when applicable under tax rules. If eligible, you can also submit Form 15G/15H to avoid TDS. 

South Indian Bank FD Premature Withdrawal & Closure Rules

The South Indian Bank FD states that a penalty is applicable for premature withdrawal and reinvestment of retail rupee term deposits, including recurring deposits. The penalty structure (as per that page) is:
  • 0.50% penalty for deposit amounts below ₹5,00,000 (for all tenors)
  • 1.00% penalty for deposit amounts ₹5,00,000 and above (for all tenors)
  This applies to term deposits opened or renewed from 1 June 2022 onward.

• For special FD types like “SIB QEnd,” the bank states that “premature closure penalty is applicable as with all other term deposits.”
• In  Flexi FDs, your savings account is linked to your fixed deposit. If your savings balance drops below the minimum, part of the FD breaks automatically. The broken amount is treated as a partial withdrawal. Interest is paid only for the time that portion stayed invested. The bank applies the premature closure rate on that withdrawn part. 

How to Invest in South Indian Bank FD?

Here’s a step-by-step guide you can include:

1. Check eligibility / KYC: Ensure you have a valid identity, address proof, PAN, and meet any age criteria.
2. Decide amount and tenure: Choose how much to deposit and for how long, based on your goals.
3. Select the FD scheme: Regular, Tax Gain FD, Flexi, Kalpakanidhi, etc.
4. Visit the branch or the online/digital channel:
   • If you already have an SIB account, you may apply via net banking or through the SIB portal (if available).
   • Alternatively, visit a branch and fill out the FD deposit form.
5. Submit documents: Provide identity, address proof, photographs, nomination, etc.
6. Make payment/deposit: The amount is transferred from your savings account or via cheque as per Bathe NkNk's policy.
7. Obtain FD receipt/certificate: The bank will issue an FD receipt (FDR) with maturity date, rate, etc.
8. Choose interest payout mode: Decide whether you want quarterly payments, cumulative, or transfer to your SB account.
9. On maturity: You can either get the proceeds, reinvest (renew), or instruct auto-renewal.
10. Monitoring: Keep track of maturity dates; sometimes banks auto-renew at the prevailing rate unless instructed otherwise.
     

You may also provide online instructions or a mobile app guide if SIB supports those channels.

Conclusion

South Indian Bank FDs provide flexible tenures, varied interest rates for regular and senior citizens. It also offers multiple schemes like Flexi and Tax Gain. It has something for everyone, for short-term and long-term safe savings goals, too.

Frequently Asked Questions

Who can open FD account with South Indian Bank?

You can open an FD account with SIB whether or not you already have an account with the bank.

Can you alter the tenure of an existing FD account?

Once you invest in an FD at South Indian Bank, you cannot change its tenure.

Will I be charged a penalty for withdrawing a fixed deposit prematurely at South Indian Bank?

Yes, South Indian Bank charges a penalty if you withdraw your fixed deposit before it matures.

Is PAN card mandatory for opening an FD at South Indian Bank?

Yes, you must have a PAN card to open an FD at South Indian Bank.