The interest rate on fixed deposits under 2 crore rupees has increased at the private sector lender South Indian Bank. From September 20, 2022, the new rates are taken into effect, according to the bank’s official website. The bank raised interest rates on fixed deposits with maturities ranging from one year to ten years following the review. The bank presently offers interest rates for fixed deposits with maturities ranging from seven days to 10 years that fall between 2.65% and 6.00% for the general public and 3.15% to 6.50% for senior citizens.
FD Rates in South Indian Banks
The bank will continue to pay 2.65% interest on fixed deposits with maturities between 7 and 30 days, while South Indian Bank will continue to pay 3.25% interest on term deposits with maturities between 31 and 90 days. The interest rate on fixed deposits with maturities between 91 and 180 days will remain at 4.25%, while the interest rate on term deposits with maturities between 181 and less than a year will remain at 4.60%.
South Indian Bank increased its interest rate on fixed deposits maturing in a year to less than three years by 80 basis points, from 5.60% to 6.40%. The interest rate on fixed deposits with maturities between three and five years has increased from 5.75% to 5.90%, an increase of 15 basis points, while the interest rate on term deposits with maturities between five and ten years has increased from 5.85% to 6.00%, an increase of 15 bps. The interest rate for the “Tax Gain (5 Years)” tax-saving fixed deposit scheme offered by South Indian Bank has raised from its previous level of 5.85% to 6% by 15 basis points.
On its website, South Indian Bank provides the following statement on early withdrawals from fixed deposits that are subject to different penalty charges: For deposits created or renewed up until May 31st 2022, a penalty is applied for early withdrawal of deposits, including recurring deposits, at a rate of 0.50% for deposits under Rs. 15 lakhs and 1% for deposits of Rs. 15 lakhs and beyond. The effective rate will be the lower of the net of the initial contracted rate (less penal rate) or the net of the applicable rate to the amount and duration for which the deposit stayed with the bank.
On its website, South Indian Bank provides the following statement on early withdrawals from fixed deposits that are subject to different penalty charges: “Penalty is applicable for premature withdrawal of deposits including 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 for deposits opened/renewed up to 31st May 2022. The effective rate will be the net of the applicable rate to the amount and period for which the deposit remained with the bank (less the penal rate) or the net of the originally contracted rate (less penal rate) whichever is less. Effective from 1st June 2022, the penalty for premature withdrawal of Retail Term Deposits (including NRE & Recurring Deposits) will be applicable at the rate of 0.50% for deposit amounts below Rs. 5 lakhs and 1% for deposit amounts of Rs. 5 lakhs and above. The new change in penalty is applicable for all term deposits opened or renewed w.e.f. 1st June 2022. The effective rate will be the net of applicable rate to the amount and period for which the deposit remained with the bank (less the penal rate) or the net of originally contracted rate (less penal rate) whichever is less.”
