This private sector bank hikes interest rates on fixed deposits of 1 to 10 years


Private sector lender South Indian Bank has hiked its interest rates on term deposits by less than 2 cr. According to the bank’s official website, the new interest rates will apply from September 20, 2022. After the revision, the bank increased interest rates on fixed-term deposits with maturities from one year to ten years. For term deposits with maturities from seven days to ten years, the bank now offers an interest rate range of 2.65% to 6.00% for the general public and 3.15% to 6.50% for seniors.

South Indian Bank FD interest rates

The bank will continue to offer a 2.65% interest rate on 7 to 30 day term deposits while South Indian Bank will continue to offer a 3.25% interest rate on 31 to 90 day term deposits. Deposits with maturities between 91 and 180 days will continue to earn interest at 4.25%, while deposits with maturities between 181 and less than one year will continue to earn interest at 4.60%.

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For fixed deposits with a maturity of 1 to less than 3 years, the South Indian Bank raised its interest rate by 80 basis points from 5.60% to 6.40%. 3 to 5 year term deposits now offer an interest rate of 5.90%, up 15 basis points from the previous rate of 5.75%, and 5 to 10 year term deposits now offer an interest rate of 6 .00%, up 15 basis points from the previous rate of 5.85%. The interest rate on South Indian Bank’s Tax Gain (5 Years) fixed deposit program has risen 15 basis points to 6% from 5.85% previously.

South Indian Bank FD interest rates

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South Indian Bank FD interest rates (southindianbank.com)

South Indian Bank has posted the following statement on its website regarding early withdrawals of fixed deposits which incur various penalties: “Early withdrawals of deposits, including recurring deposits, will incur a penalty of 0.50% for deposit amounts below Rs. 15 lakhs and 1% on deposit amounts of Rs. 15 lakhs and above for deposits opened/renewed up to 31st May 2022. The effective interest rate is the net interest rate on the amount and period for which the deposit remained with the bank (less penalty interest) or the net interest rate (less penalty interest), whichever amount is lower. From 1 June 2022 there will be a penalty for early withdrawal of retail term deposits (including NRE and recurring deposits) of 0.50% for deposit amounts below Rs. 5 lakhs and 1% for deposit amounts of Rs. 5 lakhs and more. The new penalty change will apply to all term deposits opened or renewed from June 1, 2022. The effective interest rate is the net interest rate on the amount and period that the deposit remained with the bank (less penalty interest). minus the originally contracted rate (minus the penalty rate), whichever is lower.”

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