South Indian Bank Revises FD Rates: Know How Much Senior Citizens Can Gain

The Reserve Bank of India (RBI) has left the repo rate unchanged at 6.50 per cent for the last quarter of FY2023-24, with inflation at 5.1 per cent meeting its tolerance level, but commercial banks have kept revising their rates. The South Indian Bank revised its FD rates on February 20. After the rate revision, the private sector lender offers a maximum of 7.9 per cent to senior citizens, which is 0.50 per cent or 50 basis points higher than the general public, on it 400-day FDs. For the general public, the interest rate for the same period is 7.40 per cent.  Also Read: Pradhan Mantri Shram Yogi Maandhan Yojana: Who Are Eligible For This Pension?

Interest Rates and Tenures

The bank provides 6.50 per cent for 100-day FDs, 5.00 per cent for 101-day to 180-day FDs, and 5.50 per cent for 181 days to less than a year FDs. Further, for one-year FDs, the rate is 7.20 per cent, for 1 year 1 day, it is 7.50 per cent, and for 1 year 2 days to 399 days, it is 7.0 per cent. It offers the highest rate of 7.90 per cent on 400-day FDs, 7.0 per cent for 401 days to less than 30-month FDs, 7.50 per cent for 30 month, and 7.20 per cent for above 30 months to less than 5-year FDs. It reduced the rate to 6.50 per cent for FDs of more than five years to up to 10 years, except for 66-month FDs or Green Deposit at 7.0 per cent. Senior citizens will get an additional 0.50 per cent on all FD tenures.  Also Read: Here’s Why KYC Updation Is Important And How Seniors Can Use Video-Based KYC

Penalty for Pre-Mature Withdrawals:

The bank charges a 0.50 per cent penalty on pre-mature withdrawals for deposits of less than Rs 5 lakh and 1.0 per cent for a deposit of Rs 5 lakh and above. The premature withdrawal penalty applies on all tenures. After applying the penalty, the effective rate will be either the rate applicable for the amount or the period FD remains with the bank, or net of the original contract rate net of the penalty, whichever is less.