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The private sector lender South Indian Bank has hiked its interest rates on fixed deposits of less than 2 Cr. According to the bank's official website, the new rates are in effect as of September 20, 2022. After the revision, the bank increased interest rates on fixed deposits with maturities ranging from one year to ten years. For fixed deposits with maturities ranging from seven days to ten years, the bank now offers an interest rate that ranges from 2.65% to 6.00% for the general public and 3.15% to 6.50% for senior citizens.

South Indian Bank FD Rates

The bank will continue to give an interest rate of 2.65% on fixed deposits maturing in 7 days to 30 days, while South Indian Bank will continue to offer an interest rate of 3.25% on term deposits maturing in 31 days to 90 days. Fixed deposits with maturities between 91 and 180 days will continue to pay 4.25% interest, while term deposits with maturities between 181 and less than a year will continue to pay 4.60% interest.

On fixed deposits maturing in 1 year to less than 3 years, South Indian Bank has hiked its interest rate by 80 bps from 5.60% to 6.40%. Fixed deposits maturing in 3 to 5 years will now provide an interest rate of 5.90%, up from the previous rate of 5.75%, up by 15 basis points, and term deposits maturing in 5 to 10 years will now offer an interest rate of 6.00%, up from the previous rate of 5.85%, up by 15 bps. The interest rate on South Indian Bank's tax-saving fixed deposit programme, "Tax Gain (5 Years)," has increased by 15 basis points to 6% from its previous level of 5.85%.

South Indian Bank FD Rates
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South Indian Bank FD Rates (southindianbank.com)

South Indian Bank has posted the following statement on its website regarding premature withdrawals of fixed deposits that are subject to various 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 upto 31st May 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 original contracted rate (less penal rate) whichever is less. Effective from 1st June 2022, 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 original contracted rate (less penal rate) whichever is less."

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