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South Indian Bank’s rate sheet effective 19 June 2026 lists general resident rates below ₹3 crore from 2.90% for 7–30 days to 6.80% for 30 months. Eligible resident senior citizens generally receive an additional 0.50 percentage points. Rates can change without notice, so check the dated table immediately before booking and retain the rate advice issued on the booking date.
For retail rupee term deposits opened or renewed from 26 March 2026, premature closure uses a 1% reduction in the applicable interest rate, subject to the bank’s calculation. It is not a 1% deduction from your principal. Domestic rupee and NRO deposits have a seven-day minimum tenor; NRE and FCNR(B) deposits have a one-year minimum. Eligible deposits at the bank are covered by DICGC insurance up to ₹5 lakh per depositor per bank, including principal and interest aggregated in the same right and capacity.
How to check the current South Indian Bank FD rate
The only reliable “today” rate is the bank’s own rate table carrying its effective date. South Indian Bank marks the published schedule effective 19 June 2026 and warns that rates are subject to change without notice. A rate seen on an older screenshot, search result or social-media post may not be available when you place the deposit.
- Open South Indian Bank’s official interest-rate page and verify the effective date printed above the table.
- Choose the product category that matches your money: domestic resident/NRO, NRE or FCNR(B).
- Choose the correct amount band. The quoted general range below applies to deposits below ₹3 crore; other bands and bulk-deposit rules can differ.
- Match the exact tenor. Do not substitute a nearby period: the schedule may list special tenors such as 372 days, 18 months, 30 months and 66 months.
- Check whether the deposit is callable or non-callable and whether you qualify for the senior-citizen column.
- Save the rate sheet, application and deposit advice issued on the booking date. Those records show the rate and terms that applied when the contract was made.
Check the table again if there is a delay between submitting an application and funding the FD. The effective date is part of the rate information, and the bank’s warning about changes without notice means an undated quotation should not be treated as a guaranteed offer.
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Rates established by the 19 June 2026 schedule
| Deposit detail | Rate information | Qualification |
|---|---|---|
| Domestic/resident deposits below ₹3 crore, 7–30 days | 2.90% for the general category | Rate shown on the schedule effective 19 June 2026; subject to change without notice |
| Domestic/resident deposits below ₹3 crore, 30 months | 6.80% for the general category | Rate shown on the same dated schedule; verify availability before booking |
| Eligible resident senior citizens | Generally 0.50 percentage points above the corresponding general rate | The bank says the benefit applies to residents holding the deposit individually or jointly with another resident citizen |
| Other tenors, products and amount bands | Use the exact row in the live table | No single rate can be inferred from the 2.90%–6.80% range |
The range is not a promise that every tenor falls between those two figures in a simple upward progression. A tenor, product type, amount band, payout option or special-rate condition can change the applicable figure. Read the row for the exact deposit you intend to open.
Special tenors deserve particular care. A 372-day or 66-month row is not interchangeable with a one-year or five-year row, even if the calendar difference seems small. Record the exact number of days or months shown on the advice so a later closure calculation uses the correct contract period.
How the senior-citizen column works
First identify whether the deposit is being booked by a resident senior citizen under the bank’s eligibility rules. The bank states that the special rate can apply when the resident senior citizen holds the deposit alone or jointly with another resident citizen. A joint account with a non-resident, an NRE or FCNR(B) product, or a different ownership arrangement may not receive the same treatment. Confirm the eligibility shown on the booking form rather than assuming that age alone changes every product’s rate.
Do not add the 0.50-point uplift yourself to a rate from a different product row. Select the senior-citizen column for the same tenor and amount band. If the table has a special-tenor or product-specific senior rate, that published row controls.
What the 1% premature-closure rule means
For retail rupee term deposits opened or renewed from 26 March 2026, South Indian Bank states a 1% penalty for all tenors and deposit amounts covered by that rule. The bank reduces the interest rate used for the early-closure calculation; it does not automatically remove 1% of the principal.
The effective rate is the lower of these two results:
- the rate applicable to the amount and period the money was actually held, minus 1 percentage point; or
- the original contracted rate, minus 1 percentage point.
Because the lower result is used, booking a high rate does not guarantee that closing early will preserve that rate. The bank also describes early closure as subject to its discretion. Charges are deducted from the interest portion, with the policy stating that the deduction is limited to the interest and not the principal.
“One percent” in this rule means one percentage point from the applicable interest rate. For example, a quoted rate of 6.00% would be tested as 5.00% before the bank applies the lower-rate comparison; it does not mean that ₹1,000 is removed from every ₹1 lakh of principal. The eventual rupee interest can still be lower because the bank uses the rate for the amount and period actually held and because the lower of the two candidate rates applies.
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Worked method without inventing a payout
Suppose you book a two-year FD and ask to close it after ten months. The bank must identify the rate for your amount band and the ten-month holding period (or the nearest applicable period in its schedule), compare that with your original contracted rate, subtract the 1-percentage-point penalty from each candidate rate, and use the lower net rate. The final rupee payout also depends on the principal, booking date, renewal history, amount band, interest-credit instructions and the bank’s day-count calculation. Therefore, a precise payout cannot be calculated from the tenor alone.
Ask the branch or digital channel for a written premature-closure quotation before authorising the break. Compare the quoted maturity value, interest already paid or credited, tax deductions if any, and the amount that will be returned to your linked account.
If interest was paid periodically, ask how the bank will reconcile amounts already credited when the FD is closed. The closure quote should make clear whether any adjustment is being made against interest, while the policy limit means the charge cannot be taken from principal as a penalty.
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Deposits opened under older rules
Do not apply the 1% rule automatically to every historical FD. South Indian Bank’s policy distinguishes deposits opened or renewed before 1 June 2022, deposits opened or renewed from 1 June 2022, and deposits opened or renewed from 26 March 2026 onward. The applicable policy is tied to the opening or renewal date and product terms. Check the advice and the policy version that governed that date; if the FD was renewed, use the renewal date for the renewed contract.
A deposit opened before 26 March 2026 does not become subject to the newer rule merely because you request closure now. Conversely, a renewal can create a new contract date. Keep both the original receipt and the latest renewal advice so the bank can identify which rule applies.
Minimum holding periods and deposits that cannot be broken
| Deposit type | Minimum tenor before an early withdrawal can earn interest | What happens before the minimum |
|---|---|---|
| Domestic rupee term deposit | Seven days | No interest is paid when withdrawn before the applicable minimum period |
| NRO term deposit | Seven days | No interest is paid when withdrawn before the applicable minimum period |
| NRE term deposit | One year | No interest is paid when withdrawn before the applicable minimum period |
| FCNR(B) term deposit | One year | No interest is paid when withdrawn before the applicable minimum period |
These minimums are separate from the 1% penalty. Reaching seven days on a domestic or NRO deposit, or one year on an NRE or FCNR(B) deposit, only clears the minimum-period barrier; the applicable early-closure calculation can still reduce the interest.
For instance, breaking a domestic FD on the sixth day is not simply a seven-day rate less 1%. The stated result is no interest when the withdrawal is before the applicable minimum. On an NRE or FCNR(B) deposit, the one-year threshold matters even if the contract’s original tenor is much longer.
Non-callable bulk deposits
South Indian Bank states that non-callable domestic bulk deposits of ₹3 crore and above have no premature-withdrawal facility. “Non-callable” is a contractual restriction, not merely a larger penalty. If access to the money before maturity matters, do not select that product without confirming the withdrawal terms in writing.
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Do not assume that splitting a large sum into several receipts creates a call option. Ask whether the product is classified as callable or non-callable and whether the ₹3 crore threshold is assessed by deposit, customer relationship or the product’s stated amount band. The written product terms, not the label in an advertisement, should answer that question.
How to estimate the financial effect before breaking an FD
- Find the contract date. Record the original opening or latest renewal date, because the policy version depends on it.
- Identify the product. Domestic, NRO, NRE and FCNR(B) deposits have different minimum periods and may have different withdrawal conditions.
- Confirm callability. A non-callable domestic bulk FD of ₹3 crore or more may not be breakable at all.
- Measure the actual holding period. Use the bank’s stated deposit dates, not an approximate number of months.
- Read the amount band. The rate for the amount actually held can differ from the rate printed on a general example.
- Apply the lower-rate test. Compare the actual-period rate and the original contracted rate, subtract the applicable penalty from each, and use the lower result.
- Request the bank’s closure quote. The quote should show principal, interest allowed, penalty or rate reduction, any interest already paid, and the net proceeds.
This process helps distinguish three different outcomes: a normal early closure with reduced interest, a closure before the minimum period with no interest, and a non-callable deposit that cannot be closed early under the product terms.
Before proceeding, compare the net proceeds with the cost of obtaining money elsewhere. The relevant comparison is not the original maturity value alone; it is the amount the bank will actually release after its rate test and any reconciliation of interest already paid. If the quote is unclear, ask for the calculation in writing rather than relying on a verbal estimate.
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Is a South Indian Bank FD insured?
Eligible savings, fixed, current and recurring deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5,00,000 per depositor per bank. The limit includes both principal and interest. DICGC states:
“Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity.”
The Ministry of Finance describes the same ₹5 lakh principal-and-interest limit and confirms that the scheme covers commercial banks, branches of foreign banks, local-area banks and regional rural banks. The insurance limit is not ₹5 lakh for every separate FD receipt. It is an aggregate limit for deposits held by one depositor in one bank in the same right and capacity.
How aggregation works
If you hold a savings balance, one or more South Indian Bank FDs and a recurring deposit in your individual name, the eligible amounts are generally added together for the ₹5 lakh limit. Principal and accrued interest are counted, so a principal exactly at ₹5 lakh can exceed the insured amount as interest accumulates.
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Joint-account wording matters. Two receipts with different account numbers may still be aggregated if they are held by the same depositor in the same capacity, while a genuinely different capacity may be assessed separately. Do not change names or ownership solely to pursue extra cover without understanding the legal, tax and operational consequences.
What insurance does not mean
- It does not guarantee the full value of deposits above ₹5 lakh in the same bank and capacity.
- It does not prevent a premature-closure penalty or a non-callable restriction.
- It does not turn an ineligible product or claim into an insured deposit.
- It is calculated per depositor, per bank, and per ownership capacity, not per branch or per FD receipt.
The ceiling includes accrued interest, so review the total periodically rather than checking only the opening principal. When balances approach the ceiling, obtain confirmation of how each account is classified and consider the level of concentration that is appropriate for your circumstances.
Comparing a South Indian Bank FD with another bank
A headline rate is only one part of the decision. Use the same facts for every bank and the same deposit amount, tenor and ownership structure.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →| Comparison point | Question to answer |
|---|---|
| Effective annual rate | What rate applies to the exact tenor, amount band, product and payout option on the booking date? |
| Senior-citizen uplift | Is there an additional rate, who qualifies, and does a joint holding remain eligible? |
| Premature closure | Is withdrawal allowed, what rate-reduction or penalty formula applies, and which opening-date rule governs? |
| Minimum tenor | How long must the deposit remain before any interest can be paid on early closure? |
| Callable status | Can the FD be broken at all, particularly for bulk deposits? |
| Payout and tax treatment | When is interest paid, and what tax withholding or reporting applies to your residency and account type? |
| Deposit insurance | How much eligible money would be aggregated under the ₹5 lakh DICGC limit at that bank? |
Compare like with like. A 30-month rate cannot be fairly compared with a 372-day rate if you may need the money in a year. Likewise, a slightly higher non-callable rate may be unsuitable for an emergency fund because access is restricted.
Also compare whether interest is paid monthly, quarterly or at maturity, as applicable to the product, and whether the payout option changes the quoted effective return. Ask the bank how any tax deduction or reporting applies to your residency and account type; do not assume that two products with the same headline rate have identical cash-flow or tax outcomes.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Booking-day checklist
- Confirm the rate-table effective date and save a copy.
- Check domestic resident/NRO, NRE or FCNR(B) classification.
- Verify the amount band and exact tenor, including any special tenor.
- Confirm senior-citizen eligibility and the names in a joint holding.
- Read whether the deposit is callable or non-callable.
- Record the premature-closure rule that applies to the opening or renewal date.
- Check the seven-day or one-year minimum, as applicable.
- Understand when interest is paid and how premature closure affects already credited interest.
- Add all eligible South Indian Bank balances in the same ownership capacity when considering DICGC protection.
- Keep the deposit advice, rate sheet and account statements together.
Before signing, check that the rate on the advice matches the row you selected and that names, residency status, tenor, amount and payout instructions are correct. Errors are easier to resolve before funds are locked than after a closure request.
Practical decisions
When early access is important
Choose a callable product and a tenor that matches your likely cash need. Keep emergency money outside a non-callable bulk FD, and obtain the bank’s closure quote before giving up the original contract.
When the deposit is near the insurance limit
Include expected interest when checking the ₹5 lakh DICGC ceiling. If the aggregate may exceed that amount, discuss whether a different ownership capacity or distribution across banks is appropriate for your circumstances; obtain professional advice before restructuring accounts.
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When a rate looks unusually attractive
Check whether it is a senior-citizen rate, a special tenor, a particular amount band, a callable or non-callable product, or a rate that applied on an earlier effective date. The dated table and deposit advice are more authoritative than an undated advertisement.
Frequently Asked Questions
What is the South Indian Bank FD interest rate today?
Use South Indian Bank’s official rate table and read the effective date above it. The schedule effective 19 June 2026 shows general domestic/resident rates below ₹3 crore from 2.90% for 7–30 days to 6.80% for 30 months, but the exact rate depends on tenor, amount band, product and payout option. Rates may change without notice.
How much will I lose if I break a South Indian Bank FD opened from 26 March 2026?
For covered retail rupee term deposits, the bank applies a 1-percentage-point reduction to the applicable rate. It compares the rate for the amount and period actually held with the original contracted rate, subtracts the penalty from each and uses the lower result. The charge reduces interest, not principal; the exact rupee payout requires a bank closure quote.
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Can I withdraw a South Indian Bank FD before maturity?
Usually, a callable deposit may be closed early subject to the applicable policy and bank calculation. Domestic rupee and NRO deposits have a seven-day minimum, while NRE and FCNR(B) deposits have a one-year minimum; withdrawal before the relevant minimum earns no interest. Non-callable domestic bulk deposits of ₹3 crore and above have no premature-withdrawal facility.
Does the 1% rule apply to every South Indian Bank FD?
No. The bank distinguishes deposits opened or renewed before 1 June 2022, from 1 June 2022, and from 26 March 2026 onward. Check the opening or latest renewal date and the product terms before applying the current rule.
Is my South Indian Bank fixed deposit insured?
Eligible fixed, savings, current and recurring deposits are covered by DICGC up to ₹5 lakh per depositor per bank, including principal and interest held in the same right and capacity.
Do several South Indian Bank FDs get separate ₹5 lakh insurance limits?
No. Eligible balances in multiple FDs, savings and recurring deposits are generally aggregated when held by the same depositor in the same ownership capacity. Separate account numbers or branches do not automatically create separate limits.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallDo senior citizens always receive 0.50% more?
The 19 June 2026 schedule generally shows a 0.50-percentage-point uplift for eligible resident senior citizens. The bank says the benefit can apply to an individual resident senior citizen or jointly with another resident citizen. Confirm the exact product row and eligibility on the booking form.
What should I save after booking?
Retain the dated rate sheet, application, deposit advice, renewal advice and account statements. These records show the effective rate, opening or renewal date, tenor, amount band, ownership and callability terms needed for any later closure or insurance question.
The Bottom Line
Check South Indian Bank’s dated rate table immediately before booking: the 19 June 2026 schedule lists 2.90% to 6.80% for general deposits below ₹3 crore, with a generally 0.50-point senior-citizen uplift. For deposits opened or renewed from 26 March 2026, early closure uses the lower applicable-rate test after a 1-point reduction; minimum tenors and non-callable bulk restrictions can override ordinary access. DICGC protection is an aggregate ₹5 lakh per depositor per bank, including principal and interest in the same ownership capacity. Save the rate advice and obtain a written closure quote before making a decision.
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