South Indian Bank has revised interest rates on fixed deposits (FDs) and is now offering up to 6.15% returns.
The bank said senior citizens who book FDs of up to 5 years will get 6.15% interest rate as against general public's 5.65% return. Not only this, tax saving FDs, too, will get 6.15% interest rate for senior citizens as against 5.65% for general public.
The bank announced a revision in its interest rates on FDs less than ₹2 crore. Interest rates between 2.5 and 5.50 per cent interest would be offered to the general public. Senior citizens would be earning interest in the range of 3-6.15 per cent on term deposits maturing between a week and 10 years.
South Indian Bank FD rates
With effect from April 22, 2022, the bank is offering 2.5 per cent interest on domestic fixed deposits of less than ₹2 crore maturing in seven to 30 days. The interest on these deposits extends between a month and 90 days is three per cent every year. Fixed deposits maturing in 91-180 days and 181-270 days pay 3.80 per cent and 4.10 per cent, respectively. Term deposits maturing in 271 days to less than a year earn 4.50 per cent interest and those earning between a year to less than 30 months offer 4.90 per cent interest, respectively.
The bank is now offering new interest rates of 5.25 per cent and 5.40 per cent on deposits maturing in a month to less than three years and three years to less than five years, respectively. The maximum interest rate now offered by this bank on FDs up to ₹1.5 lakh is 5.65 per cent while the same is 5.50 per cent on these deposits in five years and up to 10 years. Senior citizens will continue to get a 0.50 added premium on their deposits across all tenures.
FD interest rates hike
South Indian Bank is not the first bank to hike its interest rates. For the past several months, we have seen many private sector banks offering new interest rates in response to the Reserve Bank of India (RBI)’s revised policies. Investors have benefited from the high-interest rates offered by many private sector banks. Currently, YES Bank is offering the highest interest rate on its FDs followed by RBL Bank.
The current volatile condition of the market has made it imperative for investors to look for new investment sources that offer them higher interest rates. Investments in FDs are considered better only their interest rates go up though the hike is not enough to mitigate the effect of inflation on our savings.