South Indian Bank FD Interest Rates

South Indian Bank is a trusted private sector bank that’s popular among low-risk investors for attractive FD rates and its long-standing heritage. As of **May 2026**, South Indian Bank FD rates on domestic deposits below ₹3 Crore range from **2.90%–6.80% p.a.** for regular customers and **3.40%–7.30% p.a.** for senior citizens (peaking at the 2-year tenure).

South Indian Bank fixed deposit rates vary for NRE term deposits, tax saving deposits, and bulk deposits above ₹3 Crore. Read this article to find out the latest South Indian Bank FD rates and the updated penalty structures for 2026.

South Indian Bank FD Rates 2026 - Domestic/NRO Deposits (Less than ₹3 Crore)

The following table displays the South Indian Bank FD rates for domestic deposits under ₹3 Crore, reflecting the latest revisions effective April 2026: 

Tenure	General Interest Rate (p.a.)	Senior Citizen Interest Rate (p.a.)
7 days to 30 days	2.90%	3.40%
31 days to 90 days	3.50%	4.00%
91 days to 180 days	4.80%	5.30%
181 days to 270 days	5.50%	6.00%
271 days to less than 1 year	5.90%	6.40%
1 year	6.25%	6.75%
Above 1 year to less than 2 years	5.85%	6.35%
2 years	6.80% (highest)	7.30% (highest)
Above 2 years to less than 5 years	6.20%	6.70%
5 years to less than 66 months	5.70%	6.20%
66 months (Green Deposit)	6.00%	6.50%
Above 66 months up to and including 10 years	5.70%	6.20%

Note: The interest rates mentioned above are valid as of May 2, 2026. Rates are subject to change. Please verify the latest rate card before investing.

Some Important Points 

• Senior Citizen Premium: The additional 0.50% p.a. benefit applies only to resident senior citizens (individually or jointly held).
• Updated Penalty Rule: Effective **March 26, 2026**, the bank has standardized the premature withdrawal penalty to a flat **1.00%** for all retail term deposits, regardless of the deposit amount or tenure.
• Minimum Tenure: No interest is payable if the deposit is closed before completing 7 days.
• TDS: Applicable if total annual interest exceeds ₹40,000 (₹50,000 for seniors).

South Indian Bank FD Rates 2026 - Tax Saver FD

South Indian Bank offers the ‘Tax Gain 2006’ scheme, allowing deductions under Section 80C. This scheme carries a mandatory 5-year lock-in period.

Tenure	General Customers	Senior Citizens
5 Years	5.70% p.a.	6.20% p.a.

Note: No premature withdrawal or loan facility is permitted for Tax Saver FDs during the 5-year tenure.

South Indian Bank FD Rates - NRE Term Deposits (Less Than ₹3 Crore)

NRI investors can park funds in NRE term deposits to earn tax-free interest in India. Rates for **May 2026** are as follows: 

Tenure	Rate (p.a.)
1 year	6.25%
2 years	6.80% (highest)
Above 2 years up to 10 years	5.70% – 6.20%

Note: NRE deposits must complete at least 1 year to earn interest. Senior citizens do not receive additional preferential rates on NRE accounts.

South Indian Bank Bulk FD Rates 2026 (₹3 Crore and Above)

For large-value investments, the bank offers callable and non-callable options. Non-callable deposits generally offer a slightly higher rate (approx. 0.10% - 0.25% extra) but prohibit early exit.

Tenure	Domestic Callable	Domestic Non-Callable
1 Year	6.35%	6.60%
2 Years	6.60%	6.60%
3 Years to 5 Years	5.60% – 5.80%	5.70% – 5.90%

Want Higher Interest Rates on Your FD? Try the Options on GoldenPi

While South Indian Bank offers safety and competitive rates of up to 7.30% p.a., investors seeking even higher yields can explore curated FD options from leading NBFCs and Small Finance Banks on the GoldenPi platform. In 2026, many AA and AAA-rated corporate FDs are offering interest rates ranging from **8.50% to 9.25% p.a.** with a completely paperless, digital booking process.