Latest South Indian Bank FD Interest Rates for Senior Citizens 2026

The South Indian Bank senior citizen FD scheme is designed to offer additional interest to resident seniors above the age of 60 years. Accordingly, South Indian Bank senior citizen FD interest rates are 0.50% p.a. higher than the rates offered on regular FDs. As of April 2026, the highest rate is 7.30% p.a. for a tenure of 2 years.

Read this article if you’re planning to book a South Indian Bank senior citizen FD. It will help you understand the latest South Indian Bank senior citizen FD interest rates, tenures, and premature withdrawal penalties before investing.

Key Features of the South Indian Bank Senior Citizen FD Scheme

Here’s a quick overview of the key features of the South Indian Bank FD scheme for seniors in 2026:

Feature	Details
Bonus Rate	0.50% p.a. over the regular rate
Highest Interest Rate	7.30% p.a. for a tenure of 2 years
Tenure Options	7 days to 10 years
Minimum Deposit	₹100 for Tax Gain FD ₹1,000 for Flexi Cumulative FD
Interest Payout	Monthly Quarterly At maturity
Premature Withdrawal Penalty	A flat penalty of 1.00% applies to all deposits opened or renewed after March 26, 2026. Premature withdrawal not allowed for Tax Gain deposits.
Loan Facility	Allowed up to 90% of the deposit value (except Tax Gain)
Nomination Facility	Available
Taxation	TDS applies if interest exceeds ₹50,000 in a financial year. Seniors can submit Form 15H to avoid TDS deduction if total income is below the taxable limit.
Auto-renewal	Allowed

Note: The above data is valid as of April 2026. Interest rates and other policies are subject to change without prior notice.

Latest South Indian Bank FD Interest Rates for Senior Citizens 2026

South Indian Bank FD interest rates on senior citizen FDs (Domestic Deposits below ₹3 Crores) effective April 2026 are listed below:

Tenure	Interest rate (p.a.)
7 days to 30 days	3.40%
31 days to 90 days	4.00%
91 days to 180 days	5.30%
181 days to 270 days	6.00%
271 days to less than 1 year	6.40%
1 year	6.75%
Above 1 year to less than 2 years	6.35%
2 years	7.30% (Highest)
Above 2 years to less than 5 years	6.70%
5 years	6.20%
66 months (Green Deposit)	6.50%
Above 66 months to 10 years	6.20%

Non-Callable Deposits (Above ₹1 Crore and Less Than ₹3 Crore)

For high-value, non-callable domestic deposits of 1 year, senior citizens earn an interest rate of **6.70% p.a.** (as of April 2026). No premature withdrawal is permitted for this scheme.

Tax Gain FD (Section 80C)

The current interest rate for the 5-year Tax Gain FD for senior citizens is **6.20% p.a.** This scheme provides tax deductions up to ₹1.5 Lakhs under Section 80C but carries a mandatory 5-year lock-in period.

Looking for More Options? Try the Senior Citizen FDs Available on GoldenPi!

As of April 2026, South Indian Bank offers peak returns of up to 7.30% p.a. for senior citizens. If you are looking for even more competitive rates, explore the GoldenPi platform to compare FDs from India's leading banks and NBFCs offering safe, rewarding retirement returns.

Frequently asked Questions

What is the minimum investment amount for South Indian Bank senior citizen FD?

The minimum investment amount depends on the FD scheme you pick. Minimum investment is ₹1,000 for the regular Flexi-Cumulative deposits, while it is ₹1,00,000 for the FD Vantage scheme. Similarly, the minimum investment is ₹100 for the Tax Gain deposit scheme.

What is the highest fixed deposit rate for senior citizens at South Indian Bank?

The highest South Indian Bank FD rate for senior citizens is 7.10% p.a. It is offered on a FD of less than ₹3 Crores for a tenure of 1 year.

Is TDS applicable on my senior citizen FD?

Yes. If your annual interest exceeds ₹1,00,000 in a financial year, TDS is applicable on interest earned at a rate of 10% (when PAN is submitted). However, if your total annual income is below the taxable limit, you can submit Form 15H as a self-declaration.

Can I withdraw from my senior citizen FD before the end of the tenure?

Yes. Premature withdrawals are allowed, but a penalty of 0.50% (1% if investment is over ₹5 Lakhs) is deducted from the applicable interest rate. However, if you’ve invested in a Tax Gain FD, you cannot make premature withdrawals during the 5-year term.