South Indian Bank - Short-Term FD

Have surplus funds? Looking to invest it for the short term? You may consider investing in multiple South Indian Bank short-term FD schemes of 1 year or less. South Indian Bank is one of the leading private-sector banks headquartered in Thrissur, Kerala. It is a scheduled commercial bank and all its deposits are insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakh per depositor.

As of September 26, 2025, you can earn returns of up to 7.10% p.a. in South Indian Bank’s short-term FD schemes. Need more information? In this article, you will learn about the various schemes, the latest interest rates, and understand the rules for penalty and premature withdrawal.

What are the Latest South Indian Bank Short-Term FD Interest Rates 2025?

As an investor looking to park surplus funds, South Indian Bank runs multiple short-term FD schemes, such as:

• Domestic Term Deposit
• NRE Term Deposit 
• Non-callable deposit

If we talk about returns, they are modest in ultra-short periods (up to 3 months), but they begin to look more rewarding beyond 6 months. Notably, a 1-year FD offers the highest short-term rate at 6.60% for general investors and 7.10% for senior citizens (inclusive of a 0.50% bonus rate). Please note that senior citizen bonus rates apply only to resident individuals or joint accounts with residents.

For more clarity, check out the latest South Indian Bank short-term FD interest rates 2025 for the various schemes below:

A) Domestic Term Deposit - Short-Term FD Rates For General Customers

Period	General Customers Rate (p.a.)
7 days to 30 days	2.90%
31 days to 90 days	3.50%
91 days to 99 days	4.50%
100 days to 180 days	4.80%
181 days to 270 days	5.70%
271 days to less than 1 year	6.00%
1 year	6.60%

Note: The above rates are applicable as of September 26, 2025. Rates are subject to change. Please check the latest rates before investing.

Some Important Points

• Short tenures (below 3 months) offer very low yields.
• Returns improve sharply after the 90-day mark.
• The 181 to 270-day window offers 5.70% and is a sweet spot before hitting 1 year.
• A full 1-year FD offers the highest rate in the short-term category (6.60%)

B) Domestic Term Deposit - Short-Term FD Rates For Senior Citizens

Period	Senior Citizens Rate (p.a.)
7 days to 30 days	3.40%
31 days to 90 days	4.00%
91 days to 99 days	5.00%
100 days to 180 days	5.30%
181 days to 270 days	6.20%
271 days to less than 1 year	6.50%
1 year	7.10%

Note: The above rates are applicable as of September 26, 2025, and are inclusive of the extra 0.50% available to senior citizens. Rates are subject to change. Please check the latest rates before investing.

Some Important Points

• The highest South Indian Bank short-term FD interest rate for senior citizens is 7.10% p.a. for 1 year.
• Rates rise gradually across tenures. The bank rewards longer holding periods.
• There is a strong mid-range of 181 to 270 days where seniors can get 6.20%.
• Deposits below 3 months (3.40 and 4.00%) offer slightly higher interest rates than savings accounts.

C) NRE Term Deposit

Period	Rate (p.a.)
1 year	6.60%

Note: The above rates are applicable as of September 26, 2025. Rates are subject to change. Please check the latest rates before investing.

Some Important Points

• If the deposit is closed before 1 year, no interest will be paid. Only the principal is returned.
• Senior citizens do not get an extra 0.50% rate on NRE deposits.
• This South Indian Bank short-term FD scheme is ideal only if funds can be locked for a full year or more; otherwise, there’s no interest payout.
• Interest earned on NRE deposits remains tax-free in India.

D) Non-Callable Deposit

Period	General Customers Rate (p.a.)	Senior Citizens Rate (p.a.)
1 year	6.70%	6.70%

Note: The above rates are applicable as of September 26, 2025. Rates are subject to change. Please check the latest rates before investing.

Some Important Points

• This is a high-ticket size South Indian Bank short-term FD scheme restricted to deposits above ₹1 crore.
• Both general investors and senior citizens earn the same return of 6.70%. 
• Senior citizens do not get the extra benefit of 0.50% p.a
• No premature withdrawal is allowed.
• The 6.70% rate is slightly higher than the general 1-year callable FD (6.60%).

What are the Premature Withdrawal and Penalty Rules?

When you break a South Indian Bank short-term FD before maturity, the bank will not give you the full contracted rate. Instead, the effective rate you earn will be adjusted downward based on this penalty slab table:

Penalty Slabs	Penalty Rate
Deposits below ₹5 lakhs	0.50% penalty
Deposits ₹5 lakhs & above	1% penalty

Note: This penalty is applied uniformly across all tenures. The above penalty rates are applicable as of September 26, 2025. Rates are subject to change. Please check the latest rates before investing. 

How the Effective Rate is Calculated?

Using the above penalty slab table, the bank checks two possibilities and gives you the lower of the two:

• The interest rate applicable for the actual period you stayed invested, minus the penalty

or

• The original FD contracted rate minus the penalty
  
  

For more clarity, let’s study an example:

Let’s say you booked a 1-year FD of ₹7 lakh at 6.60%, but break it after 200 days. The rate for 200 days is 5.70% (as of September 26, 2025). Now, you will attract a penalty rate of 1% (as the deposit is more than ₹5 lakh). So, you get the lower of these two rates: 

• 5.70% – 1% = 4.70%

and

• 6.60% – 1% = 5.60%
  
  

In this case, the South Indian Bank short-term FD rate applicable to you will be 4.70% p.a.

Book Your FD Online Without Branch Visits! Check Multiple FD Options on the GoldenPi Platform

South Indian Bank runs several short-term FD schemes that allow you to deposit money for one year or less. It offers financial products for:

• Domestic retail investors
• High-net-worth individuals 
• NRE customers

As of September 26, 2025, the highest short-term FD rate stands at 6.60% p.a. for general investors and 7.10% for senior citizens. In the non-callable deposit scheme, this rate increases by 10 basis points to 6.70% for deposits above ₹1 crore (applicable to both general customers and senior citizens). 

But that’s not all. If you’re exploring more short-term FD options, the GoldenPi platform lists deposits from leading small finance banks and NBFCs. The entire process is 100% digital and can be completed online in just a few minutes.