South Indian Bank Recurring Deposit Rate

Recurring deposits inculcate a habit of saving which gives you a stable source of funds when you need them the most. Though fixed deposits offer much the same, you may not have a large amount of money to invest in fixed deposits whereas you can invest an amount as low as INR 500 in recurring deposits.

Features of South Indian Bank recurring deposit Account

The following are the features of the South Indian Bank recurring deposit account -

• The minimum amount of deposit required is 500.
• Tax will be deducted on interest.
• TDS certificate in form 16A will be supplied.
• Interest rates are allocated for specific periods. If the client wishes to withdraw his savings prior to expiry of the term, interest will be deducted as applicable.
• Penalties may be applied for premature withdrawal.
• An overdraft of up to 90% of amount in deposit is available subject to certain conditions.
• Easy transfer of deposit amount via net banking, ECS, or direct debit from SB account.

Benefits of South Indian Bank Recurring Deposit Account

The South Indian Bank Recurring Deposit account offers you the following benefits -

• It is an easy way to deposit your monthly savings.
• You can earn a reasonable interest on your savings.
• It is perfect for anyone who wants to set aside a part of their income for future.
• You can have tenure of your choice depending on when you will need the money.
• Interest rates are comparable to fixed deposits.
• It is a safe investment as there is no market risks involved.
• Interest rate remains constant throughout the tenure.
• Nomination facility is available.
• You can transfer the maturity amount directly into a fixed deposit so that it continues to earn interest.

South Indian Bank Recurring Deposit Interest Rates

The following are the interest rates applicable on South Indian Bank Recurring Deposit Account. Please bear in mind that interest rates are subject to change by the bank authorities at any time. As such it would be advisable to visit the bank branch or website for the current rates.

The rates given below are applicable from October 5th, 2018.

South Indian Bank's Recurring Deposit Calculator

The South Indian Bank website has a recurring deposit calculator that helps you to estimate the amount you will receive if you deposit a certain sum of money for a certain period at applicable interest rates. This will give you an idea of how much cash you will have at a certain time in future and you can plan your finances accordingly.

Advantages of opening a Recurring Deposit Account

There are many advantages to opening a recurring deposit account. Some of these include -

• Recurring deposit accounts offer higher interest than SB accounts
• You can get a loan or overdraft of up to 90% of the amount in deposit
• Interest remains fixed through the tenure which means higher income
• You can open a recurring deposit account by depositing an amount as low as INR 500
• You can make frequent small deposits into the account as and when you have some cash to spare

Disadvantages of opening a Recurring Deposit Account

• Interest income attracts tax which will be deducted at source
• Premature withdrawals attract penalty
• Interest rates are lower than other types of investment - however these may involve higher risks

South Indian Bank recurring deposit FAQs