Private sector South Indian Bank has announced a fixed deposit scheme as a New Year gift for its customers. The scheme named as ‘SIB: Eighty Plus' offer attractive returns of 11% when most banks in the industry are offering relatively lower interest rates on fixed deposits.
Under this scheme, investors can avail 11% interest rate at a minimum deposit of Rs 50,000 parked for 39 months. Besides there is an additional benefit of free death insurance cover up to Rs 1lakh.
Commenting at the launch of this scheme, CEO and Managing Director of the bank, Dr. V.A. Joseph said: "This new year gift from South Indian Bank which is completing 80 years of trusted service to the nation on 29/01/09 is the outcome of the Banks' search for value -addition to the customers of the bank who opt for the bank deposits which are safe and give a reasonably good yield, at the time of the present financial crisis."
Also the bank offers an additional 25 basis points to the senior citizens investing in the scheme.
It has been evaluated that when a deposit of Rs 50,000 will mature after 36 months, it would yield Rs 71,143 which means a yield of 13.01%. Further the yield for senior citizens would be 13.36% to Rs 71,707.
The scheme is valid for both domestic and non-resident ordinary accounts and would be accepted only till March 31st, 2009.