Karnataka Bank FD Interest Rates

3.40% - 5.60%
Interest rates
3 months - 10 years
Time Period
100 - no limit
Min. - Max amount
QUARTERLY
Compounding

About Karnataka Bank FD

Karnataka Bank is a significant commercial bank in Karnataka. Its headquarters are in Mangalore, and it provides outstanding investment opportunities as well as retail services like loans, mortgages, credit cards, and so on. A fixed deposit is the most common kind of investment offered by the bank. For risk-averse investors, a fixed deposit is an excellent investment alternative. Karnataka Bank provides a variety of fixed deposit programs with excellent interest rates to both ordinary consumers and older persons. The bank offers fixed deposit programs ranging from 7 days to 10 years.

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Started On1924
Head QuartersKarnataka
CRISIL RatingNA
CEOMahabaleshwara M. S
Listed on exchange asKarnataka Bank Ltd.
ICRA RatingNA

Karnataka Bank FD Rates 2022

TenureRegular customersSenior citizens

Features and Benefits of Karnataka Bank FD

  • The minimum deposit required is Rs.100.
  • There is no upper limit to the amount of money that can be deposited.
  • The scheme's duration spans from 7 days to 10 years.
  • You can take out a loan against the money in your account.
  • There is a facility for premature withdrawal. However, there will be a penalty if you withdraw too soon.
  • Nominees can be added at any time.

Types of Karnataka Bank FD Schemes

Karnataka Bank Fixed Deposit Scheme

  • The minimum deposit amount is Rs. 100.
  • The deposit period can range from 7 days to 10 years. 
  • Interest is paid quarterly, half-yearly, or yearly (at the customer's request). 
  • Premature withdrawal is permitted, and no charges are levied. 
  • Loan and nomination facilities are available. 
  • TDS is levied on interest.

Karnataka Bank Abhyudaya Cash Certificate (ACC)

  • This is also known as the Term Deposit Re-Investment Plan. 
  • The minimum deposit amount is Rs. 100, and subsequent deposits must be in multiples of Rs. 100. 
  • There are no periodic interest distributions, and the deposit period ranges from 6 months to 10 years. 
  • Nomination and loan facilities are available.

Karnataka Bank Tax Planner Scheme

  • The minimum deposit is Rs. 100 (in multiples of Rs.100 after that), and the maximum amount is Rs. 1.5 lakh. 
  • Tax exemption under section 80C of the Income Tax Act, 1961. 
  • The deposit has a 5-year lock-in period. 
  • No premature withdrawal is permitted. 
  • No loan against the deposit Interest income is taxable, and a nomination facility is provided.

Karnataka Bank Soulabhya Deposit Scheme

  • The minimum deposit is Rs. 5,000, and subsequent deposits are in multiples of Rs. 1,000. 
  • There are two options: keep the deposit for 46/30 days, or pick a duration of 3 months to 5 years. 
  • Loan and nomination services are available.

Term wise Karnataka Bank FD Rates

Short-Term Deposits

The FD provides short-term deposits ranging from 7 days to 1 year. The interest rates for general customers are 3.4% to 5.1%, and the same stands for senior citizens.

Medium-Term Deposits

Medium-term deposits range from 1 year to 4 years and 11 months, and the interest rates for general customers are 5.2% to 5.5% and 5.6% to 5.9% for senior citizens.

Long-Term Deposits

Long-term deposits range from 5 years to 9 years and 11 months. The interest rates for general customers are 5.6% and for senior citizens are 6.1%.

Karnataka Bank vs Other Banks' FD Rates

NameTenureInterest rate

How to invest in Karnataka Bank FD?

One can apply for Karnataka Bank FD on both online and offline modes. One can visit the bank’s official website followed by downloading and filling out the form. Alternatively, one can visit the branch to get the form. Irrespective of the modes, one has to fill out the details, affix the signature at the prescribed place in the form and submit it to the concerned bank official for further processing. On successful verification, the bank will open a fixed deposit account.

Eligibility to Open Karnataka Bank FD Account

Individuals or entities satisfying the following criteria can opt for a fixed deposit in Karnataka Bank –

  • Indian residents
  • Partnership firms
  • Government units
  • HUFs
  • Limited companies
  • Sole proprietorship

Documents Required to Open Karnataka Bank FD

The following documents have to be furnished for opening a Karnataka Bank FD-

  • PAN Card
  • Aadhar Card
  • FD application form
  • Government-approved identity proof (Passport, Aadhar Card, Driving License, PAN Card, Voter ID)
  • Government-approved address proof (Telephone Bill, Aadhar Card, Voter ID, Electricity Bill)

Tax on Karnataka Bank Fixed Deposit

An investment in Karnataka Bank Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Karnataka Bank FD entitle to tax saving under Section 80C of the Income Tax Act.

Also, note that the interest income from the Karnataka Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Karnataka Bank FD exceeds Rs. 40,000 p.a.

For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.

Loan Against Karnataka Bank FD

Karnataka Bank provides loans against their Fixed Deposits. The loan and the rate of interest for the loan depend on the rules set by Karnataka Bank.

Premature Closure of Karnataka Bank FD

Karnataka Bank permits premature withdrawal of FDs, excluding the tax-saving deposits. For deposits below Rs 2 crore, Karnataka bank will not levy any penalty. However, if the deposits above Rs 2 crore opt for premature withdrawal, the bank charges 1% interest as a penalty on the contracted rate.

FAQs

What is the Karnataka Bank Fixed Deposit's minimum deposit period?

Karnataka Bank Fixed Deposit has a 7-day minimum deposit term.

What is the maximum Karnataka Bank Fixed Deposit deposit period?

Karnataka Bank Fixed Deposit has a minimum deposit duration of ten years.

What documents will I be needing?

You will need the following papers:

  • PAN card(mandatory)
  • Aadhaar card
  • Voter ID
  • Passport
  • Driving license
  • Senior Citizen ID Card

Can a Karnataka Bank FD account holder terminate it at any time?

Yes, except for tax saver FDs, an account holder can close his/her Yes Bank FD at any time (comes with a lock-in period of 5 years.)

What is the required minimum deposit for the Karnataka Bank Soulabhya Deposit Scheme?

The minimum deposit amount for the Karnataka Bank Soulabhya Deposit Scheme is Rs. 5,000, with subsequent deposits in multiples of Rs. 1,000.

Calculate Karnataka Bank FD Interest
Investment Amount
₹25,000.00
Time Period
9 Months
1 Year
2 Years
3 Years
Maturity Amount
Karnataka Bank
@5.2% p.a
Get higher interest rates
online upto 0%
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