Karnataka Bank RD Interest Rates 2024

Karnataka Bank Ltd, a major 'A' Class Scheduled Commercial Bank in India, is a premier private sector bank. The bank provides a whole value package, acting as a one-stop shop for all banking needs.

They offer Working Capital Finance, Term Loans, and Infrastructure Finance to assist businesses in growing. The bank's activity is divided into four divisions: treasury, corporate and wholesale banking, retail banking, and other banking operations. 

From all of these banking products and services that the bank provides to its customers, there is also the recurring deposit scheme. It is known to be one of the most famous products that the bank offers to the customers, and this post speaks about the interest rates, and other attributes of recurring deposits from the Karnataka Bank.

Karnataka Bank RD Interest Rates 2024

Typically, the bank has distinct charges for quantities up to and including Rs.2 crore and amounts greater than Rs.2 crore to Rs.10 crore. Currently, the rates for both sectors are the same.

The following are the interest rates for recurring deposit accounts less than Rs.2 crore:

Tenure

Karnataka Bank RD interest rates for general citizens

RD interest rate in Karnataka Bank for senior citizens

7 days - 45 days

3.40%

3.40%

46 days - 90 days

4.90%

4.90%

91 days - 364 days

5.20%

5.20%

1 year - 2 years

5.30%

5.70%

Above 2 years - 5 years

5.55%

5.95%

Above 5 years - 10 years

5.70%

6.20%

Karnataka Bank RD Scheme

Karnataka Bank provides competitive interest rates on recurring deposits (RDs). The duration of the RDs ranges from 7 days to 10 years. The bank's rate of return ranges from 3.40% per annum to 5.70% per annum. Senior citizens receive an additional 0.40% p.a. interest rate.

Who is Eligible for the RD from Karnataka Bank?

Individuals, Hindu United Families, public and private corporations, proprietary and partnership firms, societies and trusts, limited liability partnerships, and government organizations can all create RD accounts with Karnataka Bank. 

If you terminate a recurring deposit account before it matures, you cannot get the entire amount of interest guaranteed. A penalty will be imposed if money is not deposited into the account on a monthly basis. If you do not make monthly deposits but the account reaches maturity, it is termed a discontinued account, and the bank reserves the right to pay you or not.

Types of RD Accounts from Karnataka Bank 

  • Short Term: Karnataka Bank's rate of interest on short-term recurring deposits ranges from 3.40% to 5.20% p.a. Short-term RDs are ones that are open for a duration of seven days to less than a year.

  • Medium Term: Medium-term RDs are those which have a tenure between 1 year and up to 5 years. Karnataka bank offers interest in the range of 5.30% p.a. and 5.55% p.a.
  • Long Term: Long-term recurring deposits are RD accounts that have been open for longer than three years. On such deposit tenures, the rate of return is 5.70% p.a.

Kinds of RD Accounts from Karnataka Bank

1) Platinum Lakhpati

Deposit terms range from 45 to 120 months in 15-month increments. This is a unique strategy in which a fixed sum invested monthly grows to over a lakh rupees at the end of the chosen period. The amount is fixed according to the tenure selected. Contact the bank directly for additional information.

2) General RD Account

RD duration: Minimum 6 months, maximum 10 years. Senior citizens receive preferential interest rates. Interest TDS is applied. Nominations are accepted.

FAQs

Q1. How can I make an application for a recurring deposit?

If you are a new customer, you should begin by opening a savings account that can be connected to an RD account. You could also simply go to your nearest bank and fill up an RD application form.

Q2. What are the requirements for opening an RD account with Karnataka Bank?

Individuals, in their own name or jointly with others, minors over the age of 10, minors who are under the age of 10 under the guardianship of parents/legal guardians, HUFs, associations, clubs, societies, trust, proprietorship/partnership Firm, companies, corporate body, etc. can open RD accounts with Karnataka bank. Accounts can also be opened by those who are illiterate or blind.

Q3. Is there a loan option for Karnataka Bank recurring deposits?

Yes, according to the bank's policies, lending facilities are accessible on Karnataka Bank's recurring deposits.

Q4. How can I make a monthly deposit for a Karnataka Bank recurring deposit?

The Karnataka Bank RD monthly installment can be remitted in cash or by check.

Q5. What is the minimum deposit amount for a Karnataka Bank recurring deposit account?

The minimum deposit amount required by Karnataka Bank is Rs.50 per month and multiples thereof.

Q6. What is the term of the RD account?

RDs are typically available from banks for terms ranging from 6 to 120 months (10 years). Some banks also provide 240-month RDs.

Q7. What documents are needed to open an RD account?

The following documents are required:

  • Photographs in passport size.
  • Any other KYC documentation that the bank may require.
  • Proof of residency, PAN Card, and ID
  • Age verification (for senior citizens and minors).
  • Application form completed.
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