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Karnataka Bank FD Interest Rates

Karnataka Bank FD Rates 2021

Last Updated 18th Jan 2021

Karnataka Bank is one of most reliable FD providers amongst a number of FD providers in the market. Karnataka Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Karnataka Bank FD is 5.70%. Latest Karnataka Bank FD interest rate for senior citizens, on the other hand ranges between 3.80% to 6.95%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 45 days 3.40% 3.80%
46 days to 90 days 4.90% 5.30%
91 days to 180 days 5.20% 5.60%
181 days to 364 days 5.20% 5.60%
1 year to 2 years 5.30% 5.70%
Earn upto 6.95% on FD APPLY NOW

Karnataka Bank Fixed Deposit Features

Karnataka Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Karnataka Bank Fixed Deposit are:

  • Deposit Amount: Karnataka Bank FD can be opened with an amount as a low to up to .
  • FD Tenure: Ranges between 7 days to 10 years.
  • Interest Rate Range: 3.40% p.a. to 5.70% p.a.
  • Senior Citizens FD Rate: 3.80% to 6.95% p.a.
  • Highest Interest Rate: As per today’s rate, Karnataka Bank’s highest interest rate on FD is 5.70% offered for a tenure of 10 years.
  • Safety of Karnataka Bank Deposits: Karnataka Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Karnataka Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes:

Karnataka Bank Best FD Plan

We need to compare tenure wise latest FD rate of Karnataka Bank to choose the tenure at which it provides the highest interest rate. Karnataka Bank FD rates are best for the deposits with a tenure of 5 years 1 day to 10 years, wherein the current FD rate of interest is 5.70% p.a

If one is looking to invest in short term deposits with Karnataka Bank, FD interest rates range from 3.40% p.a. to 5.20% p.a for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Karnataka Bank FD rates for senior citizens range from 3.80% to 5.60% p.a.

If one is looking to invest in long term deposits, Karnataka Bank FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.70%. Senior citizens are offered special rates from bank with highest deposit rates of 6.10% p.a. on long term FDs.

Fixed Deposits of Karnataka Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Karnataka Bank are:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

Karnataka Bank Fixed Deposit Rates – Premature Withdrawal

Premature closure of Term Deposit with Karnataka Bank is along with the lower interest rate of 1% for deposits above Rs. 1 crore than the contracted rate. The penal provisions for premature closure on Karnataka Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Karnataka Bank

Karnataka Bank offers loan up to 0% against its own deposit. Note that Karnataka Bank will not give you loan against FD of any other bank. Karnataka Bank offers Loan against FD at the rate of 4.4% to 6.7%

FD Account Opening Process at Karnataka Bank

To open a Fixed Deposit account in Karnataka Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Karnataka Bank FD after reading the terms and conditions.

Nomination Facility on Karnataka Bank FD

Karnataka Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Karnataka Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

FAQs

What is the highest FD rate for Karnataka Bank?

You can earn a maximum interest of 5.70% on Karnataka Bank fixed deposit.

Are there any special rates for senior citizens FD of Karnataka Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 3.40% to 5.70%. Compared to this, the rate of senior citizens FD are in the range of 3.80% to 6.95%.

What are the current Karnataka Bank FD interest rates 2021?

Current interest for FD in Karnataka Bank ranges between 3.40% - 5.70%.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in Karnataka Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

Is it possible to change the tenure of my existing fixed deposit account with Karnataka Bank?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Karnataka Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

Can a customer open a FD account online in Karnataka Bank?

Yes, you can submit your application for opening a FD account on the website of Karnataka Bank. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in Karnataka Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.70%. For Karnataka Bank FD the number of years in which your FD will get doubled is; 72/5.70 = 13


Karnataka Bank News - Jan 2021
  • 2021-01-18 : Karnataka Bank Q3 net profit rises to ₹135 cr
    Karnataka Bank posted a net profit of Rs 135 crore for the December quarter of current financial year with a growth rate of 10%. Further, net interest income rose 21% to ₹614 crore from ₹508 crore in Q3FY20.
  • 2020-12-08 : Karnataka Bank changed its FD rates
    With effect from 6 December 2020, Karnataka Bank changed its FD rates. The fixed deposit rate for 7 to 45 days is 3.40%, for 46 to 90 days is 4.90% and it stands at 5.20% for 91 to 364 days. Further, the fixed deposit rate for one to two years is 5.30%, above two years to 5 years is 5.55% and stands at 5.70% for above five years to 10 years.
  • 2020-03-20 : Karnataka Bank revised its FD rates
    With effect from 18 March 2020, Karnataka Bank changed its FD rates. The fixed deposit rate for 7 to 45 days is 3.50%, for 46 to 90 days is 5% and it stands at 6% for 91 to 364 days. Further, the fixed deposit rate for one to two years is 6.25%, above two years to 5 years is 6.15% and stands at 6.05% for above five years to 10 years.
  • 2019-11-06 : Karnataka Bank revises Deposit rates
    Karnataka Bank revised its interest rates on fixed deposits up to Rs 2 crores on November 5, 2019. New rates for 7-45 days is 3.50%, for 46-90 days, it is 5.00%, and the rate for 91-364 days is 6.25%. For 1-2 years, the rate is 6.80% for 2-5 years; the rate is 6.70%, and for 5-10 years, the revised interest rate is 6.50%.
  • 2019-11-01 : Karnataka Bank revises fixed deposit rates
    With effect from October 31, 2019, Karnataka Bank revised its interest rates on fixed deposits up to Rs 2 crores. The revised rate for 7-45 days is 3.50%, for 46-90 days, the rate is 5.00%, and for 91-364 days, the rate is 6.25%. For larger tenure of 1-2 years, the rate is 6.90%, the rate for 2-5 years is 6.80%, and for 5-10 years, it is 6.50%. For senior citizens, the rate varies by 40 basis points.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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