Karnataka Bank FD Rates

Minor Deposit Schemes

Maturity Tenure	Interest Rates (% p.a.)
7 days to 10 years	As applicable for Domestic Fixed Deposit Schemes
Above 10 years	5.50

Senior Citizens FD Rates w.e.f. 3 September 2024

Maturity Tenure	Interest Rates (% p.a.) for deposits less than Rs. 3 crore	Interest Rates (% p.a.) for deposits Rs 3 crore to Rs. 5 crore
375 days	8.00	8.00
1 year to 2 years	7.85	7.85
Above 2 years to 5 years	7.00	7.00
Above 5 years to 10 years	6.30	6.30

Interest Rates of Tax Saving Fixed Deposits

Name of the Scheme	Interest Rates (% p.a.)
	For General Public	For Senior Citizen
Karnataka Bank or KBL Tax Planner (5 years)	6.50	6.90

Interest Rates of NRE Rupee Term Deposits w.e.f. 3 September 2024

Maturity Tenure	Interest Rates (% p.a.) for deposits below Rs 3 crore	Interest Rates (% p.a.) for deposits Rs 3 crore to Rs 5 crore
375 days	7.50	7.50
1 year to 2 years	7.35	7.35
Above 2 years to 5 years	6.50	6.50
Above 5 years to 10 years	5.80	5.80

Note: No differential interest rates are offered to senior citizens

Fixed Deposit Interest Rates on Foreign Currency Non-Resident (FCNR) and Resident Foreign Currency (RFC) Deposits w.e.f. 1 August 2023

Tenure	Interest Rates (% p.a.)
	USD	GBP	EUR	CAD	AUD	JPY	CHF	SEK	HKD	SGD
1 year only	5.50	5.35	3.00	4.30	3.50	0.15	0.05	0.15	0.33	0.42
Above 1 year to less than 2 years	5.50	5.35	3.00	4.30	3.50	0.15	0.05	0.15	0.33	0.42
2 years to less than 3 years	4.65	3.25	1.50	4.10	3.50	0.16	NA	NA	0.72	0.84
3 years to less than 4 years	4.20	2.84	1.50	3.30	3.25	0.12	NA	NA	0.74	0.78
4 years to less than 5 years	4.00	2.82	1.50	3.27	3.25	0.09	NA	NA	0.65	0.78
5 years only	3.90	2.72	1.50	3.22	3.50	0.09	NA	NA	0.57	0.78

Types of Karnataka Bank FD Schemes

Regular Fixed Deposit

• Deposit amount: Minimum – Rs 100; Maximum – no limit
• Tenure: 7 days to 10 years
• Depositors have the option to opt for quarterly, monthly (at a discounted rate), half-yearly or yearly interest payout
• For monthly interest, depositors need to maintain a minimum deposit of Rs. 5,000 and a minimum duration of 1 year
• For senior citizens (age 60 years and above), monthly interest is paid without discount
• The interest amount will be credited to the depositor’s account held in any of our branches or any branch of another bank via National Electronic Fund Transfer (NEFT), ‘at no cost’, at the depositor’s request
• Loan and nomination facility is available
• No interest will be paid if the FD is prematurely closed before the completion of the minimum tenure
• Senior citizen FD depositors get 0.40% extra over the general rate for deposits of up to Rs 5 crore under Domestic FD and Abhyudaya Cash Certificate (ACC) Schemes for tenure 1 to 5 years and an additional 0.50% over the general rate for tenures above 5 years to 10 years w.e.f. 9 November 2020
• Minors Term Deposit may be accepted till the minor attained the age of majority or for a maximum of 120 months, whichever is later or until the competent court orders otherwise
• FD can be transferred from one branch to another branch on submission of the request letter along with the original FD receipt duly signed by the deposit holder(s)
• Deposits opened or renewed on or after 1 February 2016 will be automatically renewed from the maturity date for the same period of original FD
• Minor Term Deposit is excluded from the auto-renewal facility

Tax Planner – Fixed Deposit and Abhyudaya Cash Certificate

• Deposits under this scheme are eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C in each financial year
• Deposit amount: Minimum – Rs 100; Maximum – Rs 1.5 lakhs in a financial year
• Tenure: 5 years
• Interest Payment:
  • KBL Tax Planner – FD: Depositors can opt for quarterly or monthly interest (at a discounted rate) payout
  • KBL Tax Planner – ACC: The interest will be paid at the time of maturity and interest will be compounded at quarterly rest
• Nomination facility is available
• Deposits are not allowed to be pledged to secure a loan or as security for any other asset.
• KBL-Tax Planner and KBL-Tax Planner ACC can also be provided to NRI customers under NRO status provided the depositor elects not to be governed by the provision of Chapter XII-A of the Income Tax Act, 1961.

Abhyudaya Cash Certificate (ACC) (With Reinvestment of Interest Component)

• This scheme is for individuals who require a lump sum payment at the end of a specified time but do not require periodical interest
• Quarterly interest accrued is credited back to the deposit amount, leading the FD to earn compound interest at quarterly intervals
• Deposit amount: Minimum – Rs 100; Maximum – no limit
• Tenure: 6 months to 10 years
• Nomination and loan facility is available

Soulabhya Deposit (Flexi Deposit Scheme)

• Also known as ‘Twin Gain’, this scheme provides easy withdrawal of money in case of need and the balance amount continues to earns interest at the contracted rate
• Loan and nomination facility is available
• This scheme offers two options to depositors which when once exercised at the time of deposit, is irrevocable
• Option 1
  • Deposit will be accepted initially for a duration of 46/30 days or duration as may be decided from time to time and thereafter it will be automatically renewed together with accrued interest for subsequent 38/59 blocks of 46/30 days each till there is an instruction to the contrary by the depositor
  • The interest rate applicable for each renewal will be the rate prevailing on the date of renewal as prescribed by Head Office from time to time. Interest will be calculated on completion of each block of 46/30 days
  • The depositor can withdraw the deposit amount in units of Rs. 1,000 at any time as and when required during the currency of deposit. However, no interest is payable in respect of units withdrawn before the completion of 30 days block
  • A consent letter for an automatic renewal is obtained.
• Option 2
  • Tenure: 3 months to 5 years
  • Interest will be compounded quarterly and credited to the respective deposit account on a quarterly basis (as in the case of ACC)
  • The depositor can withdraw the deposit in units of Rs. 1,000 each as and when required before the agreed period

Non-Resident (External) Fixed Deposit Account

• Eligibility: Non-Resident Indians (NRI) and PIOs – Persons of Indian Origin / OCI (Overseas Citizen of India)
• Depositors can open joint accounts with other NRIs or resident’s close relative
• Tenure: 1 year to 10 years
• The principal and interest earned in the account are freely repatriable
• Nomination facility is available
• The interest earned on the NRE account is exempt from tax

Non-Resident (Ordinary) Fixed Deposit Account

• Eligibility: Non-Resident Indians (NRI) and PIOs – Persons of Indian Origin / OCI (Overseas Citizen of India)
• The account can be jointly held with Resident Indians
• Tenure: 1 year to 10 years
• The amount in the account can be utilized for local payments and also for other investments on a non-repatriation basis
• Interest earned on the deposit amount is subject to tax as applicable
• Nomination facility is available

Resident Foreign Currency (RFC) Fixed Deposit Account

• Depositors can hold currencies in US Dollars (USD), Euro (EUR), Pound Sterling (GBP), Japanese yen (JPY), Australian Dollar (AUD), Canadian Dollar (CAD), Swiss franc (CHF), Singapore dollar (SGD), Swedish krona (SEK) and Hong Kong dollar (HKD)
• Tenure: 1 month to 5 years
• RFC account can be opened by NRIs on return to India for permanent settlement (Resident outside India for a continuous period of at least 1 year prior to return)
• The account can be opened by transfer from FCNR/NRE account or by remitting travellers’ cheques or foreign currency notes
• Funds are free from all restrictions regarding utilization of foreign currency balances, including any restriction on investment outside India
• Nomination facility is available

Foreign Currency Fixed Deposit Account (FCNR)

• Depositors can hold currencies in USD/EUR/ CAD/AUD/ GBP/SGD/HKD/CHF
• Tenure: 1 year to 5 years
• Depositors can open a joint account with other NRIs or resident close relative
• Nomination facility is available
• Interest on deposits is exempt from tax

Premature Withdrawal of Fixed Deposits, NRO & NRE Deposits

Stated below are the penal rates to be levied for premature closure of domestic fixed deposits, NRO and NRE term deposits:

Karnataka Bank FD Interest Calculator

Fixed Deposit Interest Rate Calculator is an online tool that helps investors to calculate the maturity value of the deposit amount at the Karnataka Bank FD Rate available. The amount of FD, Fixed Deposit interest rates, deposit tenure and compounding frequency of the interest determine the maturity value of the chosen FD scheme at the end of its tenure.