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Karnataka Bank is a leading private sector bank headquartered in the city of Mangalore in Karnataka. The bank has been scheduled as A1+ commercial bank by the Reserve Bank of India. The bank has a strong national presence with branches spread across 21 states of the country.
The bank is fully committed to customer-driven services and believes in treating each customer as special. The bank has always believed in innovation and aims to keep in line with the changing times and lifestyles of its customers. Karnataka Bank is one of the first banks which realized the importance of core banking solutions and implemented it in the year 2000. The bank also has a well-devised and operational Disaster Recovery Centre.
Karnataka Bank was incorporated in the year 1924 at Mangalore, a coastal city in Karnataka. The bank has functions across the whole banking spectrum offering services which include retail banking, private banking, investment banking as well as asset management.
Karnataka Bank offers fixed-income savings solutions to retail customers in the form of fixed term deposits. These deposit schemes include a host of financial products like term deposits, insurance-linked deposits, recurring deposits etc. Their features differ depending on their targeted client base. Interest and tenures on these deposits are set according to market rate movements and the bank’s fund requirements as well as in keeping with peer offerings. With competitive returns and flexibility in tenures, these schemes make for attractive and safe instruments through which depositors can maximise returns on savings.
All individuals and HUFs are eligible to apply for a fixed deposit account from Karnataka Bank. The eligibility of a depositor might change subject to bank guidelines.
Karnataka Bank offers a host of fixed deposit schemes, some of which are listed here –
This is a standard fixed deposit scheme under which you can deposit a lump-sum amount and earn interest on the same. The interest rate depends upon the tenure of the deposit and the minimum amount required as deposit is ₹ 100 and in multiple of ₹ 10 thereafter. The deposit period ranges from 7 days to 120 months. Nomination and pre-mature withdrawal facilities are available subject to bank guidelines. Loans are issued against these deposits at the sole discretion of the bank.
This is a reinvestment deposit for which the rate of interest is compounded quarterly. The minimum deposit amount is ₹ 100 and the deposit tenure is between 6 months to 120 months. Loan facility, pre-closure facility and nomination facility are available as per bank guidelines. This is a growth-oriented scheme which earns attractive returns.
These schemes come with the dual benefit of high returns coupled with tax-saving. The minimum amount to be deposited is ₹ 100 and the deposit timeframe is a fixed period of 5 years. Any individual or joint holder or minor or Hindu joint family can apply for this scheme.
This is a flexible form of fixed deposit wherein an individual can withdraw ₹ 1000 or multiples of the same when required, without affecting the interest rates on the remaining deposit amount. Soulabhya Deposit is an extremely popular deposit scheme that matches the lifestyle choices of today’s generation.
The minimum amount required to open a fixed deposit account with Karnataka Bank depends upon the type of deposit scheme availed. However, for most deposit schemes the initial investment amount is ₹ 100 and thereafter in multiples of the same.
There is no set limit on the maximum amount that can be deposited in a fixed deposit scheme of Karnataka Bank. However, in some cases the bank might issue limits as they see fit.
The minimum and maximum deposit periods on Karnataka Bank FDs are 7 days and 10 years. In between these deposit periods there are specific deposit tenures which earn special rates under bank guidelines.
Fixed Deposit accounts with Karnataka Bank can be opened online from the comforts of your home or directly by visiting any of the bank branches. An online form needs to be filled for online application while a physical application form needs to be filled in case you visit the bank branch.
Karnataka Bank offers attractive and competitive rates of interest on its fixed deposits. The minimum rate offered by the bank is 3.5% for a deposit of few days while the maximum is 8.75% for deposits that have a deposit tenure between 1-2 years.
Yes. The following two deposit schemes are specially meant for tax-saving by customers –
Yes. Like all fixed deposits, those from Karnataka Bank are also taxable and are basically split up into two categories. First is those for which the deposit holder has furnished the PAN number while the other is for which the deposit holder has not furnished the PAN number. In case the interest on the FD is equal to or more than ₹ 10,000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 10,000 and the PAN number has not been provided then a tax of 20% on the interest received is levied.
Karnataka Bank fixed deposits have some exciting features:
Yes. Loans can be sought from Karnataka Bank on deposits that are held with the bank. However, it depends on the discretion of the bank.
Yes. Karnataka Bank offers senior citizens 0.5% higher rates than standard rates.
No. Currently, credit cards from Karnataka Bank are not being offered to customers against their fixed deposits.