Overview of Karnataka Bank Fixed Deposit
Karnataka Bank Fixed Deposit lets you invest from 7 days up to 10 years with a minimum deposit of just Rs.100. You can choose monthly, quarterly, half-yearly or yearly interest payouts, with premature withdrawal, loans against the deposit and nomination facilities available. Senior citizens earn a higher rate than the regular Karnataka Bank Fixed Deposit rate.
Features of Karnataka Bank FD
The features of Karnataka Bank fixed deposit are as follows:
- 7 days to 10 years maturity period.
- Minimum deposit Rs.100.
- Periodic interest payouts - yearly, half-yearly, quarterly and monthly.
- Monthly payout interest rate is lower than others (except senior citizen).
- The interest income will be transferred to the investor's Savings Account or wired through National Electronic Fund Transfer (NEFT).
- The FD scheme allows premature withdrawals.
- Senior Citizens are entitled to an additional interest rate which is 0.25%-0.50% more than the regular rates.
- One can operate the FD as a joint account.
- Karnataka Bank offers nomination facility on this scheme.
- The interest earned will be taxed based on Tax Deducted at Source (TDS) as per the Income Tax Act, 1961.
- One can avail loans against the deposit as per the guidelines of the bank.
- In the case of deposits under Rs.3 crore, the callable FD rates lie within 3.50% p.a. and 7.50% p.a.
- Banks deduct TDS on Karnataka Bank Fixed Deposit interest only once it crosses Rs.50,000 in a financial year for regular depositors and Rs.1,00,000 for senior citizens, under Section 194A of the Income Tax Act, 1961.
- Under the KBL Tax Planner scheme, Karnataka Bank offers a fixed 5-year tax-saving deposit at 6.50% p.a. for the general public and 6.90% p.a. for senior citizens, eligible for deduction under Section 80C with a maximum investment of Rs.1.5 lakh in a financial year; premature closure is not allowed under this scheme.
Tenure | General Public (p.a.) | Senior Citizen (p.a.) |
7-45 days | 3.50% | 3.75% |
46-90 days | 4.00% | 4.25% |
91-179 days | 5.25% | 5.50% |
180 days to less than 1 year | 6.25% | 6.50% |
1 year to less than 2 years | 7.25% | 7.75% |
401 days | 7.50% | 8.00% |
2 years to less than 3 years | 6.50% | 7.00% |
3 years to less than 5 years | 6.50% | 7.00% |
5 years to 10 years | 5.80% | 6.30% |
Note: The interest rates are effective from 18 February 2025.
Documents required for Karnataka Bank Fixed Deposit:
The documents required to apply for a fixed deposit are as follows:
Identity Proof | Aadhaar card, Driving Licence, Passport, Voter's ID card, PAN Card, Ration Card |
Address proof | Aadhaar card, Telephone bill, Passport, Ration card, Electricity bill, Voter ID card |
Income proof (For salaried) |
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Income proof (For self-employed) |
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Eligibility to Open Karnataka Bank FD account
Individuals
- Indian residents
- Members of the Hindu Undivided Families
Group entities
- Sole Proprietorships
- Partnership firms
- Limited Companies
- Government units
Summary
Karnataka Bank Fixed Deposit offers flexible tenures from 7 days to 10 years with a minimum deposit of just Rs.100, and lets you choose from monthly, quarterly, half-yearly or yearly interest payouts. The scheme supports premature withdrawal, loans against the deposit, joint holding and nomination, with senior citizens earning a higher rate than the regular rate. Compare the tenure-wise Karnataka Bank Fixed Deposit rates above to pick the deposit that best matches your investment horizon.
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FAQs on Karnataka Bank Fixed Deposit Scheme
1.What is Karnataka Bank Fixed Deposit?
Karnataka Bank Fixed Deposit is a term deposit product that lets individuals and group entities invest a lump sum for a fixed tenure and earn interest at a rate set by the bank. It offers flexible payout options along with facilities such as premature withdrawal and loans against the deposit. Karnataka Bank revises its Fixed Deposit rates periodically.
2.What is the tenure range for Karnataka Bank Fixed Deposit?
Karnataka Bank Fixed Deposit tenures range from 7 days to 10 years. You can choose a tenure that matches your investment goal, from short-term parking of funds to long-term savings.
3.What is the minimum deposit amount for Karnataka Bank Fixed Deposit?
You can open a Karnataka Bank Fixed Deposit with a minimum deposit of just Rs.100. There is no upper limit on how much you can invest.
4.What interest payout options are available on Karnataka Bank Fixed Deposit?
Karnataka Bank Fixed Deposit offers monthly, quarterly, half-yearly and yearly interest payout options. The monthly payout is offered at a discounted rate for regular depositors, while senior citizens receive the monthly payout without any discount.
5.Can I withdraw my Karnataka Bank Fixed Deposit before maturity?
Yes, Karnataka Bank Fixed Deposit allows premature withdrawal, subject to the bank's applicable terms. This gives you access to your funds in case of an emergency, though it may affect the interest earned.
6.Can I take a loan against my Karnataka Bank Fixed Deposit?
Yes, Karnataka Bank allows you to avail a loan against your Fixed Deposit as per the bank's guidelines. This lets you meet short-term fund requirements without breaking your deposit.
7.Do senior citizens get a higher interest rate on Karnataka Bank Fixed Deposit?
Yes, senior citizens are eligible for an additional interest rate over the regular Karnataka Bank Fixed Deposit rate, as shown in the rate table above. The exact additional rate depends on the tenure chosen.
8.Can I open a Karnataka Bank Fixed Deposit as a joint account?
Yes, Karnataka Bank Fixed Deposit can be opened and operated as a joint account. The bank also offers a nomination facility on this scheme.
9. Is TDS applicable on Karnataka Bank Fixed Deposit interest?
Yes, interest earned on Karnataka Bank Fixed Deposit is subject to Tax Deducted at Source (TDS) as per the Income Tax Act, 1961, once it crosses the threshold prescribed for the financial year. You can submit Form 15G or 15H, where eligible, to avoid TDS deduction.
10.What is the Karnataka Bank Tax Planner scheme?
The Karnataka Bank Tax Planner is a fixed 5-year tax-saving Fixed Deposit scheme that qualifies for deduction under Section 80C of the Income Tax Act. Premature closure is not allowed under this scheme.
11.What documents are required to open a Karnataka Bank Fixed Deposit?
You need identity proof, address proof and income proof to open a Karnataka Bank Fixed Deposit, such as an Aadhaar card, PAN card, passport or driving licence along with recent bank statements. Salaried and self-employed applicants may need to submit slightly different income documents.
12.Who is eligible to open a Karnataka Bank Fixed Deposit?
Indian residents and members of Hindu Undivided Families can open a Karnataka Bank Fixed Deposit as individuals. Sole proprietorships, partnership firms, limited companies and government units can also open a Fixed Deposit as group entities.
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