KVB Tax Saving Deposits
KVB Tax Saving Deposits is a five-year fixed deposit from Karur Vysya Bank that offers Section 80C tax benefits up to Rs.1.5 lakh along with a fixed, assured interest rate. You can choose cumulative or non-cumulative options, with interest paid out monthly or quarterly.
Features of KVB Tax Saving Deposits
Some of the features of the KVB Tax Saving Deposits are:
- Avail tax benefits under Section 80C of the Income Tax Act
- Maximum deposit allowed is Rs.1.5 lakh
- A lock-in period of 5 years is applicable
- Monthly and quarterly interest payout option is available
- Cumulative deposit option is also available
- Nomination facility is available
- You can open a KVB Tax Saving Deposit at any Karur Vysya Bank branch using the account opening form, or apply directly through the bank's website.
Eligibility Criteria for KVB Tax Saving Deposits
- The eligibility criteria for opening an KVB Tax Saving Deposits is that the individual should be an Indian Resident.
- Karur Vysya Bank also accepts KVB Tax Saving Deposits in the name of the Karta of a Hindu Undivided Family (HUF), in addition to resident individuals.
Interest Rate for KVB Tax Saving Deposits
The interest rate for KVB Tax Saving Deposits for the general public and senior citizens is as given below:
Tenure | Interest Rate |
5 years | 6.55% |
Note: The interest rates are effective from 8 June 2026.
Summary
KVB Tax Saving Deposits gives resident individuals and HUFs a secure, five-year fixed deposit that qualifies for a Section 80C tax deduction, with a choice of cumulative or interest-payout options. It suits savers who want predictable, bank-guaranteed returns alongside a tax break. Check the interest rate table above and apply at your nearest KVB branch to get started.
FAQs on KVB Tax Saving Deposits
- What is the KVB Tax Saving Deposit scheme?
The KVB Tax Saving Deposit is a five-year fixed deposit from Karur Vysya Bank that qualifies for a tax deduction under Section 80C of the Income Tax Act. It offers both cumulative and non-cumulative interest options.
- What is the minimum deposit allowed under the KVB Tax Saving Deposit scheme?
The minimum deposit allowed under the KVB Tax Saving Deposit scheme is Rs.100, and in multiples of Rs.100 thereafter.
- What is the maximum amount I can invest in a KVB Tax Saving Deposit?
The maximum amount that can be invested in a KVB Tax Saving Deposit is Rs.1.5 lakh in a financial year, in line with the Section 80C limit.
- Can I choose between cumulative and non-cumulative options in the KVB Tax Saving Deposit?
Yes, the KVB Tax Saving Deposit offers both cumulative and non-cumulative options, and non-cumulative deposits can pay interest monthly or quarterly.
- Who is eligible to open a KVB Tax Saving Deposit?
A KVB Tax Saving Deposit can be opened by a resident individual. Karur Vysya Bank also accepts these deposits in the name of the Karta of a Hindu Undivided Family.
- Is premature closure allowed under the KVB Tax Saving Deposit?
No, premature closure is not allowed under the KVB Tax Saving Deposit because it carries a mandatory lock-in period of five years.
- Will joint account holders of the KVB Tax Saving Deposit scheme both get tax deductions?
No, tax deductions under the KVB Tax Saving Deposit scheme can only be availed by the deposit's primary or first holder.
- Can I avail a loan against a KVB Tax Saving Deposit?
No, loan facility is not available under the KVB Tax Saving Deposit scheme.
- Is TDS applicable on the KVB Tax Saving Deposit?
Yes, Tax Deducted at Source applies to the interest earned on a KVB Tax Saving Deposit, at the rates applicable under law.
- Do senior citizens get an additional interest rate on the KVB Tax Saving Deposit?
No, senior citizens earn the same interest rate as the general public under the KVB Tax Saving Deposit scheme.
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