Karnataka Bank Recurring Deposit Interest Rates 2025

Karnataka Bank provides competitive interest rates on recurring deposits (RDs). The duration of the RDs ranges from 7 days to 10 years. The bank's rate of return ranges from 3.40% per annum to 5.70% per annum. Senior citizens receive an additional 0.40% p.a. interest rate.

Updated On - 05 Sep 2025
Check Free Credit Score

Karnataka Bank offers at attractive interest rates on Recurring Deposit (RDs). The tenure of the RDs range from between 7 days to and 10 years.

The rate of return offered by the bank is in the range of 3.50% p.a. to 7.25% p.a. Senior Citizens get an additional interest rate of 0.40% p.a.

 Latest Karnataka Bank RD Interest Rates 2025

The bank usually has separate rates for amounts of up to and including Rs.2 crore and more than Rs.2 crore to Rs.10 crore. 

The interest rates for recurring deposit accounts less than Rs.2 crore as given in the table below:

Free Credit Score

Tenure 

Interest rate (% p.a.) for deposits below Rs.3 crore 

7 days to 45 days 

3.50 

46 days to 90 days 

4.00 

91 days to 179 days 

5.25 

180 days to below 1 year 

6.75 

180 days to below 1 year 

6.75 

1 year to 2 years 

7.10 

375 days (FD & ACC) 

7.25 

Above 2 years to 5 years 

6.50 

Above 5 years to 10 years 

5.80 

Note: The interest rate mentioned in the table are effective 14 June 2024.  

The interest rates for recurring deposit accounts more than Rs.2 crore as given in the table below:

Tenure 

Interest rate (% p.a.) for deposits ₹3 crore up to Rs.5 crore 

Interest rate (% p.a.) for deposits above Rs.5 crore up to Rs.10 crore 

7 days to 45 days 

3.50 

3.50 

46 days to 90 days 

5.25 

6.00 

91 days to 179 days 

6.75 

6.75 

180 days to below 1 year 

6.75 

6.75 

180 days to below 1 year 

6.75 

6.75 

1 year to 2 years 

7.10 

7.10 

375 days (FD & ACC)* 

7.25 

7.25 

Above 2 years to 5 years 

6.50 

6.50 

Above 5 years to 10 years 

5.80 

5.80 

Note: The interest rate mentioned in the table are effective 14 June 2024.  

Karnataka Bank Short-Term RD Interest Rates

The rate of return offered by Karnataka Bank on short-term recurring deposits  Short-term RDs are those which are opened for a period that ranges between 7 days and less than a year.

Karnataka Bank Medium and Long-Term RD Interest Rates

Medium-term RDs are those which have a tenure between 1 year and up to 5 years. Karnataka bank offers interest in the range of 6.50% p.a. and 7.25% p.a. 

Karnataka Bank RD Rates for 3 Years and Above

Any RD account opened for more than 3 years is termed as long-term recurring deposits.in the range of 6.50% p.a. to 5.80% p.a. on such deposit tenures.

Karnataka Bank Senior Citizen Recurring Deposit Interest Rates

Citizens above the age of 60 years are offered additional 0.40% interest for tenure ranging between 1 year and 5 years and additional 0.50% for tenure between 5 years and 10 years. The interest rate offered ranges between 7.15%p.a. - 7.90% p.a. 

Who Can Open an RD Account?

Karnataka Bank allows both individuals as well as Hindu United Families, public and private companies, proprietary and partnership firms, societies and trusts, limited liability partnerships, and government departments to open an RD account. If you close a recurring deposit account before it matures, you may not receive the full interest amount initially promised

. Delaying in depositing money in the account every month will result in a penalty. If you do not make regular deposits but the account reaches maturity, then that account will be considered a discontinued account and the bank reserves the judgement to make a payout to you or not.

FAQs on Karnataka Bank RD Interest Rates

  • What is the minimum amount required to open a Karnataka Bank recurring deposit account?

    The minimum amount required to open an RD with Karnataka Bank is Rs.50 per month and multiples thereof.

  • What are the penalty charges if I miss paying my instalments on time?

    If you miss or are late in paying the instalments then you have to pay a penalty of Rs.1.50 per month for every Rs.100 for deposits made for less than five years. If your tenure is longer than five years then you have to pay a penalty of Rs.2 for every Rs.100. In order to calculate this penalty, a portion of a month is considered a full month. 

  • How to deposit the monthly instalment for Karnataka Bank recurring deposit?

    The monthly instalment for the Karnataka Bank RD can be remitted by means of a cheque or as cash.

  • Is loan facility available on Karnataka Bank recurring deposit?

    Yes, loan facility is available on Karnataka Bank recurring deposit as per the bank's rules.

  • How do I keep track of my Recurring Deposit in Karnataka Bank?

    You will receive a passbook for keeping track of your recurring deposits in Karnataka Bank. You can also check the details online.  

Disclaimer
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.