Karnataka Bank offers Recurring Deposits (RDs) at attractive interest rates. The tenure of RDs range from 6 months to 10 years. You can open RDs with interest rates ranging from 6.20% to 6.90% p.a. Senior Citizens get an additional interest rate of 0.40%.
Karnataka Bank Recurring Deposit Rates
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. Currently, the rates offered for both the segments is the same. The interest rates for recurring deposit accounts are as given in the table below:
|Tenure||Interest Rate p.a. (General Public)||Interest Rate p.a. (Senior Citizens)|
|7 to 45 days||3.50%|
|46 to 90 days||5.00%|
|91 to 364 days||6.25%|
|1 to 2 Years||6.90%|
|2 to 5 years||6.80%|
|5 to 10 years||6.50%|
Karnataka Bank Short-Term RD Interest Rates
Karnataka Bank offers short-term RDs with tenures ranging from 6 months to 12 months.
- For Recurring Deposit Amounts of up to Rs.2 crore
- For Recurring Deposits Above Rs.2 crore and up to Rs.10 crore
The interest rate offered for a Karnataka Bank RD with tenures ranging from 6 months to less than a year is 6.25%. For RDs with a tenure of 1 year to 2 years is 6.90%.
The interest rate offered for RDs with tenures ranging from 6 months to less than a year is 6.25%. For RDs with a tenure starting from 1 year to up to 2 years is 6.90%.
Karnataka Bank Medium and Long-Term RD Interest Rates
Karnataka Bank offers mid-term RDs with tenures ranging from 2 years and up to 10 years. The interest rate for RDs with a tenure of 2 years to 5 years is 6.80% and for 5 years to 10 years is 6.50%.
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.
More you need to know about Recurring Deposit
- Compare RD Interest Rate of Karnataka Bank with Other Banks and Institutions
- Check Features and Schemes of Karnataka Bank Recurring Deposit