Karnataka Bank Recurring Deposit 2025
Karnataka Bank was founded in the year 1924 in the coastal city of Mangalore. Designated by the Reserve Bank of India as an A1+- class bank, Karnataka Bank has over 678 branches and 1000 ATMs currently.
Karnataka Bank caters to the banking needs of people by providing a comprehensive range of exclusive financial products and services. Facilities like borrowing, deposits, business banking and money transfer services are provided to the customers with a high standard of professionalism.
Karnataka Bank’s deposit products will help you maximize returns on your investments and increase your assets.
Recurring Deposit from Karnataka Bank
Karnataka Bank recurring deposit requires a fixed amount to be contributed monthly for a period ranging from 6 months to 10 years. Based on the interest accumulated over the investment period, the maturity value is calculated.
You can save a fixed amount for future plans such as buying a vehicle, buying a home, education or holidays comfortably by only setting aside a pre-determined amount every month.
Karnataka Bank Recurring Deposit Interest Rates
For Deposits up to and inclusive of Rs.1 crore
- For periods ranging from 6 months to 10 years, interest rate per annum ranges from 8.25% to 8.50% depending on the maturity pattern.
For Deposits above Rs.1 crore to Rs.10 Crore
- The interest rate per annum varies from 8.25% to 8.50% depending on the deposit period which ranges from 6 months to 10 years.
Senior Citizen Benefits
- For deposits up to and inclusive of Rs.3 crores, senior citizens are offered an additional interest of 0.50% over the general rate.
Do enquire with the bank to find out more about prevailing interest rates for the selected tenure.
Premature Closure Charges for Karnataka Bank Recurring Deposit (RD)
For Deposits below Rs.1 crore
- No penalty is levied for premature closure of deposits below Rs.1 crore.
For Deposits of Rs.1 crore and above
- For single rupee term deposits of Rs.1 crore and above, a penalty of 1% on applicable interest rate is levied. Applicable interest rate refers to the interest rate applicable for the tenure that the deposit has remained with the bank or the contracted rate, whichever is less.
- If the deposit is closed for reinvestment, interest rate applicable to the period for which the deposit has remained with the bank, without penalty, shall be paid for the amount reinvested. The reinvested deposit should remain with the bank for a period longer than that of the original deposit.
Do make an enquiry with Karnataka bank or visit the online portal for more information on premature closure charges.
In conclusion, why look elsewhere when you have the best option for investment? With customer-centric benefits like ease of opening an account, attractive interest rates and flexible monthly deposit options, Karnataka Bank recurring deposits will help you save to achieve your financial aspirations sooner than you have expected.
FAQs on Karnataka Bank Recurring Deposit
- What is the minimum tenure to open an RD account with Karnataka Bank?
Karnataka Bank provides multiple tenures that range from six months to 10 years on recurring deposits.
- What are the interest rates offered on Karnataka Bank recurring deposits?
The interest rates offered on Karnataka Bank recurring deposits range between 5.25% p.a. and 7.20% p.a.
- Are senior citizens eligible for extra interest rate benefits?
Yes, senior citizens are eligible for extra interest rate benefits on tenures of one year and above.
- Will I get a passbook on opening a recurring deposit with Karnataka Bank?
Yes, you will receive a passbook on opening a recurring deposit with Karnataka Bank.
- Am I allowed to add nominees to my recurring deposit account?
Yes, Karnataka Bank provides the option of adding nominees to recurring deposits.
- What is the minimum amount required to open a recurring deposit with Karnataka Bank?
Karnataka Bank allows you to open a recurring deposit with a minimum amount of Rs.50.
- What if I fail to pay an RD instalment?
If you do not pay an RD instalment, you will have to pay a penalty.
- Can I avail a loan against my recurring deposit?
Yes, Karnataka Bank offers the option of availing a loan against a recurring deposit.
- Is premature withdrawal of a recurring deposit allowed?
Yes, premature withdrawal of a recurring deposit is allowed.
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