Karur Vysya Bank Recurring Deposit (RD)

KVB Manimala is the monthly recurring deposit scheme offered by Karur Vysya Bank. It provides people with the flexibility of investing a fixed amount of money every month, instead of depositing a lump sum amount of money.

It is ideal for those who want to save some money for a rainy day and also earn some interest in the process.

Features and Benefits of Karur Vysya Bank's Recurring Deposit

1. The minimum amount that has to be invested on a monthly basis is Rs 100 and after that, the customers can invest in multiples of Rs 25.
2. The interest earned on the deposit amount will not be subjected to TDS.
3. The account holders can opt for the nomination facility if they want to nominate someone to receive the deposit amount in the unfortunate event of their death.
4. The minimum tenure for the recurring deposit is 6 months and the maximum is 120 months or 10 years.
5. The tenure chosen has to be in multiples of 3 after the initial tenure of 6 months.
6. The monthly instalment amount or the number of monthly instalments specified while opening the account cannot be altered afterwards.
7. The account holders can opt for withdrawing the deposit amount prematurely by adhering to the applicable guidelines.
8. The account holders can avail a loan on the recurring deposit amount and the loan amount will depend on the total amount deposited.

Eligibility and Documents Required for Karur Vysya Bank Recurring Deposit

A Recurring Deposit account with Karur Vysya Bank can be opened by:

1. Individuals in their name
2. One individual jointly with another
3. A minor through his/her parents or guardians
4. Partnership Firms
5. Sole Proprietorships
6. Companies
7. HUFs
8. Associations, Societies, Clubs etc.
   

The documents required for opening a Karur Vysya Bank Recurring Deposit Account are as follows:

1. Term Deposit Account Opening Form
2. 2 copies of photographs
3. KYC documents
4. PAN Card, Form 60 or Form 61
5. Other documents as specified by the bank

Interest Rates Offered On Karur Vysya Bank Recurring Deposit

The Interest Rates offered by the Karur Vysya Bank on term deposits below Rs 1 crore ranges from 8.50%, for a period of 6 - 9 months, to 8.90%, for a period of 2 - 3 years. The rates are applicable to both fresh deposits and renewals. The information about interest rates offered for deposits above Rs 1 crore can be obtained from any of the branches of Karur Vysya Bank. For senior citizens, 9.25% for 1-2 years, and up to 9.4% for 2-5 years.

Penalty for Premature Withdrawals and Payment Delays

In case of premature withdrawal of the deposit amount, a penalty of 1% is levied on the applicable rate of interest for recurring deposits of up to Rs 1 crore. For deposits above Rs 1 crore, other pre-closure penalty norms are applicable on the deposit amount. For late payment of instalment, a penalty of Rs 1.50 per Rs 100 is levied for deposits of 5 years or below. For deposits above 5 years, the late payment penalty is Rs 2 per Rs 200.

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