Karnataka Bank was incorporated on February 18, 1924 in Mangaluru. It is one of the leading A-Class Bank Scheduled Commercial Banks in India. Over time, Karnataka Bank expanded itself, forming mergers with Chitradurga Bank, Shringeri Sharada Bank and Bank of Karnataka. 9 decades after its inception, Karnataka Bank hosts 901 branches across 22 states and 2 Union Territories.
Karnataka Bank helps its customers grow their finances in the long run by offering several fixed deposit schemes. Here are the essential details for Karnataka Bank FD rates and other terms.
| Minimum Deposit | ₹100 |
| Maximum Deposit | No upper limit specified |
| Minimum Tenure | 7 days, 1 year for senior citizens |
| Maximum Tenure | 10 years |
| Interest Rates | 4.50% to 7.30% p.a. (for the general public for FDs below ₹2 crores) 6.30% to 7.70% p.a. (for senior citizens) |
| Lock-in Period | 5 years for Tax Planner Fixed Deposit |
| Senior Citizen | 6.30% to 7.70% p.a. |
| General Citizen | 4.50% to 7.30% p.a. |
Karnataka Bank FD Rates – February 2024
| Tenure | General Citizen | Senior Citizen |
|---|
Features and Benefits of Karnataka Bank FD
On availing of Karnataka Bank FD, you can enjoy the following features and benefits along with competitive Karnataka Bank fixed deposit rates.
- The minimum amount for opening an FD with Karnataka Bank is only ₹100.
- For monthly payouts, the minimum amount to open a deposit is ₹5000, while the minimum tenure is 1 year.
- There is no discount on senior citizen interest rates of Karnataka Bank FDs.
- The bank offers a flexible tenure from 7 days to 10 years.
- You can get loans against fixed deposits as per Karnataka Bank’s policy.
- Premature withdrawals of FD are also available for Karnataka Bank’s customers.
How to Book a Karnataka Bank FD?
Using its online banking portal, you can apply to Karnataka Bank to grow your income with KTK Bank FD interest rates. You can also physically visit the nearest Karnataka Bank branch to apply for a fixed deposit.
Online Mode
The online application process for Karnataka Bank Fixed Deposit is as follows.
- Step 1: Visit the official website of Karnataka Bank.
- Step 2: Search the Log In option and enter your credentials, including phone number and password, to sign in to your account.
- Step 3: Locate the FD Application Form and fill it up by entering all the essential details. This might include your name, nominee’s name, principal amount, maturity period and signature.
- Step 4: Upload soft copies of all the necessary documents and follow the steps for Video KYC.
- Step 5: Choose the Net Banking option to complete the payment.
- Step 6: You will receive a receipt after completing the payment process. Store this receipt for tracking and verification purposes.
Offline Mode
Alternatively, you can visit the nearest Karnataka Bank branch to your location to get ahold of the form. In the same form, fill in the important details and submit it to the bank official. You must also submit the required documents to the respective bank official to process your application.
Documents Required to Open a Karnataka Bank FD
You must submit the following documents to book a fixed deposit at Karnataka Bank:
- FD application form
- PAN card
- Address proof – Passport, PAN card, driver’s license, Aadhaar card, voter ID card and utility bills
- Proof of identity – PAN card, voter ID card, Aadhaar card, driving license, passport
- Age proof – Birth certificate, school passing/graduation certificate.
- passport-size photographs
- Bank account details – account number, IFSC code, and branch name.
Eligibility to Open a Karnataka Bank FD
If you belong to the following categories of depositors, you are eligible to start a Karnataka Bank Fixed Deposit.
- Applicant type: Residents of India, HUFs, Government units, Partnership firms, Limited companies, Sole proprietorship.
- Age (in case of individual applicants): Has to be 18 years or more of age.
Types of Karnataka Bank FD
Karnataka Bank offers the following types of fixed deposit schemes. Here is a detailed overview of the terms and fixed deposit interest rates of Karnataka Bank:
1. Fixed Deposits
The regular scheme is beneficial for customers who wish to earn periodic income from the current Karnataka Bank FD rates. As a customer, you can choose between quarterly, monthly, half-yearly or annual payouts while starting the fixed deposit. Monthly interest carries no discount for senior citizens under this scheme.
- Minimum Deposit: ₹100
- Maximum Deposit: No upper limit specified
- Tenure: 7 days to 10 years
- Interest Rate: 4.50% to 7.30% per annum for general depositors and 6.30% to 7.70% per annum for senior citizens
- Eligibility: Indian citizens, companies, trusts, HUFs, etc.
2. Abhyudaya Cash Certificate
Investors who are not interested in earning periodic returns frequently can open FD with an Abhyudaya Cash Certificate. This scheme offers a lump sum amount after a particular period. However, you must keep in mind that this scheme does not allow premature account closure. On attempting to do so, you have to pay a penalty charge.
Furthermore, in case a senior citizen account holder dies before maturity, Karnataka Bank will pay the contracted rate until maturity. Individuals and sole proprietorship owners can choose a nominee for their Abhyudaya Cash Certificate FD scheme.
- Minimum Deposit: ₹100
- Maximum Deposit: No upper limit specified
- Tenure: 6 months to 10 years
- Interest Rate: 4.50% to 7.30% p.a. for the general public and 6.30% to 7.70% p.a. for senior citizens
- Eligibility: Indian citizens
3. Tax Planner
With this FD, you can enjoy the dual benefits of tax exemption and substantial returns from the KTK Bank interest rates. Furthermore, under the Tax Planner scheme, you get to start your investment with any amount up to ₹1.5 lakhs annually. This scheme is available for both Fixed Deposit and Abhyudaya Scheme account holders.
For the Karnataka Bank Tax Planner FD, customers will receive interest every month or every quarter. Karnataka Bank will pay interest at discounted rates as per domestic FD interest rates for monthly interest payments.
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1.5 lakhs
- Tenure: 5 years
- Interest Rate: 6.50% p.a. for the general public and 6.90% p.a. for senior citizens
- Eligibility: Indian citizens and HUFs
4. Soulabhya Deposit
This scheme offers twin benefits of substantial returns and an easy cash withdrawal facility in case of emergency. Soulabhya Deposit offers two options for customers to open a fixed deposit.
Under the first option, for every renewal, the rate of interest will be the present interest rate on the renewal date. Furthermore, this option allows you to make withdrawals in terms of ₹1000 any time after your FD starts. If you withdraw funds before 30 days, Karnataka Bank will not calculate any interest on the withdrawn amount.
There is another option, wherein the minimum period for FD is 3 months while the maximum period is 5 years. Here, interest compounds quarterly and gets added up to your principal amount every quarter. Under this option, a depositor can withdraw in units of ₹1000 before the tenure ends.
- Minimum Deposit: ₹5000
- Maximum Deposit: No upper limit specified
- Tenure: 3 months to 5 years
- Interest Rate: 5.25% to 7.30% p.a. for the general public and 6.30% to 7.70% p.a. for senior citizens
- Eligibility: Indian citizens
Now that you know about the Karnataka Bank fixed deposit interest rates for different schemes, it will be easy for you to decide on the most suitable option. To have a clearer idea, consider knowing the state of your present finances. This allows you to be a better judge of which scheme aligns with your finances.
It is also important to consider that you can enjoy a premature withdrawal feature with Karnataka Bank. However, this does not apply to tax-saving fixed deposit schemes. If your FD is above ₹2 crores, Karnataka Bank will charge a penalty fee of 1% on your earned interest for early withdrawals.
