Kerala Treasury FD Interest Rates 2026

If you are new to investing and want a safe avenue to grow your savings without the volatility of stocks or mutual funds, a fixed deposit could be the perfect choice. 

The Kerala Treasury Fixed Deposit offers a secure way to earn steady returns while keeping your principal safe. 

Before locking in your funds, it is wise to check the Kerala Treasury FD interest rates for 2026 so you can make an informed decision that maximises your long-term gains.

Kerala Treasury Fixed Deposit Rates for General and Senior Citizens

The Department of Treasuries operates the Kerala Treasury Fixed Deposit. These deposits are backed by the Government of Kerala, which makes them one of the most secure, risk-free savings options available in the state.

The Kerala State Treasury FD interest rates for 2026 vary depending on the chosen tenure. The rates remain the same for both general depositors and senior citizens, which offer consistent returns across tenures. The FD interest rates range from 5.4% to 7.5%.

If you prefer a fully digital and fast FD booking experience with competitive returns, you can explore FDs on the Stable Money app. The entire process is 100% digital, which makes it a convenient option for everyone.

Term-Wise Kerala Treasury Fixed Deposit Rates

Understanding each tenure in detail helps you match your financial goals with the right investment horizon. The Kerala Treasury has categorised Fixed Deposit periods in a simple, linear structure so that investors can choose easily.

1. Short-Term Deposits

Short-term Kerala Treasury FDs are ideal when you want predictable returns without locking your money for too long. The tenures usually range from 46 to 180 days and offer interest rates between 5.4% and 5.9%.

1. Medium-Term Deposits

Medium-term deposits suit savers who want a balance between stability and moderately better returns. Tenures between 181 and 365 days currently earn 6%. It makes them suitable for annual financial goals or emergency fund planning.

1. Long-Term Deposits

Long-term Kerala Treasury Fixed Deposits offer the highest returns. For tenures of one to two years, the interest rate stands at 7% to 7.5%. These deposits are ideal if you are building long-term savings or planning future expenses.

Benefits of Kerala Treasury Fixed Deposit Rates

Before investing, here are some of the advantages of Kerala Treasury Fixed Deposit you must know:

• Government Safety: Since the state government manages the Treasury, your money stays fully protected.
• Monthly Interest Credit: Fixed deposit interest can be credited directly to your TSB (Treasury Savings Bank) account every month.
• Simple Procedures: Treasury FD applications are straightforward and simple.

Tax on Kerala Treasury Fixed Deposit Interest

Under the new tax regime, the interest you earn from Kerala Treasury Fixed Deposits is fully taxable. It is added to your total income and taxed according to the slab rate that applies to you. Unlike the older tax provisions, the new regime does not offer deductions for FD investments, so the entire interest amount is considered taxable income.

Kerala Treasury Bank FD Calculator

A Kerala Treasury FD interest rates calculator helps you estimate how much your deposit will grow by the end of the tenure. You only need to enter your investment amount, the applicable interest rate and the period of the FD. The calculator then shows your maturity value instantly.

Here is an example for a better understanding: 

Suppose you invest ₹1,00,000 for 3 years at an interest rate of 7.5%. Using an FD calculator, you will see that your amount grows to approximately ₹1,24,972 at maturity. This quick calculation helps you compare different tenures and decide which option best suits your financial goals.

Why Should You Book an FD with Stable Money?

If you want a simpler and more convenient way to invest in safe fixed deposits, Stable Money brings several advantages that make the process easier and more rewarding. 

Here are a few reasons why more than 30 lakh Indians prefer using the platform:

• Fully Digital FD Booking: You can compare banks, choose your preferred tenure and complete the entire FD booking process online without visiting any branch.
• Access to High-Return FDs: Stable Money lists fixed deposits from trusted banks and NBFCs to help you find competitive rates in one place.
• Safe and Transparent Experience: Every issuer on the platform is verified, which ensures that your investment journey stays secure.

If you prefer exploring multiple FD options, the Stable Money app allows you to compare rates and book an FD online within minutes!