Latest Karnataka Bank FD Interest Rate April 2023
Karnataka Bank FD rates can range from 4.5% to 7.30% for the general public and 4.90% to 7.80% for senior citizens. For general FD schemes, the deposit tenure can go up to 10 years. For minor FD accounts, the tenure can be extended beyond 10 years.
Karnataka Bank offers a range of fixed deposit schemes including Tax Saver FD that can align with your investment motives and financial plans.
Karnataka Bank FD Interest Rates 2023 Highlights
| Interest Rate | 4.5% – 7.30% (general depositors) 4.5% – 7.80% (for senior citizens) |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹100 (₹5,000 for monthly interest) |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | NA ( 5-years for Tax Planner FD) |
How to Calculate Karnataka Bank FD Interest Rate?
You can calculate the maturity amount for your fixed deposit by using two methods – the simple interest method and the compound interest method. Simple interest is the interest you earn on only the principal amount at a predetermined interest rate and investment tenure. The mathematical formula to compute simple interest is as follows.
1. Karnataka Bank FD Interest Rate – Simple Interest Calculation
Simple Interest = (P*R*T)/100
Here, P is the principal amount, R stands for interest rate and T stands for tenure of investment.
Let’s understand the working of the simple interest method with an example. Let’s say you have opened a fixed deposit account with ₹2,00,000 for a tenure of 10 years for 6% per annum interest. So,
P= ₹2,00,000, T= 10 years, R= 6%
SI= (200000*6*10)/100= ₹1,20,000
Maturity value= Principal + Interest= ₹(2,00,000+1,20,000)= ₹3,20,000
2. Karnataka Bank FD Interest Rate – Compound Interest Calculation
The compound interest method involves earning interest on interest accrued. Your interest earned gets added to the principal amount which earns interest again. This cycle continues throughout the tenure generating significant returns for you.
The formula to calculate amount on maturity is as follows:
A = P (1+r/n) ^ (n * t).
Here P is the principal amount, R is the rate of interest (in decimals), T stands for the tenure of your deposit and n is the number of times interest is compounded per year.
Let’s consider the above example to calculate the compound interest of your fixed deposit. So,
P= ₹2,00,000, T= 10 years, R= 6% and n= 4 (as the amount will compound quarterly)
Now, let’s place the values in the formula mentioned above.
A = 2,00,000 (1+0.06/4) ^ (4 * 10)= ₹3,62,804
Interest Earned = A – P= ₹(3,62,804 – 2,00,000)= ₹1,62,804
However, manual calculations are complex and may leave room for errors. To make matters simpler, you can use anFD returns calculator to check your maturity and interest amount.
Factors that Affect Karnataka Bank Fixed Deposit Rate
Here are some of the factors that may affect
1. FD Tenure
Interest rates on FD deposits vary based on tenure. A long-term FD generally has a better interest rate than a short-term FD.
2. Change in RBI’s Monetary Policy
The monetary and fiscal policy along with the prevailing economic conditions of India have a significant impact on the interest rates applicable to fixed deposits.
3. Age
Senior citizens are offered 0.25% to 0.75% higher interest rate than the normal rate. Karnataka Bank offers 0.40% to 0.50% preferential rate over the normal to senior citizens.
Karnataka Bank FD Interest Rate for General Public
Karnataka Bank offers a varied range of competitive interest rates for fixed deposits below and above ₹2 crore. The interest rate also depends on the tenure of the deposit. The minimum tenure for a fixed deposit is 7 days while the maximum is 10 years. Let’s take a look at the updated Karnataka Bank FD interest rates for 2023.
| Tenure | Below ₹2 crore | Above ₹2 crore |
| 7 days to 45 days | 4.50% | 5.00% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 364 days | 5.25% | 5.25% |
| 1 year to 2 years | 7.00% | 7.00% |
| 375 days (KBL Centenary Deposit) | 7.30% | 7.30% |
| Above 2 years to 5 years | 6.50% | 6.50% |
| Above 5 years to 10 years | 5.80% | 5.80% |
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Karnataka Bank FD Interest Rate for Senior Citizens
Like most financial institutions, the Karnataka Bank FD rates for senior citizens are higher than interest rates for regular individuals. Here are the interest rates with respective tenures for senior citizens for deposits below and above ₹2 crore.
| Tenure* | Below ₹2 crore | Above ₹2 crore |
| 375 days (KBL Centenary Deposit) | 7.70% | 7.70% |
| 1 year to 2 years | 7.40% | 7.40% |
| Above 2 years to 5 years | 6.90% | 6.90% |
| Above 5 years to 10 years | 6.30% | 6.30% |
1. Karnataka FD Interest Rate for NRI
Karnataka Bank offers a range of fixed deposit schemes for NRI individuals to grow their money significantly while living outside India. The list below highlights the NRI FD accounts that Karnataka Bank has to offer.
- NRE Fixed Deposit Account
- NRO Fixed Deposit Account
- FCNR Fixed Deposit Account
- RFC Fixed Deposit Account
2. Karnataka Bank NRO FD Interest Rate
Non-Resident Ordinary (NRO) accounts allow NRI individuals to manage their income from India while residing in a foreign country. These accounts are beneficial for holding and managing income from sources like dividends, rent, and pensions. NRO depositors can earn up to 7.30% interest rate with Karnataka Bank FDs.
| Maturity tenure | Below ₹2 crore | Above ₹2 crore |
| 7 days to 45 days | 4.50% | 5.00% |
| 46 days to 90 days | 4.50% | 5.00% |
| 91 days to 364 days | 5.25% | 5.25% |
| 1 year to 2 years | 7.00% | 7.00% |
| 375 days (KBL Centenary Deposit) | 7.30% | 7.30% |
| Above 2 years to 5 years | 6.50% | 6.50% |
| Above 5 years to 10 years | 5.80% | 5.80% |
3. Karnataka Bank NRE FD Interest Rate
Non-Resident External (NRE) accounts allow NRI individuals to hold and manage earnings from other countries in Indian banks. Once you deposit the money in a foreign currency, these accounts convert the currency to Indian rupees. Let’s take a look at the Karnataka Bank FD interest rate for NRE deposits.
| Investment tenure | Below ₹2 crore | Above ₹2 crore |
| 375 days (KBL Centenary Deposit) | 7.30% | 7.30% |
| 1 year to 2 years | 7.00% | 7.00% |
| Above 2 years to 5 years | 6.50% | 6.50% |
| Above 5 years to 10 years | 5.80% | 5.80% |
4. Karnataka Bank FCNR Rates
Foreign Currency Non-Resident (FCNR) accounts are those that allow NRI individuals to hold their foreign currency deposits in India. This account lets NRI deposit their earnings in a foreign currency that can be later converted to Indian Rupee as per the prevailing exchange rates.
Here is a table showing the Karnataka Bank FCNR (B) interest rates for fixed deposits:
| Tenure | GBP | USD | EUR | AUD | CAD | CHF | HKD | SGD | JPY |
| 1 year | 3.67% | 5.25% | 1% | 2.55% | 3.35% | 0.05% | 0.33% | 0.42% | 0.15% |
| Above 1 year but less than 2 years | 3.67% | 5.25% | 1% | 2.55% | 3.35% | 0.05% | 0.33% | 0.42% | 0.15% |
| 2 years and above but less than 3 years | 3.02% | 4.65% | 1% | 2.60% | 3.35% | NA | 0.72% | 0.84% | 0.16% |
| 3 years and above but less than 4 years | 2.84% | 4.50% | 1% | 2.32% | 3.30% | NA | 0.74% | 0.78% | 0.12% |
| 4 years and above but less than 5 years | 2.82% | 4% | 0.82% | 2.44% | 3.27% | NA | 0.65% | 0.78% | 0.09% |
| 5 years only | 2.72% | 3.90% | 0.81% | 2.53% | 3.22% | NA | 0.57% | 0.78% | 0.09% |
5. Karnataka Bank RFC
Resident Foreign Currency (RFC) accounts allow Indian residents who have returned from abroad to manage their foreign income in India. NRIs returning to India can deposit earnings in various foreign currencies like British Pounds, US Dollars, Hong Kong Dollars, Euro, Japanese Yen, Australian Dollars, etc.
Here is a table comprising RFC interest rates for various currencies in Karnataka Bank.
| Tenure | GBP | USD | EUR | AUD | CAD | CHF | HKD | SGD | JPY | SEK |
| One month to less than 3 months | NIL | 0.50% | NIL | NIL | NIL | NIL | NIL | NIL | NIL | NIL |
| Three months to less than six months | NIL | 0.75% | NIL | NIL | NIL | NIL | NIL | NIL | NIL | NIL |
| Six months to less than one year | NIL | 1.00% | NIL | NIL | NIL | NIL | NIL | NIL | NIL | NIL |
| One year only | 3.67% | 5.25% | 1% | 2.55% | 3.35% | 0.15% | 0.33% | 0.42% | 0.15% | 0.15% |
| Above 1 year to less than 2 years | 3.67% | 5.25% | 1% | 2.55% | 3.35% | 0.15% | 0.33% | 0.42% | 0.15% | 0.15% |
| 2 years and above but less than 3 years | 3.02% | 4.65% | 1% | 2.60% | 3.35% | NA | 0.72% | 0.84% | 0.16% | NA |
| 3 years and above but less than 4 years | 2.84% | 4.50% | 1% | 2.32% | 3.30% | NA | 0.74% | 0.78% | 0.12% | NA |
| 4 years above but less than 5 years | 2.82% | 4% | 0.82% | 2.24% | 3.27% | NA | 0. 65% | 0.78% | 0.09% | NA |
| 5 years only | 2.72% | 3.90% | 0.81% | 2.53% | 3.22% | NA | 0.57% | 0.78% | 0.09% | NA |
Karnataka Bank VS Other Banks’ FD Interest Rate
The following table compares the interest rate of Karnataka Bank against the FDs of other banks. For the sake of simplicity, we have considered the interest rates of deposits below ₹2 crore for the general public.
| Bank Name | Tenure | Interest Rate |
| Axis Bank Fixed Deposits | 7 days – 10 years | 3.50%-8.01% |
| ICICI Bank Fixed Deposit | 7 days – 10 years | 3%-7.50% |
| HDFC Bank Fixed Deposit | 7 days – 10 days | 3%-7.10% |
| Citibank Fixed Deposit | 7 days – 10 years | 3.50%-8.01% |
| Union Bank Fixed Deposit | 7 days – 10 years | 3%-7.30% |
| Bank of Baroda Fixed Deposit | 7 days – 10 years | 3%-7.05% |
| IndusInd Fixed Deposit | 7 days- above 5 years | 3.50%-7.75% |
| SBI Fixed Deposit | 7 days- 10 years | 3%-7% |
| Bank of India Fixed Deposit | 7 days – 10 years | 3%-7.15% |
| Yes Bank Fixed Deposit | 7 days-10 years | 3.25%-7.50% |
| Deutsche Bank Fixed Deposit | 7 days – 5 years | 3%–7.75% |
| Paytm Payments Bank Fixed Deposit | 7 days – 1 year | 2.75% – 5.5% |
| Sundaram Finance Fixed Deposit | 12 months to 36 months | 7.45%-8.25% |
| IDFC Bank Fixed Deposit | 7 days-10 years | 3.50%-7.75% |
| Punjab and Sind Bank Fixed Deposit | 7 days – 10 years | 2.80%–7.60% |
| Indian Overseas Bank Fixed Deposit | 7 days-10 years | 4.30%-7.75% |
| Central Bank of India Fixed Deposit | 7 days- 10 years | 4%-6.75% |
| Bandhan Bank Fixed Deposit | 7 days- 10 years | 5%-7.70% |
| RBL Bank Fixed Deposit | 7 days- 20 years | 3.50%-7.80% |
| DBS Bank Fixed Deposit | 7 days to 5 years and above | 2.5%-8% |
| Indian Bank Fixed Deposit | 7 days- 5 years | 2.80%-6.50% |
| Federal Bank Fixed Deposit | 7 days-6 years | 3%-7.25% |
| HSBC Fixed Deposit | 7 days – 2 years | 2.85%- 7% |
| Canara Bank Fixed Deposit | 7 days- 10 years | 4%-7.25% |
| IDBI Bank Fixed Deposit | 0 days- 20 years | 3%-6.75% |
| Punjab National Bank Fixed Deposit | 7 days- 10 years | 3.50%- 7.25% |
| Kotak Mahindra Bank Fixed Deposit | 7 days – 10 years | 4%- 7.20% |
Features and Benefits of Karnataka Bank FD
Below are some of the features and benefits that you can enjoy by opting for FDs with Karnataka Bank:
- The bank offers a minimum deposit amount starting from ₹100. If you are planning to invest for 1 year only, your minimum deposit amount will be ₹5,000
- These FDs have a maturity period that ranges from 7 days to 10 years
- Individuals will receive receipts for new FDs or renewals in just one day
- You can also avail loan against a fixed deposit as per the bank’s rules
- Karnataka Bank FD rates are competitive and range from 4.5% to 7.80% (including senior citizens)
- Customers can opt for premature withdrawals as per the bank’s rules
- Senior citizens will receive a 0.5% extra interest rate for FD tenures of 5 to 10 years
Also Read
Different Types of Karnataka Bank FD Schemes
Karnataka Bank offers several fixed deposit schemes for Indian residents and NRIs. The list given below notes down the popular fixed deposit schemes that align with the customer’s needs.
- Fixed Deposit (FD)
- Soulabhya Deposit
- Tax Planner FD and Abhyudaya Cash Certificate
- Abhyudaya Cash Certificate- Term Deposit Reinvestment Plan
1. Fixed Deposit (FD)
- Minimum Deposit: ₹100
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest rate: 4.5% – 7.30%
- Eligibility Criteria: Indian Resident
2. Soulabhya Deposit
- Minimum Deposit: ₹5,000
- Maximum Deposit: No upper limit
- Tenure: 30/46 days to 3 months (minimum), 60 months or indefinitely renewed (maximum)
- Interest rate: 4.5%-7.30%
- Eligibility Criteria: Indian Resident
3. Tax Planner FD and Abhyudaya Cash Certificate
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1.5 crore
- Tenure: 5 years (minimum)
- Interest rate: 6.50% to 6.90%
- Eligibility Criteria: Indian residents
4. Abhyudaya Cash Certificate- Term Deposit Reinvestment Plan
- Minimum Deposit: ₹100
- Maximum Deposit: No upper limit
- Tenure: 6 months to 10 years
- Interest rate: 4.5% to 7.30%
- Eligibility Criteria: Indian residents
How to Invest in Karnataka Bank FD?
You can follow the steps below to apply for a fixed deposit in Karnataka Bank online.
- Step 1: Visit the official website of Karnataka Bank.
- Step 2: Log in with your credentials like your registered mobile number and password.
- Step 3: Download the application form and start filling up the important information. These include the principal amount, tenure, nominee and your signature.
- Step 4: Upload scanned copies of the required documents and complete the video KYC process.
- Step 5: Opt for net banking to process the payment.
- Step 6: Save the receipt for later use.
Documents Required to Open Karnataka Bank FD
Here is the list of documents that you require to open a fixed deposit account in Karnataka Bank.
1. General Documents
- Address proof (utility bills like telephone bills, residence agreements, ration cards or electricity bills)
- Identity proof like a passport, Aadhaar card, PAN card or driving licence
- Proper introduction
- Two passport-sized photos
2. For Companies
- Updated and current list of directors
- Scanned copy of the Certificate of Incorporation
- Memorandum and Article of Association which is duly certified and updated
- A balance sheet for the previous three years
- True extracts of Resolution certified by the Chairman and counter-signed by a Secretary or any other Authorised Officer
3. For Partnership Firms
- Partnership Deed
Eligibility to Open Karnataka Bank FD
To be eligible to open a Karnataka Bank fixed deposit, you must fulfil the following eligibility criteria.
- Indian Resident or NRI (for NRI time deposits)
- 18 years or above (minors can apply with the help of their guardian)
- Company owner
- Sole proprietorship
- A society
- Owns a joint venture or is an individual owner of a company
Taxation on Karnataka Bank FD Deposit Scheme
- The interest earned on FDs is considered as “income from other sources” and is subject to taxation as per the individual’s income tax slab.
- Banks are required to deduct TDS every year on the interest earned on FDs if the interest amount exceeds Rs.40,000 per financial year (Rs.50,000 for senior citizens).
- If an individual withdraws their FD before the maturity date, the interest earned on such premature withdrawal is also subject to taxation as per their income tax slab.
- Form 15G/15H can be submitted by the depositor for exemption from tax deduction as per IT Rules.
However, if you have a tax-saving FD account with Karnataka Bank FD scheme, you can claim tax deduction benefits of up to Rs.1.5 lakh under Section 80C of the Income Tax Act. Note that Karnataka Bank tax saving FD has a lock-in period of 5 years.
Loan Against Karnataka Bank FD Deposit Scheme
With Karnataka Bank fixed deposit schemes, you can enjoy a loan against FD. This allows you to withdraw a part of your FD without breaking the entire deposit. Karnataka Bank offers this feature with different fixed deposit schemes like Regular FD, Soulabhya Deposit Scheme, and Abhyudaya Cash Certificate Scheme. Here are a few benefits of availing a loan against a Karnataka Bank FD.
- They come with low-interest rates
- Applicable on both NRI and domestic FDs
- Flexible loan repayment period
- Even after you withdraw a part of your deposit as a loan, the remaining amount will continue to earn interest
Final Word
You can open an FD with Karnataka Bank from any part of India by visiting the nearest branch or by logging in to the official website. Before opening a fixed deposit account, consider reading the terms and conditions thoroughly to know about the rules set by this bank on fixed deposits.
Looking for other-tax saving instruments? You can consider investing in Navi ELSS Tax Saver Nifty 50 Index Fund with Navi Mutual Fund and claim tax deduction benefits of up to Rs.1.5 lakh. Download the Navi app, explore funds and start investing today.
FAQs
The minimum amount that you need to deposit in Karnataka Bank Soulabhya Deposit Scheme is ₹5,000. You can eventually increase this amount in multiples of ₹1,000.
You can close any regular FD account at any time after the minimum tenure for the respective account type gets fulfilled. However, you cannot make partial withdrawals from the Karnataka Bank Tax Saver Fixed Deposit before the completion of 5 years.
You would require these basic documents to open an FD with Karnataka Bank.
-PAN card
-Voter ID
-Senior citizen ID card
-Aadhaar card
-Driving licence
-Passport
If the interest income that you earn is exempt from taxation, you can avoid TDS deduction on your Karnataka Bank FD by instructing the bank not to deduct any TDS. For this, you must fill up Form 15G or 15H (for senior citizens).
For premature withdrawal from accounts with deposits below ₹2 crore, there is a penalty of 0.5% on the applicable rate of interest. If the deposit amount ranges from ₹2 crore to ₹10 crore, pre-closure of the account will attract a penalty of 1% on the interest rate.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
