CSB Bank FD Interest Rates 2025

What is the CSB Bank Fixed Deposit?

CSB Bank provides various fixed deposits such as normal FDs, tax savings deposits under Section 80C, and senior citizen-oriented schemes like the Acharya Deposit. Interest can be received monthly, quarterly, or at maturity, subject to the chosen scheme. This article will give you a better understanding of CSB Bank fixed deposits. 

Key Benefits of CSB Bank Fixed Deposit

Here are some of the key benefits of opening a CSB Bank FD.

• Low Minimum Deposit Requirement: You can start a CSB Bank FD with a minimum of just ₹1,000, making it accessible to small savers and first-time investors.
• Senior Citizen Benefits: Senior citizens get up to 0.50% extra interest on select schemes and enjoy higher annualised yields through the Acharya Deposit option.
• Nomination & Joint Holding: All FDs offer nomination facilities and can be opened individually, jointly, or in the name of minors (under guardianship).
• Premature Withdrawal Penalty: CSB Bank typically applies a 1% reduction in the applicable interest rate as a penalty if an FD is withdrawn before its maturity date.
• Loan & Withdrawal Options: Loans against FDs are available. The bank may levy applicable interest or charges on loans against FD.
• Sweep-In and Sweep-Out Facility: CSB Bank provides a Flexi Fixed Deposit facility with sweep-in and sweep-out features. When a customer’s savings or current account balance exceeds a defined threshold, the surplus is automatically transferred into a fixed deposit. If the balance falls below a minimum set level, funds are swept back from the FD into the account. 

CSB Bank FD Interest Rates

Below are the latest fixed deposit interest rates offered by CSB Bank for deposits below ₹3 crores. These vary based on tenure and senior citizen eligibility.

Regular Domestic Term Deposits (Below ₹ 3 Crores)

*CSB Bank FD interest rates w.e.f. May 3, 2025

CSB Tax Savings Support (5-Year Lock-in)

*CSB Bank FD interest rates w.e.f. March 1, 2025

Non-Callable Retail Deposit (13 Months)

*CSB Bank FD interest rates w.e.f. May 3, 2025

Note: Premature withdrawal is not allowed for non-callable deposits and tax-saving deposits.

How to Open a CSB Bank FD?

You can open a Fixed Deposit with CSB Bank either online (if you're an existing customer) or offline by visiting a branch. Here's a step-by-step guide for both methods:

1. Online Method

   For existing CSB Bank customers with internet banking:

   • Visit the official CSB Bank website.
   • Go to ‘Personal Banking’ → ‘Accounts’ → ‘Fixed Deposits’.
   • Click on ‘Apply e-term deposit’.
   • Log in using your net banking credentials.
   • Fill in the deposit details (amount, tenure, interest payout, nominee).
   • Enter the OTP sent to your registered mobile number.
   • Click Confirm to complete the process.

2. Offline Method

   For those who prefer visiting a branch:

   • Visit the nearest CSB Bank branch.
   • Collect and fill out the FD application form.
   • Submit ID proof (PAN, Aadhaar), a passport-size photo, and the deposit amount.
   • Collect your FD receipt and confirmation from the bank.

Documents Required for CSB Bank FD

To open a CSB Bank FD, you will need:

• PAN Card
• Aadhaar Card or a valid ID proof
• Address proof
• Passport-size photograph
• Existing account number (if applicable)

Taxation on CSB Bank FD Interest

As of FY 2025-26, interest earned on CSB Bank Fixed Deposits (FDs) is fully taxable under the heading “Income from Other Sources.” TDS is deducted at 10% if the total FD interest exceeds ₹50,000 in a financial year (₹1 lakh for senior citizens). If the investor fails to submit their PAN, TDS is deducted at 20%. To avoid unnecessary deductions, eligible individuals can submit Form 15G/15H (for senior citizens) at the start of the financial year, provided their total income is below the taxable threshold. Interest must still be reported in the income tax return. Besides, deposits under the CSB Tax Savings Support scheme (tax saver FD) are eligible for income tax deduction up to ₹1.5 lakh under Section 80C of the Income Tax Act.

Key Takeaways

CSB Bank FD interest rates are highly competitive, with interest rates of up to 7.40% for general customers and up to 7.90% for senior citizens on chosen tenors. You can invest from as little as ₹1,000 and have access to a wide range of schemes such as Acharya (senior citizen), tax-saver, and non-callable deposits. With the option of online and offline submission of forms, CSB Bank provides ease and flexibility for various categories of savers. Customers can compare the best FD interest rates and make a smart investment decision.