Karnataka Bank FD Interest Rates 2025

What is the Karnataka Bank Fixed Deposit?

Karnataka Bank FD is a fixed deposit product that allows you to invest a specific sum of money for a tenure of your choice and earn guaranteed interest. Karnataka Bank offers tenures of 7 days to 120 months with payout frequencies of monthly, quarterly, half-yearly, or annually. Individuals, senior citizens, minors, and HUFs can opt for these FDs. Karnataka Bank's Abhyudaya Cash Certificate (ACC) scheme offers interests up to 7.5% with tenures ranging from 6 months to 120 months. This article covers all the details about Karnataka Bank Fixed Deposits, including their features, current interest rates, and application procedures.

Key Benefits of Karnataka Bank Fixed Deposit

Here are some of the key benefits of a Karnataka Bank FD.

• Wide Range of Tenures: You can open an FD for any period from 7 days up to 10 years, making it flexible for both short- and long-term savings.
• Start with Just ₹100: The bank allows you to open an FD with a deposit as low as ₹100, which makes it accessible to almost everyone.
• Multiple Interest Payout Options: You can choose to receive interest quarterly, half-yearly, yearly, or monthly (at a discounted rate). This gives you flexibility in managing your income.
• Senior Citizen Privileges: Senior citizens get 0.40% extra interest and can opt for monthly interest payouts without any reduction in the payout amount.
• Nomination Facility: You can nominate a beneficiary to receive the deposit in case of your absence, ensuring peace of mind.
• Premature Penalty: For premature withdrawal of callable deposits, a penalty of 0.50% applies for amounts below ₹2 crore, and 1.00% for ₹2–25 crore; no penalty for deposits above ₹25 crore. No penalty is charged for death claim splits (if tenure and amount remain unchanged) or NRE to RFC conversions.
• Auto-Renewal Option: Your fixed deposit can be set to renew automatically upon maturity at the prevailing interest rate, ensuring uninterrupted growth.
• Soulabhya Flexi Deposit Scheme: This scheme allows partial withdrawals in multiples of ₹1,000 without breaking the entire deposit. It offers two options:
  • Option 1: Initial deposit for 46/30 days, automatically renewed in blocks of 46/30 days. Withdrawals before 30 days do not earn interest.
  • Option 2: Deposit tenure ranging from 3 months to 5 years, with quarterly interest payouts.

Karnataka Bank FD Interest Rates

Below are the latest Karnataka Bank rates for different categories:

 Domestic/NRO Callable Term Deposits – General Public

*Karnataka Bank FD interest rates w.e.f. May 2, 2025.

 DOMESTIC/NRO/NRE Non-Callable Term Deposits

*Karnataka Bank FD interest rates w.e.f. May 2, 2025.

*Karnataka Bank FD interest rates w.e.f. May 2, 2025.

Domestic Callable Term Deposits – Senior Citizens (FD & ACC only)

*Karnataka Bank FD interest rates w.e.f. May 2, 2025. ACC is ‘Abhyudaya Cash Certificate’ from Karnataka Bank.

Minor Deposit Scheme

*Karnataka Bank FD interest rates w.e.f. May 2, 2025.

 Karnataka Bank Tax Planner Scheme

*Karnataka Bank FD interest rates w.e.f. May 2, 2025.

Note: The term is fixed for 5 years. Customers can get the benefits of tax-saving FDs under Section 80C. A maximum of ₹1.5 lakh can be deposited per year. Premature closure is not permitted.

How to Open a Karnataka Bank FD?

You can open a Karnataka Bank FD online or offline.

1. Online Method

   For existing Karnataka Bank customers with internet or mobile banking:

   • Access your account and navigate to the "Digital Banking" section.
   • Choose “Internet Banking” followed by “Online Fixed Deposit (FD/ACC/RD)”.
   • Select "Apply Now" and complete your personal and deposit information.
   • Please input the one-time password (OTP) issued to your registered mobile number.
   • Select "Confirm." A bank representative will get out to you to finalise the procedure.

2. Offline Method

   For those who prefer visiting a branch:

   • Visit the nearest Karnataka Bank branch.
   • Collect the FD application form.
   • Fill in your details and attach the required documents.
   • Submit the form and deposit the amount.
   • Collect your FD receipt from the branch.

Documents Required for Karnataka Bank FD

To open a Karnataka Bank FD, the following documents are generally required:

• PAN Card
• Aadhaar Card or other valid ID proof
• Address Proof (if different from Aadhaar)
• Passport-size photograph
• Existing savings account details (if applicable)

Taxation on Karnataka Bank FD Interest

Interest income from Karnataka Bank Fixed Deposits is subject to tax under the category “Income from Other Sources.” If the total annual interest exceeds ₹50,000 for non-senior citizens or ₹1,00,000 for senior citizens, TDS is applicable. The deduction is made at 10% when a valid PAN is provided; without PAN, the rate increases to 20%. To prevent TDS, eligible customers may submit Form 15G or 15H at the beginning of the financial year, depending on their age and income criteria.

Key Takeaways

Karnataka Bank offers FD interest rates of up to 7.80% for senior citizens on select schemes and tenures. With a low minimum deposit requirement of just ₹100 and multiple interest payout options, the bank provides flexibility to suit different types of savers. Fixed Deposits can be opened both online and offline with minimal documentation. Additional features such as nomination, pre-closure (for callable FDs), and an overdraft facility against the FD make it a convenient and versatile savings option. Customers can compare the best FD rates offered by different banks to make informed investment decisions.