Karnataka Bank FD Interest Rates 2025

Top Guaranteed Return Plans 

The guaranteed plans can give you assured returns on your fixed deposit with life insurance as a special scheme attached to it. Such plans are an appropriate choice for risk-averse investors because they do not depend on the market conditions.

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. 

Information About FDs & Other Options

When choosing an investment, it's important to understand the distinctions between options. Fixed deposits offer guaranteed returns and security, while other products, such as guaranteed return plans and mutual funds, can provide growth opportunities with different degrees of risk.

Key Highlights 

Latest Updates on Karnataka Bank FD Rates 

Karnataka Bank was among nine banks that revised their fixed deposit (FD) interest rates during the week ending August 2, 2025, aligning with the RBI’s recently reduced repo rate of 5.50%

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. 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 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.

Karnataka Bank FD Interest Rates

Below are the latest Karnataka Bank rates for different categories:

1. Domestic/NRO Callable Term Deposits (Less than Rs 3 crores)

*Karnataka Bank FD interest rates w.e.f. from August 1, 2025

2. Domestic/NRO Callable Term Deposits (above Rs 3 crore to Rs 5 crore)

*Karnataka Bank FD interest rates w.e.f. from August 1, 2025

Types of Karnataka Bank FD Schemes 

1.  Abhyudaya Cash Certificate (ACC) 

   The Abhyudaya Cash Certificate (ACC) is a reinvestment deposit scheme where the interest is compounded quarterly. This means the interest you earn is added back to your principal amount every three months, allowing your savings to grow faster over time. 

   Benefits:

   • Compounding Interest: Quarterly basis
   • Flexible Tenure: 6 months to 10 years
   • Loan Facility: You can avail of a loan against your deposit
   • Low Minimum Deposit: Rs 100

2.  Soulabhya Deposit (Flexi Deposit Scheme) 

   The Soulabhya Deposit, also known as the "Twin Gain" scheme, is a flexible fixed deposit that combines the high returns of a fixed deposit with the liquidity of a savings account. It allows you to withdraw money in units of ₹1,000 whenever you need it.

   Benefits:

   • High Liquidity: You can withdraw funds in multiples of Rs 1,000
   • Dual Options: You can choose between a short-term plan with automatic renewals or a long-term plan.
   • Partial Withdrawal: The interest on the remaining amount continues at the contracted rate.
   • Loan Facility: Loans are available against the deposit.

3. Tax Planner – Fixed Deposit 

   The Tax Planner Fixed Deposit is a scheme specifically designed to help you save on your income tax while earning a good return on your investment. It is a tax-saving fixed deposit that provides exemptions under Section 80C of the Income Tax Act, 1961. 

   Benefits:

   • Tax Exemption: Deduction of up to ₹1.5 lakh under Section 80C
   • Fixed Tenure: Lock-in period of 5 years
   • High Returns: The scheme offers competitive interest rates.
   • Nomination Facility: You can nominate a beneficiary

4.  Karnataka Bank Regular Fixed Deposit 

   The Karnataka Bank Regular Fixed Deposit is a versatile savings scheme that allows you to deposit a lump sum for a fixed period to earn a steady return. It offers flexibility in terms of deposit amount, tenure, and interest payout frequency, catering to various financial needs. 

   • Tenure - 7 days to 10 years 
   • Minimum Deposit Amount - Rs 100
   • Interest Payout Options - quarterly, half-yearly, or yearly basis
   • Loan Facility - Available 
   • Nomination Facility - Yes, allowed 

How to Open a Karnataka Bank FD?

You can open a Karnataka Bank FD online or offline.

Online Method

For existing Karnataka Bank customers with internet or mobile banking:

• Log in to NetBanking - Log in to your NetBanking account and go to the 
• Click on "Digital Banking" - Now go to the “Digital Banking” section
• Choose “Internet Banking” -  Click on the Internet Banking, followed by “Online Fixed Deposit”
• Select "Apply Now" - Click on Apply Now and complete your information
• Enter OTP - Enter the OTP that appeared on your mobile number
• Select "Confirm." - After confirming, a bank representative will get out to you to finalise the procedure.

Offline Method

For those who prefer visiting a branch:

• Head to the Branch - Visit the nearest Karnataka Bank branch.
• Ask for the Form - Collect the FD application form.
• Fill up the Form - Fill in your details and attach the required documents.
• Submit - Submit the form and deposit the amount.
• Collect Receipt - Collect your FD receipt from the branch.

Eligibility Criteria 

Below mentioned are the eligible employees and the institutions that are eligible for the Karnataka Bank FD - 

• Indian residents
• Partnership firms
• Government units
• HUFs
• Limited companies
• Sole proprietorship

Key Takeaways

Karnataka Bank offers FD interest rates of 3.50% to 6.65% per annum for the general citizens and from 3.75 to 7.05% per annum for the 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. Customers can compare the best FD rates offered by different banks to make informed investment decisions.