Karnataka Bank Senior Citizen FD Rates 2025

What is a Karnataka Bank Senior Citizen FD?

Karnataka Bank senior citizen FD is a term deposit scheme exclusively for individuals aged 60 and above. It offers higher interest rates, flexible payout options, and secure returns. These FDs are ideal for retirees looking for stable income through monthly or quarterly interest payouts, or for those who prefer cumulative returns at maturity. The minimum investment amount is ₹100, making it accessible to even modest investors. 

View the latest returns and compare Karnataka Bank FD interest rates to see how they benefit senior citizen depositors. Let’s look at the current rates, key features, and the steps to open a Karnataka Bank FD for senior citizens.

Key Benefits of Karnataka Bank Senior Citizen FD

Here are the key benefits that make Karnataka Bank Senior Citizen Fixed Deposits a reliable choice for retirees:

1. Monthly Interest Payout Without Discount:

   Unlike regular customers who may receive monthly interest at a slightly discounted rate, senior citizens enjoy monthly payouts at full applicable FD interest rates, maximising returns without any reduction.

2. Auto-Renewal Facility: 

   You can enable the auto-renewal feature, which automatically renews your FD at maturity. This is perfect for senior citizens who prefer a hands-off, long-term investment without the hassle of rebooking.

3. Premature Withdrawal: 

   Karnataka Bank allows premature withdrawal of fixed deposits, with a penalty ranging from 0.50% to 1% on the applicable interest rate, depending on the deposit amount. This offers senior citizens a financial cushion during emergencies without having to liquidate their entire investment.

4. Nomination Facility: 

   During FD creation, you can nominate a family member or legal heir. This ensures a smooth transfer of funds in case of an unforeseen event, supporting your estate planning goals.

Karnataka Bank Senior Citizen FD Rates

Karnataka Bank FD interest rates for senior citizens are listed below for deposits under ₹3 crores and between ₹3 crores to ₹10 crores, based on tenure:

Karnataka Bank Senior Citizen FD Rates (Less Than ₹3 Crores)

*Karnataka Bank FD interest rates w.e.f. June 3, 2025

Karnataka Bank Senior Citizen FD Rates (₹3 Crores to ₹10 Crores)

*Karnataka Bank FD interest rates w.e.f. June 3, 2025

How to Open a Karnataka Bank Senior Citizen FD?

Whether you prefer digital banking or in-person support, Karnataka Bank makes it easy for senior citizens to open an FD:

1. Online Method

   • Log in: Access Karnataka Bank's NetBanking portal or mobile app using your credentials to begin the FD opening process.
   • Select FD Option: Navigate to the "Deposits" section and select the specific senior citizen fixed deposit scheme.
   • Enter Details: Input your desired deposit amount, select the tenure, and choose your preferred interest payout frequency (monthly, quarterly, etc.).
   • Add Nominee & Enable Add-ons: Add a nominee for safety and enable features like auto-renewal to simplify reinvestment at maturity.
   • Transfer Funds: Use your linked bank account to transfer the chosen FD amount securely through the platform.
   • Confirmation: Receive an e-receipt instantly via your email or access it anytime through your NetBanking dashboard.

2. Offline Method

   • Visit the Branch: Go to your nearest Karnataka Bank branch to begin the process of opening a senior citizen fixed deposit account.
   • Carry Required Documents: Take along your Aadhaar card, PAN card, age proof, and recent passport-sized photographs for identity and age verification.
   • Fill Application Form: Request and complete the senior citizen FD application form with accurate personal, deposit, and nominee details.
   • Submit Deposit Amount: Deposit your chosen FD amount via cheque or request a direct transfer from your existing Karnataka Bank savings account.
   • Collect FD Certificate: Once processed, receive the official fixed deposit certificate as proof of your investment from the bank staff.

Taxation on Karnataka Bank Senior Citizen FD Interest

Interest earned on Karnataka Bank Senior Citizen FDs is classified as “Income from Other Sources” and is taxable according to the individual’s income tax slab. However, senior citizens can enjoy certain tax benefits. No TDS is deducted if the total annual interest earned is below ₹1,00,000. To avoid automatic TDS deduction even when eligible, individuals can submit Form 15H at the beginning of the financial year. Additionally, under Section 80TTB of the Income Tax Act, senior citizens can claim a deduction of up to ₹50,000 annually on interest income earned from fixed deposits.

Key Takeaways

Karnataka Bank Senior Citizen FD offers a well-rounded mix of safety, higher returns, and flexibility. With interest rates up to 7.40%, multiple payout options, and low entry barriers, it’s a smart option for those in or nearing retirement. Karnataka Bank’s Senior Citizen FD schemes are designed to meet diverse financial needs, whether you seek regular interest income or wish to securely invest your retirement savings for long-term growth.