Karnataka Bank Special FD Schemes 2025

What are Karnataka Bank Special FD Schemes 2025 ?

Karnataka Bank special fixed deposit schemes offer unique tenures and competitive interest rates compared to regular FDs. These include the 444 Days FD and 555 Days FD, providing attractive returns with flexible durations. These schemes allow depositors to align their investments with specific financial goals. With the current Karnataka Bank FD interest rates offering higher returns than standard deposits, these schemes are a good choice for those seeking customised options.

Karnataka Bank Special FD Schemes Rates

Karnataka Bank offers special fixed deposit schemes with exclusive tenures and competitive rates to suit varied investment needs. Below are the latest rates on Karnataka Bank Special FDs for deposits below ₹3 crore:

Karnataka Bank 444 Days FD Rates 2025

Karnataka Bank FD Rates w.e.f. August 1, 2025

Karnataka Bank 555 Days FD Rates 2025

Karnataka Bank FD Rates w.e.f. August 1, 2025

Key Features of Karnataka Bank Special FD Schemes

Karnataka Bank Special FD Schemes offer a range of features, including deposit requirements, withdrawal options, and additional benefits. Some of the key features are mentioned below.

• Low Minimum Deposit: The minimum deposit required for Karnataka Bank Special FD Schemes is ₹100, with higher amounts depending on the specific scheme. The deposit amount can be increased in multiples of ₹100 as per the terms of the scheme.
• Easy Liquidity: Karnataka Bank Special FD Schemes offer both callable and non-callable options. This allows investors to choose between the flexibility of early withdrawal or a fixed-term investment based on their preferences.
• Loan Facility: Under the Karnataka Bank Special FD Schemes, customers can avail themselves of an overdraft or Karnataka Bank loan against FD of up to 90% of the FD value. This allows access to funds without the need to close the deposit.
• Auto-Renewal: Karnataka Bank offers an auto-renewal facility for its special FD schemes. Upon maturity, depositors can opt to renew the FD automatically for the same tenure and prevailing interest rate, ensuring uninterrupted compounding and ease of reinvestment.

Eligibility Criteria for Karnataka Bank Special FD Schemes

The eligibility for opening Karnataka Bank Special FD Schemes includes:

• Resident individuals (single or joint)
• Senior citizens and super senior citizens
• Minors through parents or legal guardians
• Hindu Undivided Families (HUFs)
• Partnership firms and Limited Liability Partnerships (LLPs)
• Societies, associations, trusts, and companies
• Government departments at both the central and state levels

Karnataka Bank Special FD Schemes Interest Calculation Illustrations

To provide a clearer understanding of how these special deposits function, here are examples with sample calculations for various Karnataka Bank Special FD schemes:

Illustration One: Karnataka Bank 444 Days FD

The 444 Days FD is a special fixed deposit scheme offered by Karnataka Bank with a tenure of 444 days. This scheme provides a fixed investment option with a defined maturity period, offering competitive interest rates.

Suppose a general citizen invests ₹2,00,000 in this scheme for 444 days at an interest rate of 6.50%.

Simple Interest Calculation (6.50%):SI = (₹ 2,00,000 × 6.50 × 1.22) ÷ 100 = ₹15,860

Maturity Amount = ₹2,00,000 + ₹15,860 = ₹2,15,860

Compound Interest Calculation (Quarterly, 6.50%):A = ₹ 2,00,000 × (1 + 0.065 ÷ 4)^(4 × 1.22)A ≈ ₹2,15,926

Compound Interest = ₹2,15,926 – ₹2,00,000 = ₹15,926

Illustration Two: Karnataka Bank 555 Days FD 

The 555 Days FD is a special fixed deposit scheme offered by Karnataka Bank with a tenure of 555 days. It provides senior citizens with higher interest rates compared to general citizens, making it an attractive option for long-term savings.

Suppose a senior citizen invests ₹3,00,000 in this scheme for 555 days at an interest rate of 7.05%.

Simple Interest Calculation (7.05%): SI = (₹ 3,00,000 × 7.05 × 1.52) ÷ 100 = ₹32,070

Maturity Amount = ₹3,00,000 + ₹32,070 = ₹3,32,070

Compound Interest Calculation (Quarterly, 7.05%): A = ₹ 3,00,000 × (1 + 0.0705 ÷ 4)^(4 × 1.52) A ≈ ₹3,32,180

Compound Interest = ₹3,32,180 – ₹3,00,000 = ₹32,180

Note: You can use the Karnataka Bank FD interest calculator to better understand the potential maturity value and interest earned on these deposits.

Taxation on Karnataka Bank Special FD Scheme Returns

Interest earned on Karnataka Bank fixed deposits is taxable under “Income from Other Sources” and must be included in the depositor’s total income. Starting from April 1, 2025 (FY 2025-26), the TDS (Tax Deducted at Source) exemption limit on FD interest is ₹50,000 per year for non-senior citizens and ₹1,00,000 per year for senior citizens.

Key Takeaways

Karnataka Bank Special FD Schemes offer attractive interest rates, flexible tenures, and tailored benefits for different investor needs. With options like the 444 Days FD and 555 Days FD, senior citizens can enjoy higher returns. Features such as callable and non-callable options, loan facilities against FD, and premature withdrawal with penalties provide flexibility. Additionally, the tax treatment is clear, with specific TDS exemptions for senior citizens. Overall, these schemes are a solid choice for those seeking reliable and customizable investment options.