Karur Vysya Bank FD Interest Rates 2025

What is the Karur Vysya Bank Fixed Deposit?

A Karur Vysya Bank (KVB) FD is an investment option where you can deposit a fixed amount of money for a predefined tenure and earn guaranteed interest. KVB provides easy access to the fund through premature withdrawal and loan facilities. The lower limit of the deposit amount is ₹100. Individuals, HUFs, trusts, partnership firms, companies, and associations can book an FD at Karur Vysya Bank. This article describes the features, advantages, and the latest Karur Vysya Bank FD rates.

Key Benefits of Karur Vysya Bank Fixed Deposit

Here are the major benefits of opening a Karur Vysya Bank FD, explained in simple terms:

• Flexible Tenures: You can open an FD for any duration between 7 days and 10 years, making it suitable for both short-term and long-term savings.
• Low Minimum Deposit: You can start a fixed deposit with just ₹100, which makes the product accessible for most individuals and low-income depositors.
• Regular Interest Payout Options: The bank offers monthly, quarterly, and half-yearly payouts. Monthly payouts are available at discounted interest rates.
• Additional Benefits for Senior Citizens: Senior citizens enjoy higher interest rates (up to 0.50% extra) across several slabs, with annualised yields reaching up to 7.87%.
• Special FD Schemes: Karur Vysya Bank also offers options like Tax Shield FD (also known as Tax Saver FD) and Green Deposits, catering to different financial planning needs.
• Penal Interest on Pre-closure: For deposits up to ₹3 Crores, a 1% penalty is deducted from the applicable ROI. For deposits above ₹3 Crores, pre-closure norms apply. Interest is calculated based on the actual tenure with the bank.
• Sweep-In/Sweep-Out Facility: KVB offers a Rainbow Savings Account that combines the features of a savings account and a fixed deposit. For example, in a savings account with a set balance of ₹1,00,000, additional funds are swept into FDs. Similarly, if the balance falls below ₹1,00,000, funds are swept back in multiples of ₹10,000 from the fixed deposit to maintain liquidity.

Karur Vysya Bank FD Interest Rates

The following are the latest Karur Vysya Bank rates for term deposits below ₹3 crore.

Domestic Term Deposits Regular (Below ₹3 Crores)

*Karur Vysya Bank FD interest rates w.e.f. May 16, 2025.

Senior Citizen Domestic Deposits (Below ₹3 Crores)

*Karur Vysya Bank FD interest rates w.e.f. May 16, 2025.

How to Open a Karur Vysya Bank FD

1. Online Method

   If you already have a savings account with Karur Vysya Bank, you can easily open an FD online through either the mobile app or internet banking.

   Using the KVB Mobile Banking App:

   • Log in to the Karur Vysya Bank Mobile App.
   • Go to the Banking section and select Fixed/Recurring Deposits.
   • Click on “Open Fixed Deposit.”
   • An online form will appear, select the FD tenure and enter the deposit amount.
   • After reviewing the details, submit the form to complete the FD creation process.

   Using KVB Internet Banking:

   • Log in to the KVB Internet Banking portal.
   • Navigate to the “Personal” tab.
   • Select “Fixed Deposits” from the menu and click on “Apply Now.”
   • Fill in the required details, including tenure and deposit amount, in the online form.
   • Submit the form to successfully open your fixed deposit

2. Offline Method

   • Visit the nearest Karur Vysya Bank branch.
   • Fill out the FD application form.
   • Submit your PAN, Aadhaar, and a recent photograph.
   • Deposit the desired amount.
   • Collect your FD receipt from the bank.

Documents Required for Karur Vysya Bank FD

To open a Karur Vysya Bank FD, you will need:

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

Taxation on Karur Vysya Bank FD Interest

As per the updated rules effective from April 1, 2025, TDS is deducted at 10% if the total interest earned in a financial year exceeds ₹50,000 for individuals below 60 years, and ₹1,00,000 for senior citizens. If PAN is not submitted, TDS is deducted at a higher rate of 20%. To avoid TDS, eligible individuals can submit Form 15G/15H (for individuals and senior citizens respectively) at the beginning of the financial year, provided their total income falls below the basic exemption limit.

Key Takeaways

Karur Vysya Bank offers competitive FD interest rates, going up to 7.65% for senior citizens. With flexible tenures, minimal deposit requirements, and multiple interest payout options, these FDs cater to a wide range of savers. Additional features such as nomination, loans against FDs, and special schemes like Tax Shield and Green Deposits make it a diverse and attractive investment option. Depositors can check the best FD rates available to make informed investment decisions.