Karur Vysya Bank Senior Citizen FD Rates 2025

What is a Karur Vysya Bank Senior Citizen FD?

A Karur Vysya Bank (KVB) Senior Citizen FD is a fixed deposit account designed for people aged 60 or above. These FDs give better interest than regular ones and are ideal for retired people or anyone wanting a safe and steady interest income. Investors can choose from monthly, quarterly, or cumulative (at maturity) interest payout options to suit their financial goals.

The account can be opened with a minimum deposit of just ₹100, making it accessible to all types of savers. Check the latest rates to stay updated on the current Karur Vysya Bank FD interest rates. Below are the updated rates, key features of the scheme, and the steps to open an FD account.

Key Benefits of Karur Vysya Bank Senior Citizen FD

Karur Vysya Bank provides various benefits under its senior citizen FD scheme. Below are the standout benefits:

• Flexible Tenure Options: FD tenures for senior citizens range from 7 days to 10 years and above, with a special slab from 333 days to 5 years offering attractive returns. This helps them tailor deposits according to specific goals, such as travel, gifting, or building a stable long-term income source.
• Premature Closure Option: Karur Vysya Bank permits premature FD closure, making it easier for senior citizens to access funds during emergencies. A 1% penalty on the applicable interest rate applies for deposits up to ₹2 crore.
• Deposit Insurance Cover: All Karur Vysya Bank fixed deposits are insured up to ₹5 lakh under the DICGC scheme, ensuring added safety and peace of mind for senior citizen investors.
• Auto-Renewal Facility: Karur Vysya Bank’s auto-renewal feature ensures FDs continue earning interest without any manual renewal. This helps senior citizens maintain uninterrupted savings growth, especially useful for those who may not actively manage their funds or use digital banking.

Karur Vysya Bank FD Interest Rates for Senior Citizens

Below are the latest Karur Vysya Bank senior citizen FD interest rates for deposits below ₹3 crores:

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

*Karur Vysya FD interest rates w.e.f. June 10, 2025
*Senior Citizen Rates do not apply to NRIs.

How to Open a Karur Vysya Bank Senior Citizen FD?

You can open an FD either online (if you are an existing account holder with net banking access) or by visiting a nearby branch.

1. Online Method

   • Log In to Your KVB Online Account: Access your Karur Vysya Bank NetBanking portal or mobile app using your credentials. Make sure your account is active and linked to your mobile number for verification and updates.
   • Navigate to the Deposits Section: Once logged in, go to the “Deposits” tab on the dashboard. Click on “Open Fixed Deposit” to begin the FD creation process for senior citizens.
   • Enter Deposit Amount and Tenure: Specify the amount you wish to deposit and select a tenure that suits your financial goal, from short-term needs to long-term savings plans of up to 10 years.
   • Choose the Senior Citizen FD Option: Ensure you tick or select the “Senior Citizen FD” checkbox. 
   • Select Interest Payout Frequency: Decide how often you’d like to receive interest: monthly, quarterly, or at maturity. 
   • Add Nominee and Submit Application: Fill in the nominee details for added safety and submit the request. Once processed, you’ll receive an SMS and email confirmation, and your Karur Vysya Bank FD will be created digitally.

2. Offline Method

   • Visit Your Nearest Karur Vysya Bank Branch: Head to the closest KVB branch during working hours. Carry your identification documents and account details to ensure a smooth and efficient fixed deposit account opening process.
   • Request the Fixed Deposit Application Form: Speak to the bank staff and ask for the FD application form specifically for senior citizens. They may also assist you in filling out any sections if you need help.
   • Fill in Personal and Deposit Details Carefully: Complete the form by entering your full name, date of birth, contact details, deposit amount, tenure, and interest payout preference. Double-check all fields to avoid delays in processing.
   • Provide Valid Senior Citizen Age Proof Documents: Submit photocopies of documents like Aadhaar card, PAN card, Voter ID, or Passport to confirm your age eligibility for the Karur Vysya Bank senior citizen FD scheme.
   • Deposit the Chosen Amount via Cash or Cheque: Hand over your deposit amount through cash or cheque. Ensure the payment matches the details you provided on the application form to avoid mismatch issues.
   • Collect Your Fixed Deposit Receipt After Processing: Once the account is created, the bank will issue a fixed deposit receipt as proof. Keep it safe for records, it contains all critical details like tenure, rate, and maturity date.

Taxation on Karur Vysya Bank Senior Citizen FD Interest

Interest earned from your Karur Vysya Bank senior citizen FD is fully taxable under the Income Tax Act. If the total interest income in a financial year exceeds 1,00,000, Tax Deducted at Source (TDS) is applicable. However, senior citizens can avoid TDS by submitting Form 15H, provided their total income is below the taxable threshold. Additionally, they can claim a deduction of up to ₹50,000 annually under Section 80TTB. If Karur Vysya Bank offers a 5-year tax-saving FD, they may also be eligible for deductions under Section 80C, up to ₹1.5 lakh.

Key Takeaways

Karur Vysya Bank senior citizen FDs have higher interest rates than regular FDs, making them suitable for retirees seeking stable income. Tenure options range from 7 days to 10 years, including special slabs like 333 days and 444 days. Interest payouts can be chosen as monthly, quarterly, or cumulative. Loans against FDs are also available, offering liquidity without the need for premature closure. While loans against FDs offer additional liquidity, the principal remains intact.