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 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 with applicability of ongoing Karur Vysya Bank FD interest rates.

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 customise 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 ₹3 crores.
• 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.
• Loan Option Available: A loan against a deposit is a secured loan where you use your fixed deposit (FD) as collateral to borrow money. This allows you to access funds without prematurely breaking your FD, ensuring you continue to earn your original investment interest.

KVB Senior Citizen FD Rates 2025

Below are the latest fixed deposit interest rates offered specially for the senior citizens of KVB for deposits below ₹3 crores:

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

*Karur Vysya FD interest rates w.e.f. August 08, 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 a Branch: Go to your nearest KVB branch during working hours.
   • Request Form: Ask the bank staff for the Senior Citizen Fixed Deposit application form.
   • Fill Details: Fill out the form with your personal information, deposit amount, desired tenure, and interest payout preference.
   • Submit Documents: Provide a valid age proof (e.g., Aadhaar card, PAN card, Voter ID) and other necessary KYC documents.
   • Make Deposit: Deposit the amount via cash or cheque as specified in the form.
   • Collect Receipt: Once processed, you will receive a fixed deposit receipt confirming the details of your investment.

Tax Implications on KVB Senior Citizen FD rates

KVB FD rates for senior citizens are 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

KVB FD rates for senior citizens are higher interest rates than regular FDs, making them suitable for retirees seeking a stable income. Tenure options range from 7 days to 10 years, including special slabs like 333 days and 444 days. Loans against FDs are available, offering liquidity without the need for premature closure and Deposit Insurance Cover.