Karnataka Bank NRE Non-callable term deposits
Karnataka Bank NRE FD Rates are across different time periods (tenures). The interest rates received on Karnataka Bank NRE fixed deposit accounts amounting to ₹2 crore to ₹10 crores are as follows:
| Tenure |
Rs.2 Cr to below Rs. 3 Cr |
Rs.3 Cr to Rs.10 Cr |
| General Public |
Senior Citizen |
General public |
Senior citizen |
| 1 year to 554 days |
6.75 |
7.15 |
6.55 |
6.95 |
| 555 days only |
6.90 |
7.30 |
6.75 |
7.15 |
| 556 days to 2 years |
6.65 |
7.05 |
6.45 |
6.85 |
| Above 2 years to 3 years |
6.40 |
6.80 |
6.35 |
6.75 |
Note:Karnataka Bank NRE FD interest rates are effective from August,01 2025. These rates are subject to change without prior notice.
Features of a Karnataka Bank NRE FD Account
The Karnataka Bank NRE FD account offers its customers various features, including:
-
100% Tax-Free Earnings:
Under Section 10(4) of the Income Tax Act, all interest earned on NRE deposits is completely exempt from Indian income tax. No TDS is deducted by the bank.
-
Full Repatriability:
Both the principal and the interest earned are freely transferable to your country of residence without any upper limits or regulatory approvals.
-
Superior Interest Rates:
NRE FDs offer significantly higher returns than traditional savings accounts, with NRE FD Rates of 2026 peaking at 6.90% p.a. for specific tenures (usually 1–3 years).
-
Safety & Security:
Deposits are backed by major Indian banks and insured by the DICGC up to ₹5 Lakh per depositor per bank.
-
Flexible Liquidity:
You can avail of a loan or overdraft facility (up to 90%) against your deposit, allowing you to access cash without breaking the FD and losing interest.
Eligibility Criteria for a Karnataka Bank NRE FD Account
To invest in the Karnataka Bank NRE FD account, the following conditions must be fulfilled:
- NRIs residing abroad
- Indian students studying overseas
- Seafarers of Indian origin working for overseas shipping companies
- PIOs and OCIs
- Individuals holding a foreign passport (excluding Bangladesh and Pakistan) with Indian lineage, or spouses of Indian citizens
How to Open a Karnataka Bank NRE FD Account?
To open an account and get good Karnataka Bank NRE FD rates, the following general steps are to be followed:
Step 1: Visit Karnataka Bank's official website.
Step 2: Go to the NRI Priority Banking Section.
Step 3: Go to Fixed Deposits.
Step 4: Click Apply Now.
Step 5: Fill in the form that appeared on the screen.
Step 6: Bank officials will contact you soon after.
Documents Required to Open a Karnataka Bank NRE FD Account
The general documents to be submitted for opening a Karnataka Bank NRE FD account are:
- Resident card or foreign passport
- Relevant visa of an overseas country
- Overseas residential proof
- PAN card or Form 60
- Document photocopies attested by officials from overseas Indian banks, notaries, magistrates, or Indian embassies/consulates
Conclusion
One of the easiest ways for NRIs to judiciously invest and grow their earnings from abroad is by investing in a Karnataka Bank NRE FD account. Karnataka Bank NRE FD rates range from 6.40% to 6.90% for general citizens for deposits below 3 crores, which ensures guaranteed financial growth on investments by NRIs.
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