Karnataka Bank NRI FD Rates

Established in 1924, Karnataka bank is one of the leading commercial banks in the country with its branches spread across the country. The bank has over nine decades of experience in the banking sector. Run by qualified professionals, Karnataka bank offers banking and investment opportunities like savings accounts, fixed deposits for domestic and NRI customers, and mutual funds.

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Karnataka Bank FD for NRIs

The most preferred type of investment across Indian households is the FD. Karnataka bank offers attractive interest rates for Fixed deposit schemes. The FD scheme is a risk-free investment and offers periodic income to the person based on their method of deposits - monthly, quarterly, and yearly.

One can start a deposit account with an investment amount of Rs.100 for a minimum period of 7 days. The Bank offers a maximum deposit period of up to 120 months.

Karnataka bank NRI FD rates are impressive and encourage investment from Non-residential Indian citizens for the long term.

Types of FD for NRIs

The types of FDs and the Karnataka Bank NRE FD rates are as follows:

  1. Non-Resident Rupee Term Deposits

    Depending on the maturity period, Karnataka bank offers the NRE term deposit at a rate of over 5%. The maturity period commences from a minimum of 1 year and can extend up to a maximum of 5 years. The NRE customer can avail loan facility based on NRE term deposits.

    The investor can also choose a nominee or a beneficiary to access his deposits after his death. The customer can also request his interest to be paid periodically, i.e. monthly, quarterly, half-yearly and yearly.

  2. Foreign Currency Non-resident Deposit

    FCNR deposit is available for 11 foreign currencies ranging from the USD, GBP, EUR, CAD, etc. The interest rates vary depending upon the currency and the maturity period of the deposit.

  3. Resident Foreign Currency Term Deposit

    RFC term deposits are offered only for USD at the moment. The maturity period is under 1 year ranging from 1 month to 6 months.

Rates Associated with FD types

  1. NRE Rupee Term Deposit

    The interest rates for Karnataka Bank NRE term deposit as of 1st June 2021 are tabulated below:

    Maturity Pattern

    Interest Rate for deposits below 2 crore

    Interest Rate for deposits from 2 crores and up to 10 crore

    1 to 2 years

    5.20

    5.20

    Above 2 years to 5 years

    5.50

    5.50

    Above 5 years to 10 years

    5.60

    5.60

  2. Interest on FCNR (B) Deposits and RFC Deposits

    The interest rates for Karnataka Bank FCNR deposit as of 1st July 2021 are tabulated below:

    Period

    USD

    EUR

    GBP

    AUD

    CAD

    JPY

    CHF

    HKD

    SEK

    1 year

    0.60

    0.01

    0.57

    0.43

    0.88

    0.26

    0.01

    0.55

    0.31

    greater than 1 year but not more than 2 years

    0.60

    0.01

    0.57

    0.43

    0.88

    0.26

    0.01

    0.55

    0.31

    greater than 2 years but not extendable beyond 3 years

    0.74

    0.01

    0.77

    0.59

    1.14

    0.29

    0.01

    0.64

    0.39

    greater than 3 years but not extendable beyond 4 years

    1.17

    0.12

    1.01

    0.90

    1.49

    0.41

    0.01

    0.94

    0.60

    greater than 4 years but not extendable beyond 5 years

    1.39

    0.19

    1.12

    1.13

    1.71

    0.39

    0.01

    1.14

    0.60

    5 years only

    1.55

    0.26

    1.20

    1.34

    1.86

    0.40

    0.04

    1.30

    0.60

  3. Interest Rates for RFC

    The interest rates for the Karnataka Bank RFC deposit as of 1st July 2021 are tabulated below:

    Period

    USD

    GBP

    EUR

    CAD

    AUD

    JPY

    CHF

    SEK

    HKD

    Savings Bank

    0.19

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    1 month to less than 3 months

    0.30

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    3 months to less than 6 months

    0.30

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    6 months but less than 1 year

    0.30

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

    NIL

  4. Broken period Interest on FCNR (B) Deposits

    The interest rates for Karnataka Bank FCNR as of 1st July 2021 are tabulated below:

    Currency

    USD

    GBP

    EUR

    CAD

    AUD

    JPY

    CHF

    SEK

    HKD

    Broken Period Interest

    0.10%

    0.10%

    NIL

    0.10%

    0.10%

    NIL

    NIL

    NIL

    NIL

Premature Closure of the Term Deposits

  • For regular FD accounts, for deposits below Rs.2 crore, there is no penalty levied for premature closure.
  • In the case of single rupee term deposits, for deposits above Rs. 2 crore and above, a penalty of 1% on the applicable rate shall be levied for premature closure. 
  • In case of premature closure for reinvestment, interest shall be paid at the applicable rate without penalty for the amount reinvested, subject to conditions.

Summing It Up

The fixed deposit provides stable returns to the investor without jeopardizing the invested capital. However, the fixed deposit investor must read the terms and conditions of the scheme and understand the charges involved in case of premature withdrawal.

The investor can choose to make deposits both online and offline without much effort. The depositor must also understand that the interest rates are subject to change and are most likely to vary every quarter.

Written By: PolicyBazaar - Updated: 01 September 2021

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