Karnataka Bank Limited is a prominent 'A' Class Scheduled Commercial Bank in India, established on February 18, 1924 in Mangaluru, a coastal town in the Dakshina Kannada district of Karnataka State. The bank originated during the freedom movement of 20th Century India, reflecting the patriotic zeal that swept the nation. Over time, the Bank has expanded with the amalgamation of Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd., and Bank of Karnataka.
Presently, the bank has a pan-India presence, with a branch network of 901 situated across 22 states and 2 Union Territories.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days - 45 days||4.5%||5%|
|46 days - 90 days||4.5%||5%|
|91 days to 179 days||5.25%||6.75%|
|180 days to below 1 year||5.25%||6.9%|
|1 year to 2 years||7%||7%|
|375 days (KBL Centenary Deposit)||7.3%||7.3%|
|Above 2 years - 5 years||6.5%||6.5%|
|Above 5 years - 10 years||5.8%||5.8%|
|Note: All interest rates are updated as of 1st Aug 2023|
Karnataka Bank provides a variety of fixed deposit (FD) schemes with differing interest rates to cater to the varying needs of its customers. Investors can start an FD with Karnataka Bank with as little as ₹100.
Let's discuss the types of FD offered by Karnataka Bank in detail:
Karnataka Bank's fixed deposit scheme is an ideal choice for individuals who seek regular income in the form of interest payouts.
This scheme is named Twin Gain scheme. It is designed to provide convenience and flexibility to depositors. The scheme offers easy withdrawal of money, while the remaining balance earns interest at the contracted rate.
Depositors can choose between two options at the time of deposit, and once selected, the option is irrevocable.
Abhyudaya Cash Certificate
The Abhyudaya Cash Certificate (ACC) scheme is a suitable option for investors who prefer a lump sum payout after a specific period and do not require regular interest payouts. This scheme reinvests the quarterly interest back into the deposit.
Karnataka Bank's Tax Planner scheme is one of the excellent options for investors who want to combine their investments with tax savings. This scheme provides tax benefits of up to ₹1.5 lakhs for the deposits made under Section 80C of the Income Tax Act of 1961.
To invest in Karnataka Bank fixed deposits, the following are eligible:
The following documents are required to invest in Karnataka Bank fixed deposits:
Fixed deposit accounts can be opened in both online and offline methods:
Step 1: Visit the official website of Karnataka Bank.
Step 2: Login to the website
Step 3: From digital banking tab choose ‘Internet Banking’ and then choose ‘Online fixed Deposit (FD/ACC/RD) account opening facility
Step 4: Click on ‘Apply now’.
Step 5: Fill out the required details and submit the form.
Step 6: Enter the OTP received on the mentioned mobile number.
Step 7: Click on ‘Confirm’.
Step 8: The form is submitted, and a bank representative will contact you related to further proceedings.
Step 1: Visit the bank branch.
Step 2: Take the FD application form.
Step 3: Fill in the required details and submit the necessary documents.
Step 4: Submit the form to the branch.
As per the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.
In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:
At the time of filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs.
Tax Deducted at Source (TDS)
Karnataka Bank offers interest rates ranging 4.5-7.3% per annum to the general public and are applicable for tenures that range from 7 days to 10 years. On the other hand, senior citizens can avail of higher interest rates that range from 6.3-7.7% per annum. These interest rates are applicable for tenures ranging from 1 year to 10 years.
Bank offers monthly, quarterly, half-annual, yearly, and at-maturity interest payout choices for its FD plans.
Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover is applicable on Karnataka bank FD
For Minor Term Deposits, once the account holder attains the age of majority, they are required to verify the account balance. If the account was previously operated by their natural or legal guardian, the erstwhile minor must provide a new specimen signature and updated operating instructions. Additionally, the individual must submit a new photograph, complete KYC (Know Your Customer) documents, and fill out an account opening form at the branch.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.