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Karur Vysya Bank Fixed Deposit

Updated 06 Dec 2023

Karur Vysya Bank (KVB) is a leading commercial bank having approximately 800 branches. The bank started from a small town in Tamil Nadu in 1916 and has now spread its wings across 20 states and 3 Union Territories. KVB is among the highest fixed deposit interest providers amongst other commercial banks. This article provides more insights on various Fixed Deposit options provided by KVB.

 

Fixed Deposits (FDs) are a secured way of investing wherein money can be deposited for a fixed period at a predetermined fixed rate of interest, usually higher than a savings bank account.

Types of Karur Vysya Bank Fixed Deposits

  • Standard FD
  • Special FD
  • Tax saving FD
  • KVB’s Reinvestment Plan (TTT)
  • Double Delight
  • Senior Citizen Deposit

Benefits of Investing in KVB’s FD

  • Option to choose interest payment frequency (monthly, quarterly, half-yearly, annually)
  • One can avail of overdraft against the deposits at marginal interest rates
  • KVB offers FDs with differential rates allowing premature withdrawals.
  • One can save tax by investing in tax-saving fixed deposits.
  • Using the online application of Karur Vysya Bank, one can easily deposit in a fixed deposit account by opening an account with the bank.
  • Senior citizens are offered additional interest rates, often up to 0.50% more than regular citizens.

Features of Karur Vysya Bank Fixed Deposits

Standard FD

  • A standard FD can be started with a minimum investment of ₹100 for a period ranging from 7 Days to 10 years. 
  • This is usually the preferred FD option chosen by investors. Investors can also avail of loans against their FDs. 
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

Special FD

  • Special FDs are named so as these are usually launched for a special period. 
  • These FDs offer higher interest rates than Standard FDs and are popular among investors. 
  • KVB keeps launching Special FDs for different durations, and currently, the bank has Special FDs for 444 days and 555 days. 
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

Tax saving FD

  • Unlike Standard FDs, Tax Saving FDs have a lock-in period of 5 years and do not provide the option of pre-mature withdrawal or availing loan against the deposit. 
  • The amount invested herein allows the investor to avail of a tax deduction under 80C of the Income-tax Act, 1961 (I-T Act).  
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

KVB’s Reinvestment Plan (TTT)

  • This scheme is named ‘Tirumagal Tirumana Thittam’ (TTT). 
  • The scheme caters to the long-term goals of investors, like a daughter’s marriage or children’s education, and provides reinvestment of the interest component, thereby providing benefits of compounding.
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

Double Delight

  • Deposits under this scheme provide the investor with the additional benefit of free hospital insurance coverage for a maximum of 7 days in a year. 
  • This deposit scheme provides the facility of investing in odd amounts and getting round sums on maturity. 
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

Senior Citizen Deposit

  • Under this scheme, depositors aged 60 years and above are provided preferential interest rates. 
  • The deposit scheme offers both cumulative and non-cumulative options and requires compulsory nomination. 
  • Based on the tenor, the interest rate for this scheme ranges from 4.00% to 7.25% for the general public and 4.06% to 7.45% for senior citizens.

KVB’s FD Eligibility Criteria

Any person in his capacity or more than one person in their joint names, any minor jointly with a major, can open a deposit with KVB.

Further, Sole Proprietary concerns, members of charitable and educational institutions, HUF, Clubs, Private Traders, Merchants, Agents, Professionals, Partnerships Firms, Societies & Corporates are also eligible to open their fixed deposit accounts with KVB.

One can start a fixed deposit with a minimum investment of ₹ 100

Documents required for KVB’s FD account

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer

 

  • For Identification Proof – PAN Card, Driving License, Passport, Voter’s ID, Aadhar Card, Govt./Defense ID card or ID Card issued by a Reputed employer.
  • For Address proof - Aadhar Card, Electricity Bill, Telephone Bill, Ration Card, Bank account statement, Letter from a reputed employer, Letter from any recognized public authority /local body, Income tax / wealth tax Assessment order
  • For Date of Birth proof -  Applicable for Senior Citizens & Minor only.

For Senior Citizens ( any one of the following)

  • Passport
  • Voter ID Card
  • Driving License
  • PAN Card
  • Service Discharge Certificate
  • PPO in case of Pensioner

For Minors

  • Birth Certificate issued by Gram Panchayat / NAC (Notified Area Committee) / Municipal corporation.

Two recent passport-size photographs of account holders.

Note- The above requirements are waived if the customer is already an account holder of the Bank

How to Open an FD with KVB

1. If you already hold a Savings or Current Account with KVB, a Fixed Deposit can be opened using the below procedure.

 

  • Using KVB Mobile Application (App)

Login to the KVB Application, Go to the Banking section in the App, Click on the Fixed/Recurring Deposits option, then click on Open Fixed Deposits. By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. After filling the form once can submit the details and create an FD.

 

  • Using KVB Internet Banking Website

Login to the KVB Internet Banking website, and navigate to the “Personal” tab. From the menu, select “Fixed Deposits” and click on “Apply Now. This will generate an online form in which you will be required to select the FD tenure and insert the deposit amount. After filling the form once can submit the details and create an FD.

 

2. If you are a new customer of KVB and do not hold any account, you can visit the nearest KVB Bank with the Original PAN & Aadhar as well as the soft copy of the same. The bank official will help you to directly open an FD without having any savings / current account.

 

3. Also, there is an option to create a savings/ current account with the bank and then open an FD using a Mobile application or Internet Banking Facility.

Procedure to Terminate Karur Vysya Bank Fixed Deposit Account

1. Complete the account termination form/FD release form

  • To initiate the process of terminating your fixed deposit at Karur Vysya Bank, begin by filling out the account termination form.
  • Visit the bank's local branch, collect the relevant form, and provide it with the necessary documents.
  • Submitting this form to the branch supervisor or designated official is crucial.
  • In cases of joint accounts, the signatures of all the account members are mandatory on the termination form.

2. Include your KYC documents

  • Every fixed deposit account member must provide copies of their KYC documents.
  • This should consist of identity verification and residential proof.
  • Ensure you sign these copies before submission for validation.

3. Present your Fixed Deposit Certificate or Receipt

  • Upon opening a fixed deposit, the bank furnishes you with a deposit certificate or a receipt.
  • This document highlights deposit sum, duration, and interest rate details.
  • Presenting this certificate or receipt is essential when terminating the fixed deposit.
  • All account members should sign this document.
  • Upon verifying the paperwork, you will then proceed to claim the remaining balance.

FAQs

When is the right time to invest in an FD?

One can invest in Fixed Deposits when interest rates are high or when someone has retired and aims to have a safe investment.

Why should I invest in fixed deposits when other investment instruments are offering better returns?

Investing in a Fixed Deposit is a liquid asset and can be beneficial in emergency situations. For example, in a bear market when equity investments are down and you are in the need of money, premature FD withdrawal can be more beneficial than withdrawing investments by incurring losses.

It is also a good investment to have post-retirement so that the money can be used in case there is a medical emergency.

Is the ₹ 5 lakh DICGC insurance cover applicable separately for every bank?

Yes, for such extreme situations, each depositor is insured up to a maximum of ₹5 lakh (for both principal and interest). In case you have multiple fixed deposits with several banks, the insurance coverage cap is separately applied to the amount in every bank.

How is a tax-saver FD different from a regular FD?

A tax-saving FD has a lock-in period of 5 years. No premature withdrawals, overdrafts, or loan facilities are available under a tax-saving FD. Whereas one can have a regular FD for any tenure as per the choice of an individual, and they are eligible for premature withdrawals

How can I break my KVB FD?

Offline: Place a request at your nearest KVB Branch. This method will credit the amount to your account within 24-48 hours.

Online: Log in to the app or website and open the FD you want to break, click on Premature Withdrawal, and the amount will be credited within the same day.

Does KVB offer Sweep Facility for FDs?

Yes, KVB has a sweep facility. You can open a Rainbow Savings Bank account with the bank, of which any balance over the minimum specified balance (in multiples of ₹. 10,000) will be swept out to form an FD at EOD every Sunday.

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Karur Vysya Bank

Calculate Karur Vysya Bank FD Returns

₹1,00,000
6%
365
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Maturity Amount₹1,06,000

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