Karur Vysya Bank FD Interest Rate
Updated 06 Dec 2023
Karur Vysya Bank Fixed Deposit Interest RatesNote: All interest rates are updated as of 07 Dec 2023
|Tenure||For General Citizen (p.a)||For Senior Citizen (p.a)|
|7 Days to 14 days||4 %||4 %|
|15 Days to 30 days||4 %||4 %|
|31 Days to 45 days||5.25 %||5.25 %|
|46 Days to 90 days||5.25 %||5.25 %|
|91 Days to 120 days||6 %||6 %|
|121 Days to 180 days||6 %||6 %|
|181 Days to 270 days||6.25 %||6.25 %|
|271 Days to less than 1 year||6.5 %||6.5 %|
|1 Year to 443 days||7 %||7.4 %|
|7.3 %||7.8 %|
|445 Days upto 2 years||7 %||7.4 %|
|Above 2 years upto 3 years||7 %||7.4 %|
|Above 3 years upto 5 years||6.25 %||6.65 %|
|Above 5 years upto 6 years||6.25 %||6.65 %|
|Above 6 years||6.25 %||6.65 %|
|For KVB - Tax Shield Deposits||5.9 %||5.9 %|
Types 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.
- 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.
- 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 a tax deduction under 80C of Income-tax Act, 1961 (I-T Act).
- KVB’s Reinvestment Plan (TTT): This scheme is named ‘Tirumagal Tirumana Thittam’ (TTT). The scheme caters to the long term goals of investors like daughter’s marriage or children’s education and provides reinvestment of the interest component thereby providing benefits of compounding.
- Double Delight: Deposits under this scheme provides the investor with an 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.
- Senior citizen Deposit: Under this scheme, depositors aged 60 years and above are provided with preferential interest rates. The deposit scheme offers both cumulative and non-cumulative options and requires compulsory nomination.
- Karur Vysya Bank Fixed Deposit Interest Rates: Generally, with the rise in repo rates, banks tend to increase their deposit and lending rates. The repo rate by the RBI acts as a benchmark for banks, NBFCs, and other financial institutions as this is the rate at which the RBI lends money to the banks.KVB offers several advantages like assured returns, overdraft facility against the fixed deposit and pre-mature withdrawal options.
Pros and Cons of Investing in KVB’s FD
- Option to choose interest payment frequency (monthly, quarterly, half yearly, annually)
- One can avail overdraft against the deposits at marginal interest rates
- KVB offers FDs with differential rates allowing premature withdrawals.
- One can save tax by investing into 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 which are often up to 0.50% more than that for regular citizens.
- Interest earned on fixed deposits are not tax-free and are subject to tax as per your applicable income tax slab rate.
- In some cases, banks deduct TDS at the time of payment of interest. Hence, if the individual has income below the basic exemption limit as defined under the Income-tax Act and is not liable to pay any income tax, he/she will still have to file the Income Tax return to claim the refund of TDS deducted by the bank.
- Historically Fixed Deposits have given lower returns as compared to Mutual Fund and equity instruments.
KVB’s FD Eligibility Criteria
Any person in his individual 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) :
- 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.
- For Senior Citizens ( any one of the following) :
- 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.
Tax implications on KVB’s Fixed Deposits
The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.
- The interest earned on Fixed Deposit is taxable in the hands of an individual (age less than 60 years). The tax is levied as per the normal tax slab applicable for such individuals.
- In the case of a senior citizen (Age above 60 years), a deduction of up to ₹ 50,000 is available under section 80 TTB of I-T Act.
- In case of a 5-year tax saving fixed deposit, you will be entitled to a deduction under section 80C of the I-T Act, wherein the deduction would be equal to the amount deposited during the Financial year with the maximum threshold limit of ₹ 1,50,000. (This benefit is not available for individuals who opt for a New Tax Regime)
Tax rates on interest
TDS is deducted as per IT rules on interest earned more than Rs.40,000/- per annum (Rs 50,000 for resident senior citizens) during the financial year @ 10% as per Section 194A of the Income-tax Act,1961..
However, if your total income is below the taxable limit, you can submit Form 15G or Form 15H (For senior citizens) to the bank and request them not to deduct any TDS.
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. With this method, the amount will be credited to your account within 24-48 hours.
Online: Log in to the app or website and open the FD that 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 in excess of 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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