| Started On | 1924 |
| Head Quarters | Karnataka |
| CRISIL Rating | NA |
| CEO | Mahabaleshwara M. S |
| Listed on exchange as | Karnataka Bank Ltd. |
| ICRA Rating | NA |
| Tenure | Regular customers | Senior citizens |
|---|
The FD provides short-term deposits ranging from 7 days to 1 year. The interest rates for general customers are 3.4% to 5.1%, and the same stands for senior citizens.
Medium-term deposits range from 1 year to 4 years and 11 months, and the interest rates for general customers are 5.2% to 5.5% and 5.6% to 5.9% for senior citizens.
Long-term deposits range from 5 years to 9 years and 11 months. The interest rates for general customers are 5.6% and for senior citizens are 6.1%.
| Name | Tenure | Interest rate |
|---|
One can apply for Karnataka Bank FD on both online and offline modes. One can visit the bank’s official website followed by downloading and filling out the form. Alternatively, one can visit the branch to get the form. Irrespective of the modes, one has to fill out the details, affix the signature at the prescribed place in the form and submit it to the concerned bank official for further processing. On successful verification, the bank will open a fixed deposit account.
Individuals or entities satisfying the following criteria can opt for a fixed deposit in Karnataka Bank –
The following documents have to be furnished for opening a Karnataka Bank FD-
An investment in Karnataka Bank Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Karnataka Bank FD entitle to tax saving under Section 80C of the Income Tax Act.
Also, note that the interest income from the Karnataka Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Karnataka Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Karnataka Bank provides loans against their Fixed Deposits. The loan and the rate of interest for the loan depend on the rules set by Karnataka Bank.
Karnataka Bank permits premature withdrawal of FDs, excluding the tax-saving deposits. For deposits below Rs 2 crore, Karnataka bank will not levy any penalty. However, if the deposits above Rs 2 crore opt for premature withdrawal, the bank charges 1% interest as a penalty on the contracted rate.
What is the Karnataka Bank Fixed Deposit's minimum deposit period?
Karnataka Bank Fixed Deposit has a 7-day minimum deposit term.
What is the maximum Karnataka Bank Fixed Deposit deposit period?
Karnataka Bank Fixed Deposit has a minimum deposit duration of ten years.
What documents will I be needing?
You will need the following papers:
Can a Karnataka Bank FD account holder terminate it at any time?
Yes, except for tax saver FDs, an account holder can close his/her Yes Bank FD at any time (comes with a lock-in period of 5 years.)
What is the required minimum deposit for the Karnataka Bank Soulabhya Deposit Scheme?
The minimum deposit amount for the Karnataka Bank Soulabhya Deposit Scheme is Rs. 5,000, with subsequent deposits in multiples of Rs. 1,000.