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Karnataka Bank Fixed Deposit Rate
A Fixed Deposit (FD) is one of the most popular savings instruments among the general population in India. It is considered to be a safe and reliable form of investment which provides a higher rate of interest as compared to a regular savings account. It is popular because it is low-risk and free from volatility and market risks. Although the rewards are proportionately low when compared to investing in the stock market, for example, it is free from risk and fluctuation.
A Fixed Deposit is a term deposit account in which money can be deposited for a period that typically ranges from 7 days to 10 years. The Banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, depending on the tenure and principal amount among other factors.
Investing in an FD account becomes an attractive investment option if you have idle money you wish to invest. Opening an FD is a simple investment option that has a hassle-free documentation process.
The money deposited in an FD cannot be withdrawn before maturity, except on payment of a penalty. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Karnataka Bank deposit rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. Karnataka Bank Interest Rates typically ranges from 4%-8% per annum.
The interest earned can be paid in three ways: Simple interest paid on maturity of the deposit, Interest paid on monthly basis (at discounted rate) or quarterly basis. You can choose which kind of interest payout you want.
Karnataka Bank FD rates
Following is an overview of Karnataka Bank Term Deposit Rates and Karnataka Bank Short-Term Fixed Deposit Interest Rates.
Karnataka Bank Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Karnataka Bank directly.)
| Tenure | Interest Rate (% p.a) for Deposits < or = Rs.1 Crore | Interest Rate (% p.a) for Deposits > Rs.1 Crore and up to Rs. 10 Crore | Interest Rate (% p.a) for Deposits > Rs.10 Crore and up to Rs. 100 Crore |
|---|---|---|---|
| 7 days to 45 days | 3.50 | 3.50 | 3.50 |
| 46 days to 90 days | 6.50 | 6.50 | 6.50 |
| 91 days to 179 days | 7.25 | 7.00 | 7.00 |
| 180 days | 7.60 | 7.60 | 7.60 |
| 181 days to 364 days | 7.30 | 7.00 | 7.00 |
| 1 year to 2 years | 7.40 | 6.90 | 6.90 |
| Above 2 Years to 10 years | 7.15 | -- | -- |
Interest Rates on NRE Term Deposits
| Tenure | Deposits < or = Rs.1 Crore | Deposits > Rs 1 Crore and up to 10 Crore | Deposits > Rs 10 Crore and up to 100 Crore |
| 1 year to 2 years | 7.40 | 6.90 | 6.90 |
| Above 2 years to 10 years | 7.15 | -- | -- |
Karnataka Bank FD Interest Rates for Senior Citizens
Karnataka Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates on a regular FD. As of now Karnataka Bank Senior Citizen FD Rate of interest is 0.50% higher for all maturity periods.
| Tenure | Deposits < or = Rs.1 Crore | Deposits > Rs.1 crore and up to Rs.3 Crore | Deposits > Rs.3 Crore and up to Rs.10 Crore | Deposits > Rs.10 Crore and up to Rs.100 Crore |
|---|---|---|---|---|
| 7 days to 45 days | 4.00 | 4.00 | 3.50 | 3.50 |
| 46 days to 90 days | 7.00 | 7.00 | 6.50 | 6.50 |
| 91 days to 179 days | 7.75 | 7.50 | 7.00 | 7.00 |
| 180 days | 8.10 | 8.10 | 7.60 | 7.60 |
| 181 days to 364 days7.80 | 7.80 | 7.50 | 7.00 | 7.00 |
| 1 year to 2 years | 7.90 | 7.40 | 6.90 | 6.90 |
| Above 2 years to 10 years | 7.65 | -- | -- | -- |
How to Calculate Karnataka Bank Fixed Deposit Interest
You can use the Karnataka Bank FD Calculator to help you identify how much interest you will earn on your principal amount. All you need to do is enter the deposit amount, tenure (in months), rate of interest and the kind of fixed deposit scheme you wish to apply for – and the calculator will do the number crunching and present you with a breakup of the interest earned and the maturity amount. Using a calculator provides you with instant, error-free and accurate results.
Alternatively, there are several online sites that allow you to instantly calculate the interest earned on an FD. You can rely on such online resources to calculate the interest accrued on your Karnataka Bank FD. You can enter as many variations as you want, to help you determine how much you want to invest and the interest earned on the principal amount deposited.
You can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate Karnataka Bank FD Rate
A = P x (1 + r/n)nt
I = A - P
Where
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Karnataka Bank FD Premature Withdrawal Penalty
Breaking a fixed deposit might come in handy for an emergency like a medical crisis. In such cases the bank allows partial or complete withdrawal of the deposit amount before completion of its maturity tenure. The bank typically charges a penalty which is communicated to you at the time of application of FD Deposit.
Following are the penalty details:
For Term Deposit of below Rs. 1 crore – The bank charges no penalty for premature closure.
For Term Deposit of Rs. 1 crore and above – The bank shall levy a penalty of 1% on interest rate applicable for the period the deposit has remained with the Bank.
Karnataka Bank Fixed Deposit Rate FAQ
1. What is the minimum and maximum period for a fixed deposit in Karnataka Bank?
The minimum period is 7 days and the maximum is 10 years.
2. What is the eligibility for opening an FD account with Karnataka Bank?
All resident individuals including minors and Hindu undivided families are eligible to open an FD account with Karnataka Bank. For more information, it is advisable to call on the bank directly.
3. What is the documentation required for individuals to open an FD account in Karnataka Bank?
The documentation for opening an FD account in India is fairly simple. You would be required to submit a filled in Application Form with a photograph along with supporting documents for Identity proof, Address proof, Signature proof and Age proof (for senior citizens).
4. How is the interest paid?
Simple Interest can be paid quarterly or the interest can be compounded quarterly and paid up on maturity of the deposit amount.
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