Karnataka Bank hikes fixed deposit rates, get up to 7.50% on 555 days tenor
2 min read 01 Mar 2023, 03:14 PM ISTKarnataka Bank Limited an Indian private sector lender based in Mangalore has announced an interest rate hike on fixed deposits of less than ₹2 Cr.
PremiumKarnataka Bank Limited an Indian private sector lender based in Mangalore has announced an interest rate hike on fixed deposits of less than ₹2 Cr. The bank is now offering interest rates between 5.25% and 5.80% on deposits with maturities ranging from 7 days to 10 years. The bank will grant a maximum interest rate of 7.50% on a 555-day deposit tenure. The bank has said on its website that the interest rates on fixed deposits are in effect as of today, March 1, 2023.
Karnataka Bank FD Rates
On fixed deposits maturing in 7 days to 364 days, the bank will now offer an interest rate of 5.25% and on those maturing in 1 year to 2 years, Karnataka Bank will now promise an interest rate of 7.00%. Karnataka Bank will now promise an interest rate of 7.50% on a deposit tenor of 555 days (KBL Centenary Deposit) and an interest rate of 5.75% on a deposit tenor of above 2 years to 5 years. Deposits maturing from above 5 years to 10 years will now fetch an interest rate of 5.80%.
For resident senior citizens exclusively, Karnataka Bank is giving an additional rate of 0.40% over and above the regular rate under Domestic FD for tenures of 1 to 5 years and 0.50% over the standard rate for tenures of 5 to 10 years.
On 555 days (KBL Centenary Deposit), senior citizens will get an interest rate of 7.90% and for those maturing in 1 year to 2 Years, senior citizens can earn an interest rate of 7.40% from Karnataka Bank. The bank is now offering an interest rate of 6.15% to senior citizens on fixed deposits of less than ₹2 Cr maturing from above 2 years to 5 years and an interest rate of 6.30% on those maturing from above 5 years to 10 years.
Karnataka Bank allows KBL - Tax Planner fixed deposit of 5 years with 5.75% interest rate for the general public and 6.15% for senior citizens. KBL-Tax Planner's deposit terms are limited to 5 years for deposits of no more than Rs. 1.5 lakhs per year. With this scheme, premature closure is not permitted for the depositors.
Stating the guidelines against premature withdrawals of fixed deposits, Karnataka Bank has mentioned on its website that “Penalty of 1% on applicable rate shall be levied for premature closure of single rupee term deposit of ₹2 crore & above. For the purpose, applicable rate means interest rate applicable for the period the deposit has remained with the Bank or contracted rate, whichever is less."
Meanwhile, IDFC First Bank has hiked interest rates on fixed deposits of less than ₹2 Cr. The bank offers interest rates of 3.5% to 7.00% for deposits with maturities ranging from 7 days to 10 years. Deposits maturing between 18 months, 1 day, to 3 years (549 days to 3 years) are now eligible for a maximum interest rate of 7.75% from IDFC First Bank. IDFC First Bank stated that the new rates are in effect as of today, March 1, 2023, on its website.
