Home / Industry / Banking /  Karnataka Bank revises FD rates, now offers up to 7.20% on 555 days tenor
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The private sector lender Karnataka Bank has revised interest rates on fixed deposits of less than 2 Cr. As per the official website of the bank, the new rates are effective as of 1st December 2022. Following the revision, the bank is offering an interest rate ranging from 5.25% to 5.80% on FDs maturing in 7 days to 10 years. Karnataka Bank is now offering a maximum interest rate of 7.20% on deposits maturing in 555 days (KBL Centenary Deposit).

Karnataka Bank FD Rates

The bank is currently paying an interest rate of 5.25% on deposits maturing in 7 days to 364 days, and Karnataka Bank is currently offering an interest rate of 7.20% on deposits maturing in 555 days (KBL Centenary Deposit). Deposits maturing in the next year to two years will now earn an interest rate of 6.80%, while those maturing in the next two years to five years will earn 5.75%. On deposits maturing in more than five years to ten years, Karnataka Bank is now paying an interest rate of 5.80%. If a single rupee term deposit of at minimum 2 crore is prematurely closed, a penalty of 1% of the applicable rate will be applied.

Karnataka Bank FD Rates
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Karnataka Bank FD Rates (karnatakabank.com)

“I also wish to inform our esteemed shareholders that, as a precursor to the Centenary year 2023-24, the Bank has launched a Term Deposit Scheme, "KBL Centenary Deposit Scheme", with an attractive rate of interest of 7.20% for the general public and 7.60% p.a. for Senior Citizens. This is a limited-period offer, and shareholders may kindly take note of this unique scheme," said Mahabaleshwara M S Managing Director & CEO of Karnataka Bank.

For the benefit of senior citizens, Karnataka Bank has mentioned on its website that “0.40% extra over the general rate upto & inclusive of 5 crore only under Domestic FD and ACC Schemes (Not for deposit under NRE/NRO/FCNR(B) accounts) for resident Senior Citizens only for tenure 1 to 5 years and 0.50% extra over the general rate for tenure 5 to 10 years w.e.f. 09.11.2020. Senior Citizen interest rate benefit for term deposits below 1 year is withdrawn w.e.f. June 06, 2019."

On KBL - Tax Planner scheme, the bank is offering 5.75% interest to the general public and 6.15% for senior citizens. Deposit terms are locked in for 5 years for amounts up to Rs. 1.5 lakh each year to claim tax deductions under section 80C.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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