Karnataka Bank revises interest rates on fixed deposits of less than ₹2 Cr

Karnataka Bank has now introduced a new tenure of one year, on which it will now guarantee interest rates of 6.20% for the general public and 6.60% for elderly persons.

2 min read . Updated: 31 Aug 2022, 02:40 PM IST Vipul Das

Private sector lender Karnataka Bank has modified the interest rates on fixed deposits under ₹2 crore.

Karnataka Bank FD Rates 2022

The bank will continue to provide an interest rate of 3.40% on fixed deposits maturing in 7 days to 45 days and a rate of 4.90% on term deposits maturing in 46 days to 90 days. Fixed deposits with maturities between 91 and 364 days will continue to pay an interest rate of 5.00%, while deposits with new additional maturity of 1 year will now pay an interest rate of 6.20%. On fixed deposits maturing in between one and two years, Karnataka Bank will continue to give an interest rate of 5.50%, and on deposits maturing in between two and five years, the bank will continue to offer an interest rate of 5.65%. The interest rate on fixed deposits has remained constant at 5.70% for maturities of more than 5 years to 10 years.

Karnataka Bank has also mentioned on its website that “New Deposit Scheme "KBL Amrith Samriddhi" is introduced for a fixed period of 75 weeks (525 days) at an interest rate of 6.10% per annum w.e.f. 15.08.2022, valid for limited period only."

Senior citizens would continue to get 0.40% more than the general rate through domestic FD and ACC schemes, excluding NRE/NRO/FCNR(B) accounts, for terms of 1 to 5 years and 0.50% more than the general rate for terms of 5 to 10 years from Karnataka Bank. The bank will give an interest rate of 5.65% for the general public and 6.05% for senior citizens on the "KBL - Tax Planner" scheme, which is a tax-saving fixed deposit of 5 years.

For premature withdrawals of term deposits of less than ₹2 Cr, 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."

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