Interest Rates
4.50% – 7.80%
Time Period
7 days – 20 years
Min - Max Amount
1,000 - No upper limit
Compounding
Quarterly
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Expected Rate of Return
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Invested Amount
₹ 10,000
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Karnataka Bank Limited stands as one of India's premier private sector banks with a distinguished legacy spanning over a century. Established on February 18, 1924, in Mangaluru, the bank has evolved from its regional roots into a nationally recognised financial institution. Headquartered in Mangaluru, Karnataka, it operates an extensive network of branches across the country, demonstrating a robust pan-India presence. The bank's philosophy, "Your Family Bank Across India," underscores its commitment to building long-term, trust-based relationships with its customers.
The bank offers a comprehensive suite of financial products encompassing retail and corporate banking, NRI services, treasury operations, and digital banking solutions. Karnataka Bank has consistently maintained a reputation for financial prudence, stability, and customer-centric innovation. Its fixed deposit schemes are particularly renowned for their competitive interest rates and flexibility, making them a preferred choice for risk-averse investors. The bank's strong fundamentals are reflected in its consistent credit ratings and its ability to navigate various economic cycles successfully.
Karnataka Bank is publicly listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India. It has received high credit ratings from premier agencies like CRISIL and ICRA for its fixed deposit programmes, which signify a high degree of safety regarding the timely servicing of deposits. The bank's digital transformation journey, marked by its 'KBL VICTORY' digital platform, has significantly enhanced customer accessibility and convenience, allowing for seamless banking experiences.
The bank's strategic focus combines technological adoption with personalised service, ensuring it meets the needs of both traditional and modern banking customers. Its fixed deposit products are designed to cater to a diverse clientele, from individuals seeking secure savings options to senior citizens looking for enhanced income. This blend of heritage and innovation positions Karnataka Bank as a reliable and forward-thinking financial partner.
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 – 14 days | 4.50% | 5.00% |
15 – 30 days | 4.50% | 5.00% |
31 – 45 days | 5.00% | 5.50% |
46 – 90 days | 5.75% | 6.25% |
91 – 179 days | 6.00% | 6.50% |
180 – 269 days | 6.75% | 7.25% |
270 – 364 days | 7.00% | 7.50% |
1 year – 2 years | 7.50% | 8.00% |
2 years 1 day – 3 years | 7.30% | 7.80% |
3 years 1 day – 5 years | 7.10% | 7.60% |
5 years 1 day – 10 years | 7.00% | 7.50% |
Above 10 years | 6.75% | 7.25% |
Note: The data is as of July 17, 2025. Rates are for deposits less than ₹2 Crores.
Karnataka Bank Fixed Deposits provide a secure and profitable investment avenue with a spectrum of competitive interest rates. A significant benefit is the additional interest rate of 0.50% per annum offered to senior citizens across all tenures, enhancing their post-retirement income. The investment is highly accessible with a low minimum deposit of just ₹1,000 and no specified upper limit, catering to both small savers and high-net-worth individuals. Tenures are exceptionally flexible, ranging from a short 7 days to a long-term period of up to 20 years, accommodating every financial goal from immediate savings to retirement planning.
Investors have the freedom to choose their interest payout frequency, including monthly, quarterly, half-yearly, annual, or cumulative options, ensuring alignment with their cash flow needs. The bank provides liquidity through loans against these fixed deposits, offering up to 90% of the deposit value, thus preventing the need for premature closure during financial emergencies. Features like auto-renewal, a nomination facility, and seamless management through the KBL VICTORY digital platform add layers of convenience and security. Backed by the bank's 'AA+' rated stability, these FDs represent a compelling blend of high returns and capital safety.
This is the standard deposit product offered to all resident individuals. It provides competitive returns for periods ranging from one week to twenty years. Customers can opt for periodic interest payouts or a cumulative option where interest is compounded quarterly and paid at maturity. The scheme allows for premature withdrawal, subject to terms, and permits loans against the deposit, offering both growth and liquidity.
This is a 5-year term deposit specifically designed for tax planning under Section 80C of the Income Tax Act, 1961. Investments up to ₹1.5 lakh per financial year are eligible for a tax deduction. It has a mandatory lock-in period, meaning premature withdrawal or availing a loan against this FD is not permitted. The interest earned is taxable, but the principal amount offers an immediate reduction in taxable income.
This scheme caters to individuals aged 80 years and above, offering them an even higher preferential interest rate. It is tailored to support the specific financial needs of super seniors, providing them with an enhanced regular income. This reflects the bank's deep commitment to serving the elderly community with dedicated and beneficial products.
In this plan, the interest is not paid out periodically but is reinvested and compounded quarterly. This leads to a significantly higher maturity value as the interest earns more interest over time. It is the ideal choice for investors who do not need regular income and want to maximise their returns for a long-term financial goal.
This option is designed for those who require a steady stream of income from their investment. Interest is paid out at regular intervals, monthly, quarterly, half-yearly, or annually. It is particularly beneficial for retirees and senior citizens who rely on their investment income to cover daily living expenses.
This innovative product links a Fixed Deposit with a Savings Account. Surplus funds in the savings account beyond a set limit are automatically transferred to a fixed deposit to earn higher interest. Conversely, if the savings account balance falls short, funds are automatically swept back from the FD, ensuring optimal returns without sacrificing liquidity.
Karnataka Bank offers specialized FDs for Non-Resident Indians, including NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts. These deposits allow NRIs to invest their foreign earnings or Indian income in India, with benefits like tax-free interest for NRE FDs and easy repatriation, serving as a vital financial link to their home country.
These deposits, spanning 7 days to less than a year, offer rates from 4.50% to 7.00% for general citizens. They are perfect for parking temporary surplus funds or building an emergency corpus, providing better returns than a savings account while keeping the capital readily accessible when needed.
Covering 1 year to 3 years, this category offers the most attractive rates, going up to 7.50% p.a. This tenure is ideal for achieving medium-term goals like saving for a vehicle, funding higher education, or making a down payment on a property, offering an excellent balance of yield and commitment.
With tenures from 3 years to 20 years and rates up to 7.30%, these FDs are suited for long-haul objectives like retirement planning or wealth creation for a child's future. They allow investors to lock in favourable rates for an extended period, leveraging the power of compounding for substantial corpus building.
| Tenure Range | Institution Name | Interest Rate Range (%p.a.) |
|---|---|---|
| 1 year – 2 years | 7.50› |
 | 18 months 1 day – 24 months | 8.15› |
 | 1 year – 2 years | 7.25› |
 | 501 days – 2 years | 8.25› |
 | 1 year – 2 years | 8.00› |
Note: The data is as of July 17, 2025
Existing customers can open an FD instantly by logging into their account on the Karnataka Bank website or the KBL VICTORY mobile app. Navigate to the 'Open Deposit' section, select 'Fixed Deposit', and choose the desired scheme. You will need to enter the deposit amount, select the tenure, and specify the interest payout frequency (e.g., monthly, cumulative). The system will display the applicable interest rate and the maturity amount. After verifying the details and confirming the nomination, you can authorise the transaction using your password or OTP. The amount will be debited from your linked savings account, and a digital Fixed Deposit Receipt (FDR) will be generated immediately for your records.
You can visit any Karnataka Bank branch to open an FD in person. Request and fill out the Fixed Deposit application form, providing all necessary details such as the deposit amount, tenure, and nominee information. Submit this form along with self-attested copies of your KYC documents (like PAN card and Aadhaar card) to a bank official. You can fund the FD using cash (within regulatory limits), a cheque, or a transfer from your existing Karnataka Bank account. Once processed, the bank will issue a physical Fixed Deposit Receipt. This FDR is a crucial document and must be kept safely until the deposit matures, as it is required for any future transactions or at the time of maturity.
The following entities are eligible to open a Fixed Deposit account with Karnataka Bank: Resident individuals (single or joint holdings), Minors through their natural or legal guardians, and Senior Citizens (aged 60+)/Super Senior Citizens (aged 80+) who are eligible for preferential rates. The eligibility also extends to Non-Resident Indians (NRIs) under NRE/NRO schemes, Hindu Undivided Families (HUFs), Sole Proprietorships, Partnership Firms, Limited Companies, Trusts, Societies, and other legally recognised entities. All applicants must meet the prevailing KYC (Know Your Customer) norms as stipulated by the bank and the Reserve Bank of India.
For identity proof, a PAN card is mandatory. Other valid documents include an Aadhaar card, Passport, Voter ID, or Driving Licence. For address verification, you can submit an Aadhaar card, Passport, utility bill (not older than 3 months), or a property tax receipt. A recent passport-sized photograph is also required. In the case of joint accounts, the KYC documents of all account holders are necessary. For non-individual entities like companies or trusts, additional documents such as the Certificate of Incorporation, Partnership Deed, Trust Deed, and board resolutions authorising the investment must be provided.
The interest earned on a Karnataka Bank Fixed Deposit is treated as "Income from Other Sources" and is added to the depositor's total annual income, making it taxable as per their applicable income tax slab. The bank is mandated to deduct TDS (Tax Deducted at Source) at a rate of 10% if the total interest income from all FDs with the bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). It is critical to provide your PAN to the bank; failure to do so results in a higher TDS deduction of 20%. Investors can avoid TDS by submitting a valid Form 15G (for individuals below 60) or Form 15H (for senior citizens) if their total income is below the taxable limit. While the KBL Tax Saver FD offers a deduction on the principal under Section 80C, the interest accrued is taxable every year, even if it is not paid out, which is a key point for investors to consider in their tax planning.
Karnataka Bank allows the premature withdrawal of fixed deposits; however, this is subject to a penalty. The bank typically charges 1.00% less than the contracted interest rate for the period the deposit has been held. No interest is paid if the FD is closed within the first 7 days. It is important to note that the KBL Tax Saver Fixed Deposit has a strict 5-year lock-in period and cannot be withdrawn prematurely under any circumstances, except in the event of the depositor's death.
Log in to your Karnataka Bank internet banking or mobile banking (KBL VICTORY) and navigate to the 'Open Deposit' section. Select 'Fixed Deposit', enter the amount, tenure, and other details, and authorise the transaction to book your FD instantly.
The minimum amount required to open a Karnataka Bank Fixed Deposit is ₹1,000. There is no maximum limit, allowing investors to deposit any larger amount.
Karnataka Bank offers a wide range of tenures from 7 days up to 20 years for regular FDs. The KBL Tax Saver FD has a fixed tenure of 5 years.
You must be an existing customer of Karnataka Bank with an active savings or current account and be registered for internet banking. New customers need to first open a bank account and complete the KYC process.
As of July 17, 2025, the highest rate for regular citizens is 7.50% for a 1-2 year tenure. Senior citizens can earn up to 8.00% for the same period.
Use the FD calculator on the Karnataka Bank website to determine your exact interest income and maturity value. This helps you estimate your tax liability and decide on the amount to invest in a Tax Saver FD under Section 80C.
Choose a cumulative FD to benefit from compounding and select a tenure in the 1-3 year bracket for the best interest rates. Senior citizens should always opt for their preferential rates and avoid premature withdrawals to prevent penalty charges.
