Karnataka Bank FD Interest Rates – Complete Guide & Latest Returns

Key Insights 
 

1. The Karnataka Bank FD Interest rate starts at 3.50% and goes up to 6.65%.
    
2. Karnataka Bank offers senior citizens an attractive highest FD interest rate of 7.05%.
    
3. Karnataka Bank provides flexible FD tenures ranging from 7 days to 10 years, which allows you to choose a duration that best suits your goals.

The Karnataka Bank Fixed Deposit offers a minimum interest rate of 3.50% and a maximum interest rate of 6.65% from Karnataka Bank. The Karnataka Bank FD Interest rates change according to tenure, amount, and schemes.

The Karnataka Bank offers various types of Fixed Deposit schemes for our customers, whether they are salaried individuals, businessmen, or senior citizens.

Example:

I put ₹5,00,000 into a Karnataka Bank fixed deposit at 7.25% for three years. With simple interest, I’ll earn ₹1,08,750, so I’ll get ₹6,08,750 at maturity. This is a safe way for my savings to grow over time.

This blog provides an in-depth understanding of Karnataka Bank Fixed Deposit interest rates.

Including updated 2025 rates, key features, comparisons with other banks, and eligibility criteria.

Karnataka Bank FD Interest Rates 2025

When you're up to date with the Karnataka Bank FD interest rate, you can easily plan for your goals and future with Karnataka Bank. Here is the list of Karnataka Bank Fixed Deposit Interest Rates for 2025.
 

This table shows the starting tenure and the maximum tenure period of Karnataka Bank FD. Different tenure has different interest rates.

Features and Benefits of Karnataka Bank FD

The Karnataka Bank  Fixed Deposit interest rate comes with exciting features that are highly beneficial for Karnataka Bank customers. Here is the list of Features of Karnataka Bank Fixed Deposit:

• Same-day deposit receipt: This is confirmation that you have made an investment in a Karnataka Bank Fixed Deposit.
• Loan opportunity: Karnataka Bank offers a loan on your fixed deposit.
• You can receive your interest quarterly, half-yearly, or yearly.
• You can withdraw your funds early, but a penalty will be applied if you do so before the agreed-upon time.
• Nominees can be added at any time.

These Karnataka Bank Fixed deposit features are focused on customers' needs and give you an edge on your investment.

Bonus Tip: Do you know? If you face any issues related to your FD and are unsure of what to do, don't worry. The Karnataka Bank Customer Care officer will be happy to assist you. Send a "Hi" to +91 9632188999. You can call 1800 425 1444 (Toll-free within India), 1800 572 8031 (Toll-free within India), and 080-220 21555 (NRI).

Comparison of Karnataka Bank FD Rates with Other Banks

How do we know that the Karnataka Bank Fixed Deposit is Best for us? The answer is to compare the Karnataka Bank Fixed Deposit interest rate with that of other banks. 

Here is the comparison of Karnataka Bank Fixed Deposit with other banks:
 

You can compare the Fixed Deposit interest rate with that of other banks and choose the best schemes according to your financial goals in Karnataka Bank.

Eligibility Criteria & Required Documents for Karnataka Bank FD Interest Rates

If you want to open a Karnataka Bank Fixed Deposit Account, you have to meet the eligibility criteria and provide some required documents. Here is the list of documents for the Karnataka Bank Fixed Deposit:

• Indian Resident
• PAN Card
• Aadhaar
• Passport
• Voter ID
• Utility Bills
• Rental Agreement

If you have these documents, you may be eligible for a Karnataka Bank Fixed Deposit.

Here is the list of eligibility criteria for Karnataka Bank Fixed Deposit:

• Certificate of incorporation
• PAN 
• Mobile Number
• Electricity Bill
• Cancel Cheque
• Recent Photograph
• Form 60

These eligibility and documentation requirements apply to the Karnataka Bank Fixed Deposit. 

What are the Tax Implications of Karnataka Bank FD?

The Karnataka Bank charges a 10% interest rate on Karnataka Bank fixed deposits, as per Section 194A of the Income Tax Act. 

The savings scheme permits annual investments ranging from ₹100 to ₹1,50,000. It aims to facilitate capital growth and reduce tax liabilities. The scheme provides prompt issuance of deposit receipts and maintains a fixed five-year investment term.

Karnataka Bank FD Premature Withdrawal & Closure Rules

The interest rate on premature withdrawal of term deposits will be paid at the rate applicable to the amount and period the deposit remained with the bank, not at the contracted rate. 

The following penalties apply to premature withdrawal of term deposits:

i. Domestic Term Deposits:

(a) The Bank will inform depositors about any penalties for early withdrawal when the deposit is accepted.

(b) If a term deposit is split at the request of claimants of deceased depositors or joint account holders, no penalty will be charged for early withdrawal as long as the period and total amount of the deposit stay the same.

change.

(c) A penalty of 0.50% on the applicable rate will be charged for early closure

of term deposits below ₹2 crore.

(d) A penalty of 1% on the applicable rate will be charged for early closure of deposits of ₹2 crore and above. The applicable rate is the interest rate for the period the deposit was with the Bank or the contracted rate, whichever is lower.

has remained with the Bank or contracted rate, whichever is less.

(e) The Bank offers Flexi Deposit accounts, where no penalty interest is charged for premature closure.

These are the Karnataka Bank premature withdrawal and closure rules.

How to Invest in Karnataka Bank FD?

These are the steps to open a Fixed Deposit Account in Karnataka Bank. Here are the steps:

Step 1: Visit the Karnataka Bank branch closest to you. 

Step 2: Share your basic information and have your documents ready

Step 3: Karnataka bank branch officials notify you when your account is opened.

You can apply for the Karnataka Bank FD using the following methods.

Conclusion

The Karnataka Bank offers a fixed deposit account for Indian people, which guarantees a return unaffected by the stock market, and you can open multiple fixed deposit accounts in the Karnataka Bank.

You can open a Karnataka Bank fixed deposit account with a minimum of ₹100, and there is no maximum limit. You can also open a joint account in the Karnataka Bank.

FAQs

What is the highest FD rate in Karnataka Bank?

You can get 6.65% in the 555-day special schemes, and for senior citizens, it's 7.05%.

Is Karnataka Bank FD safe?

Yes, Karnataka Bank is one of the trusted banks in India.

What is the interest rate on a ₹1,00,000 FD with Karnataka Bank?

You can get 6.50% if you invest ₹1,00,000 in Karnataka Bank, which means you receive ₹6,500 per year.

Can I get a loan against my Karnataka Bank FD?

Yes, you can get a loan against your fixed deposit with Karnataka Bank.

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.