KSFE FD Interest Rate – Tenure-Wise Returns & Investment Details

Key Highlights
 

• KSFE FD offers attractive returns of 7.25% to 8.00% per annum, and senior citizens earn an extra 0.50%.
   
• Investors can choose a flexible tenure of 1 to 3 years.
   
• You can borrow up to 75 to 90% against your FD.
   

KSFE FD interest rates offer safe and attractive returns for investors, with senior citizens earning an extra 0.50%. 

For example, when Anitha invested ₹1,00,000 in a 2-year KSFE FD, she received monthly interest, giving her a steady income. 

This blog explains all aspects of KSFE FD, including types, features, eligibility, tax implications, and premature withdrawal rules.

KSFE FD Interest Rates 2025

KSFE FD offers safe investment options with attractive returns. The interest rates range from 7.25% to 8.00% per annum. You can invest for a tenure of 1 to 3 years. If you deposit more than ₹10,000, you can withdraw interest monthly, which increases your overall returns. KSFE FD also gives senior citizens higher interest rates to help them earn more.

In 2025, KSFE FD remains a reliable option for those seeking a steady income and secure savings.

Types of KSFE FD Interest Rates Schemes

KSFE offers different fixed deposit schemes to meet the needs of regular investors, chitty subscribers, and short-term savers. Each scheme provides flexible options with attractive returns.

• KSFE Regular Fixed Deposit: This scheme allows monthly withdrawal of interest for deposits above ₹10,000. Tenure ranges from 1 to 3 years.
   
• KSFE Chitty Security Deposit in Trust: This scheme is designed for chit fund subscribers. They can deposit prize money in part or in full against future liability and withdraw it later with security or repayment. The tenure ranges from 30 days after chit opening to chit termination.
   
• KSFE Short-Term Deposit: Individuals and institutions can park funds temporarily with tenure from 30 days to 364 days. The minimum deposit is ₹5,000, with renewals and premature closure options available.
   
• KSFE Nettam Fixed Deposit: This deposit requires a minimum of ₹25,000 and has a fixed tenure of 400 days.

KSFE FD schemes offer safe and flexible choices, making them suitable for both short-term and long-term financial goals.

Bonus Tip: Keep digital copies of your KSFE FD documents and use the online portal for easy tracking and management of your deposits.

Features and Benefits of KSFE FD

KSFE FD offers useful features and benefits for investors:

• Senior citizens earn an additional 0.50% interest on their deposits.
• You can take a loan against your fixed deposit, normally up to 75% of the deposit amount.
• In exceptional cases, the branch manager can approve a loan of up to 90% using discretionary power.
• The loan carries an interest rate 2% above your KSFE FD rate.

These features make KSFE FD a secure investment while giving you financial flexibility when needed.

Comparison of KSFE FD Rates with Other Banks

Fixed deposits remain a safe way to save and grow money. Different banks and finance companies in India offer varied FD interest rates, so it is important to compare before investing. The following table shows how KSFE FD rates stand against other major banks:

From this comparison, KSFE FD offers attractive returns, especially for senior citizens, making it a safe and rewarding investment option.

Eligibility Criteria and Required Documents for KSFE FD Interest Rates 

KSFE FD interest rates attract many investors across Kerala, but you must meet certain criteria to open an account. Residents of India can invest in KSFE FD, while specific schemes, like the Vandanam Deposit Scheme, require applicants to be 60 years or older.

Required Documents
When you visit a KSFE branch to open a fixed deposit, you must submit:

• Filled-in Application Form: Provided by the KSFE branch.
• Identity Proof (any one): PAN Card, Aadhaar Card, Passport, Driving Licence, or Voter ID Card.
• Address Proof (any one): Aadhaar Card, Passport, Driving Licence, or Voter ID Card.
• Passport-sized Photographs: Required for the application.

By fulfilling these eligibility requirements and submitting the necessary documents, you can easily invest and earn from attractive KSFE FD interest rates.

Tax Implications on KSFE FD

The government taxes the interest earned on a KSFE FD, not the principal amount. For the financial year 2025-26, authorities deduct TDS (Tax Deducted at Source) at 10% if your annual interest exceeds ₹50,000, or ₹1,00,000 for senior citizens. 

If you do not provide your PAN, TDS is 20%. You can avoid TDS by submitting Form 15G (for non-senior citizens) or Form 15H (for senior citizens) if your total taxable income is below the exemption limit.

By understanding these tax rules, you can plan your KSFE FD investments efficiently and avoid unnecessary deductions.

KSFE FD Premature Withdrawal and Closure Rules

KSFE FD allows investors to withdraw funds before maturity, but a penalty usually applies. The interest you receive will be lower than the contracted rate for the period your deposit stayed with KSFE FD.

Steps to Take:

• Review Your FD Agreement: Check the original terms and conditions of your KSFE FD for accurate details on premature withdrawal.
• Contact KSFE directly: Speak to KSFE through their website, customer care, or a local branch to know the current penalty, interest adjustment, and required documents.
• Understand the Process: Confirm the steps for closure, which may include submitting a withdrawal form or other documents.
• General Rules and Penalties.
• Penalty Charges: KSFE typically reduces the interest rate (0.5% to 1% lower) for premature withdrawals.
• Loss of Interest: You do not earn the full contracted interest if you close the KSFE FD early.
• Minimum Period: Some withdrawals may have a minimum period (e.g., 7 days) where no interest is paid.
• Online vs. Offline: You can close your KSFE FD online (if opened online) or offline by visiting a KSFE branch.

By following these rules, you can manage your KSFE FD withdrawals efficiently, while also understanding the associated penalties and procedures.

How to Invest in KSFE FD?

Investing in a KSFE FD is simple and convenient, whether you are a first-time investor or a regular saver.

Step 1: Visit the official website of KSFE.
Step 2: Scroll down to the “Fixed Deposit” section. Click on it and then select the “Enquire” button.
Step 3: Fill in the enquiry form with your details and click “Submit”.

After submitting the form, KSFE will guide you through the process to open your FD account. By following these steps, you can easily start earning safe and attractive returns with KSFE FD.

Conclusion

KSFE FD offers secure and attractive returns for both short-term and long-term investors. By understanding the interest rates, eligibility, and features, you can plan your investments wisely and make the most of your savings with KSFE FD.

FAQs

1) Why is KSFE considered the number-one chitty company in Kerala?

Answer: KSFE is widely regarded as the leading chitty company in Kerala because it is fully owned by the Kerala state government. This government backing increases public trust, ensures compliance with the Chit Funds Act, and provides greater transparency compared to private chit operators. Its long history, strong branch network, and regulated operations contribute to its reputation.

2) What is the highest bank interest rate for FD in India?

Answer: The highest FD interest rates in India are usually offered by small finance banks and some private banks, depending on tenure and deposit amount. Rates vary over time, with senior citizens often receiving higher returns. Public sector banks generally offer lower but more stable rates.

3) How much returns can be expected in chit funds?

Answer: Returns from chit funds are not fixed and depend on factors such as auction discounts, commission charges, and when the subscriber receives the lump sum. Chit funds are generally better viewed as a savings or borrowing mechanism rather than a high-return investment, as actual returns may be lower than bank FDs.

4) What are the advantages and disadvantages of KSFE chitty?

Answer: Advantages include government backing, legal regulation, disciplined monthly savings, and access to lump-sum funds without traditional loan interest. Disadvantages include lower returns compared to other investment products, mandatory monthly commitments, and limited flexibility if funds are needed urgently.

5) What are the pros and cons of joining KSFE chitty?

Answer: Pros include safety, reliability, and suitability for people who want forced savings or planned funding for future expenses. Cons include opportunity cost, as money locked in a chitty could earn higher returns elsewhere, and reduced benefit if the subscriber receives the amount toward the end of the tenure.

6) What are people’s opinions on KSFE chittis?

Answer: Public opinion is mixed. Many people trust KSFE due to its government ownership and use it as a disciplined savings tool. However, financially savvy users often point out that KSFE chitties are not ideal for wealth creation and should be chosen based on cash-flow needs rather than return expectations.