FD Interest Rates: Karnataka Bank Revises FD Interest Rates: Check Latest Interest Rates

Karnataka Bank has revised interest on fixed deposits for amounts below Rs 2 crore. The interest rates will come into effect on April 1, 2022. The bank now offers a maximum interest rate of 5.50%.

On term deposits due in one to two years, the bank offers an interest rate of 5.10%. Clients will now earn 5.40% on term deposits with a term of 2-5 years and 5.50% on deposits with a term of 5-10 years. The current interest rates on fixed deposits under Rs 2 crore are briefly discussed below.

Source: Bank website

According to the website, “Additional 0.40% on top of the general rate up to 5 crore included only under National FD and ACC schemes (no deposit to NRE/NRO/FCNR(B) accounts) for elderly residents only for durations of 1 to 5 years and 0.50% increase on the general rate for seniority of 5 to 10 years from 09.11.2020. The interest rate advantage for seniors for term deposits of less than 1 year is abolished on June 06, 2019.

Premature closure of domestic and NRE depots

Here is the penalty clause for premature closing of deposits on new deposits and renewals:

  • For term deposits below Rs.2 crore, premature closing will not incur a penalty.
  • For amounts, Rs 2 crore and above, a penalty of 1% on the applicable rate would be imposed. “Applicable rate” means the interest rate in effect at the time the deposit was made or the negotiated rate, whichever is lower.

If the deposit is closed prematurely for reinvestment, interest will be paid at the rate prevailing during the period the deposit was in the bank, without penalty for the amount reinvested, so long as the reinvested deposit remains in the bank for a period longer than the remaining period of the initial deposit.

Savings account interest rate

Interest rates on all savings bank accounts, including Non-Resident External (NRE) and Non-Resident Ordinary (NRO) Savings Accounts, per annum are between 2.75 and 4, 50% depending on the amount.

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