100-Year-Old Private Sector Bank Revises FD Rates: Details Inside

A renowned 'A' Class Scheduled Commercial Bank in India, Karnataka Bank Limited was established on February 18th, 1924 in Mangaluru. The bank has revised its interest rates on fixed deposits (FDs) of less than Rs 2 Cr. After the modification, the bank is currently providing interest rates ranging from 3.5% to 5.80% for terms ranging from 7 days to 10 years. The bank is giving a maximum return of 7.25% on a 444-day deposit term. According to the bank's official website, the new interest rates take effect on October 3, 2023.

Karnataka Bank FD Rates

The bank is now giving an interest rate of 3.50% on deposits maturing in the next 7 days to 45 days, while Karnataka Bank is also offering an interest rate of 4.00% on deposits maturing in the next 46 days to 90 days. On deposits held for 91 days to one year, Karnataka Bank is giving an interest rate of 5.25%, and on deposits held for one year to two years, the bank is offering an interest rate of 6.95%. Deposits with maturities between 2 years and 5 years will now earn interest at a rate of 6.50%, while those with maturities within 444 days will now earn interest at a rate of 7.25%. The bank will pay 5.80% interest on FDs with terms between 5 and 10 years.

Karnataka Bank is offering an additional rate of 0.40% higher than the standard rates for senior citizens only for tenure of 1 to 5 years and 0.50% additional over the general rate for tenure of 5 to 10 years.

Regarding the premature withdrawals of domestic term deposits, 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 Rs 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."