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Karur Vysya Bank Fixed Deposit Rate

What is a fixed deposit?

A fixed deposit is a form of investment that is used by many individuals wherein, one can deposit a certain amount of money for a specific period and earn an interest on the same. Fixed deposits are offered to individuals by many banks and Non-Banking Financial Companies (NBFCs). The tenures on fixed deposits range from 7 days to 10 years or more in some cases. The money deposit for this duration earns an interest and is given back to the customer after the tenure has ended. This is a very beneficial financial tool.

You can deposit your lump sum amount at Karur Vysya Bank’s fixed deposit account for a certain period that typically ranges from 15 days to 10 years. The minimum amount that can be deposited in the Karur Vysya Bank account is Rs.100. The bank offers competitive interest rate on fixed deposits. The interest earned on the fixed deposit will attract the TDS as applicable. If the interest amount is not claimed by the depositor, it will not be eligible for any further interest.

Apart from the ordinary fixed deposit scheme, Karur Vysya Bank provides two different fixed deposit schemes catering to the needs of the customers. One can choose a fixed deposit scheme that is convenient based on personal needs. The two schemes are KVB Tax-Shield and Rainbow Deposits.

Karur Vysya Bank’s fixed deposit

Karur Vysya Bank Fixed Deposit Rate

KVB’s fixed deposit scheme provides one with a benefit of getting interest at regular intervals, either every six months or quarterly or monthly. This is beneficial for individuals who rely on a regular interest income. It can be opened by individuals, Trusts, companies, associations and more. The minimum amount that needs to be invested is Rs.100/- and there is no restriction on the maximum amount. The tenure for the deposit ranges from 15 days to 10 years. These deposits are eligible for only simple interest. TDS is applicable on the interest earned.

KVB Tax-Shield

Deposits made under this scheme qualify for tax benefits as per Section 80C of the income tax act up to Rs.1.50 lakhs. This scheme is for a fixed tenure of 5 years. The minimum amount that can be invested is Rs.100/- whereas the maximum amount is Rs.1.50 lakhs only. Premature closure is not allowed and so this deposit is under lock for 5 years. If it is a joint account, then the deduction under Section 80C is applicable only for the first holder of the deposit.

Rainbow deposits

Under this scheme, the customer gets a good mix of the features of a saving bank account and a fixed deposit account that offers high liquidity with maximum returns. After the customer retains a balance of Rs.15,000/- in the savings account, amounts in multiples of Rs.5000/- accumulated over the balance of Rs.15,000/- will be taken to the fixed deposit portion for a period of 91 days on Sundays at the end of the day. It also provides free accident insurance (death) with a coverage of Rs. 1 lakh. Only simple interest at rates applicable on the date of transfer of the amount will be payable.

Interest Rate on Karur Vysya Bank’s Fixed Deposit

The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. Karur Vysya Bank’s interest rates typically ranges from 5% to 7% per annum.

The defining criteria for a fixed deposit is that the money cannot be withdrawn before maturity, unless on payment of a penalty. Once the deposit matures, the bank credits the original amount plus the interest earned to the bank account specified when the FD is opened. The money deposited earns the same fixed rate of interest throughout the entire FD period (except for certain kinds of floating rate deposits).

Karur Vysya Bank Fixed Deposit rates

Following is an overview of Karur Vysya Bank’s Fixed Deposit Rates as of 07.11.2018

(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Karur Vysya Bank directly.)

Domestic Term Deposits (Card Rates):

Time BucketRevised interest (Less than 1 crore)
7 Days to 14 days5.00%
15 Days to 30 days5.00%
31 Days to 45 days5.50%
46 Days to 90 days6.00%
91 Days to 180 Days6.90%
181 Days to 270 days6.75.%
271 Days to less than 1 year6.75%
1 year to less than 2 years7.25%
2 years to less than 3 years7.00%
3 years and above7.00%
KVB - Tax Shield7.00%

Flexi Term Deposits:

Time BucketRevised rate
300 days6.50%

Bulk Term Deposits:

Time BucketRevised interest (Rs.1 crore Above and Less than 10 Crores)
7 Days to 14 days5.00%
15 Days to 30 days5.50%
31 Days to 45 days6.50%
46 Days to 90 days6.50%
91 Days to 180 Days7.00%
181 Days to 270 days7.00%
271 Days to less than 1 year7.00%
1 Year7.40%

Karur Vysya Bank Fixed deposit for senior citizens

Residents who are above 60 years of age are eligible for this scheme. It offers both cumulative and non-cumulative options. The tenures for these deposits are 1 year to a maximum of 5 years.

Senior Citizens Deposits (Card Rates):

Time BucketRevised rate
1 year to less than 2 years7.75%
2 years to less than 3 years7.50%
3 years to 5 years7.50%
KVB - Tax Shield Deposits7.00%

Senior citizen Rates not applicable to NRI.

How to Calculate Karur Vysya Bank Fixed Deposit Interest?

Karur Vysya Fixed Deposit Rates

You can use online resources to calculate the interest accrued on your Karur Vysya Bank FD. There are several online sites that allow you to instantly calculate the interest earned. All you have to do is enter the FD amount, tenure and rate of interest and the calculator will do the hard number crunching and present you with a breakup of the interest earned and the maturity amount

You can enter as many combinations as you want, and the calculator will give you instant and accurate results.

You can also calculate the interest earned and the maturity value on the principal amount using the following formula.

The following is the formula to calculate the interest earned in a Fixed Deposit account:

Calculate Karur Vysya Bank FD Rate

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

Karur Vysya Bank FD Premature Withdrawal Penalty

Up to Rs.1 crore of deposit earns a penalty of 1% from applicable ROI.

Above Rs.1 crore of deposit has pre-closure penalty norms applicable.

Interest will be calculated at the rate applicable for the period the deposit has remained with the bank. The rates are subject to change without notice.

Karur Vysya Bank FD – FAQS

1. What is the eligibility for opening an FD account with Karur Vysya Bank?

A fixed deposit can be opened by Individuals, HUF, Trust, Partnership firms, Companies, Associations with Karur Vysya Bank.

2. For how long can I keep my deposit?

You can open a fixed deposit account for any period ranging from 7 days to 10 years. Upon maturity of your deposit, you are paid your original deposit amount plus the interest accumulated.

3. Can I deposit additional amount in my FD account?

No. It is possible to deposit the amount only once, that is at the time of opening the account. If you want to invest any additional amounts, then you will need a new FD account.

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