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Karur Vysya Bank Recurring Deposit Schemes

Karur Vysya Bank Recurring Deposit Rate

Recurring deposit schemes offered by Karur Vysya Bank are well suited for individuals that earn money through interest. The schemes help regular earners save more money, with the aid of interests. This saving scheme is provided to multiple customers e.g. Individuals, Firms and Corporations, NGOs.

There are two types of recurring deposit schemes offered by Karur Vysya Bank. They are KVB Manimala and KVB Money Mala Plus. Following are the features of both the recurring deposit schemes.

KVB Manimala

This recurring deposit account helps individuals deposit a fixed amount of money every month until a certain period. The invested amount earns a good amount of interest at the loan maturity. The features of the scheme are-

  • The minimum investment period is 6 months and maximum investment period is 120 months
  • This account can be opened with the minimum investment of Rs. 100 and in multiple of Rs.25 thereafter
  • Loan is available against the deposited amount
  • You can withdraw the deposited amount subject to applicable norms
  • Nomination facility is available
  • A penalty of Rs.1.50 charges for late payments. It can be higher for deposits over 5 years
  • The account can be opened by individuals, minors, HUF, trust, partnership firms, companies, associations etc.

KVB Money Mala Plus

This is a flexible recurring deposit account that provides you the option of funds in excess of the committed amount. The features are -

  • The investment period ranges between 12 to 36 months
  • No penalty is levied on late payments
  • The minimum investment amount is Rs.1000 and there is no cap on the upper limit
  • Flexibility to remit the amount any time of the month
  • Loan facility available up to 75% core amount
  • Rate of interest is equal to term deposits

Benefits of a Karur Vysya Bank Recurring Deposit Account

  • You can get interest as high as 7.00%
  • Recurring deposit accounts are convertible to fixed deposit accounts at the time of maturity.
  • You are eligible for loans against the amount in your Recurring Deposit.
  • This account is suitable for low-income earners. A small amount of money is required to open a Karur Vysya Bank recurring deposit account.
  • Senior citizens get an interest rate of 7.50% significantly higher than the under-class accounts.

Karur Vysya Bank Recurring Deposit Interest Rates

Karur Vysya Bank offers competitive interest rates, which makes Karur Vysya Bank a popular choice among other banks. The rates given here are subject to change by the bank authorities at any time.

KVB Recurring Deposit Rates
TenureRevised interest (Less than 1 crore) (w.e.f. 07.01.2019)
7 Days to 14 Days5%
15 Days to 30 Days5%
31 Days to 45 Days5.50%
46 Days to 90 Days6%
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 Years7.25%
3 Years and above7%
KVB - Tax Shield7%

Kindly contact the nearest branch for deposits above Rs.1 crore.

Penal Interest on pre-closure of deposits:

  • Up to Rs.1 crore of deposit – Penalty of 1% from applicable ROI
  • Above Rs.1 crore of deposit – Pre-closure penalty norms applicable
  • Interest will be calculated at the rate applicable for the period the deposit has actually remained with the bank. The rates are subject to change without notice

Karur Vysya Bank Recurring Deposit Calculator

Karur Vysya Bank maturity amounts are defined by three major factors:

  • The rate of interest
  • Deposit of interests
  • Period of deposit

Rate of Interests

You get higher interest rates on long-term tenures and lower rates on short-term tenure. Tenure rates are available from months to years.

Deposit of Interests

This is the actual amount of money that is deposited into an account. Mentioned earlier, the least amount allowed is Rs. 100.

Advantages of opening a Karur Vysya Bank Recurring Deposit account

  • Recurring Deposit accounts are opened with a minimum about of RS. 100, making it suitable for low-income earners.
  • Loans/overdrafts are available
  • You get a maximum interest rate of 7%. This is higher than what most banks have to offer
  • Senior citizens get a 7.50% higher rate
  • Small amounts of money can be deposited regularly

Disadvantages of opening a Karur Vysya Bank Recurring Deposit account

  • Recurring deposit rates are higher during inflation.
  • During a change in Cash Reserve Ratio (CRR) and report rate, recurring deposits are affected
  • Karur Vysya Bank reduces their recurring deposit rates during high liquidity and low demands in the market system.

Karur Vysya Bank Recurring Deposit FAQs

1. Can early withdrawals be made?

Yes, premature withdrawal is allowed. But a penalty will be deducted the by bank during the time of the withdrawal.

2. Does Karur Vysya Bank offer nomination facility?

Yes, it is available for both individual and joint accounts. Only one nominee is permitted per account.

3. Is it possible to transfer to a Fixed Deposit (FD) account?

Yes, it is. When your recurring deposit account attains maturity, you can make a request to your bank for a fixed deposit account. It is also a good way to invest.

Karur Vysya Bank Recurring Deposit Rate - Customer Reviews

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10 Oct 2020

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