Karur Vysya Fixed Deposit Rate

0 Reviews

Write Review

Karur Vysya Bank Fixed Deposit Rate

Karur Vysya Fixed Deposit Rate - FD Rate in India

A Fixed Deposit (FD) is one of the most sought after savings instrument in India. Investors are pre-disposed towards FDs for the higher rate of interest it yields (when compared to a savings account). It is considered to be a safe, low-risk and reliable form of investment which is free from market risks volatility. As with any other investment instrument, opening an FD has its own merits and demerits.

Merits:

  • Money can be deposited for a period that ranges from 7 days to 10 years.
  • Opening an FD is the simplest mode for investment, as it requires simple documentation.
  • You can open an FD account online in minutes.
  • Tax saving schemes are available.
  • Safe form of investment with negligible risks.
  • Creates a habit of savings as the money cannot be withdrawn.

Demerits:

  • The money deposited in an FD cannot be withdrawn before maturity, except on payment of a penalty. Yet, FDs are among the more liquid investments.
  • The rewards are proportionately low when compared to investing in the stock market, for example.
  • Tax is deducted in line with your bracket. Interest you earn from your FD is not tax-free.
  • The tax saving FD schemes have a lock-in period of 5 years before they can be withdrawn, making it a non-liquid investment.

Fixed Deposit Rates:

The Banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, depending on the tenure and principal amount among other factors. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened. Investing in an FD account becomes an attractive investment option if you have idle money you wish to invest.

Apart from banks, NBFCs and corporates too offer fixed deposits.

Karur Vysya Bank deposit rates

The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank.Karur Vysya Bank Interest Rates typically ranges from 5%-8% per annum.

The interest earned can be paid in three ways: Simple interest paid on maturity of the deposit, Interest paid on monthly basis (at discounted rate) or quarterly basis. You can choose which kind of interest payout you want.

Karur Vysya Bank FD rates

Following is an overview of Karur Vysya Bank Term Deposit Rates and Karur Vysya Bank Short-Term Fixed Deposit Interest Rates.

Karur Vysya Bank Interest Rates on Fixed Deposits 2015 – 2016:

(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 Deposit Interest Rates

Maturity Period Interest rate for amount Less than Rs. 1 crore
7 Days to 14 days 5.50%
15 Days to 30 days 5.50%
31 Days to 45 days 6.00%
46 Days to 90 days 6.50%
91 Days to 180 Days 7.50%
181 Days to 270 days 7.35%
271 Days to less than 1 year 7.35%
1 year to less than 2 years 7.35%
2 years to less than 3 years 7.35%
3 years and above 7.35%
KVB - Tax Shield 7.35%

Interest Rates on NRE Deposits

Tenure Interest Rate
1 year to less than 2 years 7.35%
2 years to less than 3 years 7.35%
3 years and above 7.35%

Karur Vysya Bank FD Interest Rates for Senior Citizens

Karur Vysya Bank offers special Senior Citizen FD Rates which are generally marginally higher than the rates on a regular FD. It provides seniors with that extra buffer in their golden years. The Maximum limit for Senior Citizens deposits is Rs.5 crores. Following is an overview of the interest rates:

Maturity Period Senior Citizen Interest rate
1 year to less than 2 years 7.85%
2 years to less than 3 years  7.85%
3 years to 5 years 7.85%
KVB - Tax Shield Deposits  7.60%

How to Calculate Karur Vysya Bank Fixed Deposit Interest

You can use the Karur Vysya Bank FD Calculator to help you identify how much interest you will earn on your principal amount. All you need to do is enter the following:

Deposit amount

Period of the FD (in months), and,

The rate of interest

The calculator will do the number crunching and present you with a breakup of the interest earned and the maturity amount. Using a calculator provides you with instant, error-free and accurate results. It also helps you identify the maturity amount and the amount of money you actually want to inves and the tenure You can use the calculator for as many times as you want with different variations and combinations of amount and tenure.

Alternatively, there are several online sites that allow you to instantly calculate the interest earned on an FD. You can use these online resources to calculate the interest accrued on your Karur Vysya Bank FD. You can also calculate the interest earned and the maturity value on the principal amount using the following formula.

Calculate Karur Vysya 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

Breaking a fixed deposit might come in handy for an emergency like a medical crisis. In such cases the bank allows partial or complete withdrawal of the deposit amount before completion of its maturity tenure. The bank typically charges a penalty which is communicated to you at the time of application of FD Deposit. For closure of deposits up to Rs.1 crore, a penalty of 1% is levied. For term deposits above Rs.1 crore, pre closure penalty norms are applicable.

Karur Vysya Bank FD – FAQS

What is the minimum and maximum period for a fixed deposit in Karur Vysya Bank?

The minimum period is 15 days and the maximum is 10 years.

What is the minimum amount required to open an FD with KVB?

Minimum Amount that can be invested is Rs.100. There is no cap on the maximum amount.

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

All resident individuals including minors and Hindu undivided families are eligible to open an FD account with Karur Vysya Bank. Also eligible are Trusts, Partnership firms, Companies, Associations etc.

What is the documentation required for individuals to open an FD account in Karur Vysya?

The documentation for opening an FD account in India is fairly simple. You would be required to submit a filled in Application Form with a photograph along with supporting documents for Identity proof, Address proof, Signature proof and Age proof (for senior citizens).

How is the interest paid?

Interest is payable monthly, quarterly or half yearly as desired. Keep in mind that monthly interest is permitted at a discounted rate.

Customer Reviews