8 Mins

Karur Vysya Bank is one of the oldest banks in India. It carries 100+ years traditions, and it considers itself young and keeps adapting itself to modern-day technology. KVB fixed deposits schemes offer higher fixed deposit rates than their savings bank account. The bank also offers its investors the convenience to choose the intervals for receiving interest. In this article, we have covered Karur Vysya Bank fixed deposit and FD interest rates in detail.

KVB FD Rates 2021

Following is the table showing Karur Vysya Bank deposit rates for different tenures.

Karur Vysya Bank fixed deposit interest rates range between 3.5%-5.65% for regular citizens and 3.5% -6.15% for senior citizens with tenure varying between 7 days and 10 years. The Karur Vysya Bank FD rates are higher than their saving account rates. Furthermore, the senior citizens FD rate is higher than the regular citizens’ rate by 0.5%. Investors can also opt for receiving interest regularly through monthly, quarterly or half-yearly intervals.

The highest FD rate for KVB is 5.65% for a regular investor for the tenure of 3-10 years. Also, for the same tenure, the highest senior citizen FD rate is 6.15%.  Moreover, returns from KVB fixed deposits can be calculated using the KVB fixed deposit calculator.

TenureRegular FD Interest RateSenior Citizen FD Interest Rate
7 days to 14 days3.50%3.50%
15 days to 30 days3.75%3.75%
31 days to 45 days3.75%3.75%
46 days to 90 days3.75%3.75%
91 days to 120 days4.00%4.00%
121 days to 180 days4.75%4.75%
181 days to 270 days4.75%4.75%
271 days to 364 days5.00%5.00%
1 year to 1 year 364 days5.50%6.00%
2 years to 2 years 364 days5.50%6.00%
3 years to 10 years5.65%6.15%
Note: Karur Vysya Bank fixed deposit rates are subject to change

Key Features of KVB Fixed Deposits

KVB interest rates on fixed deposits are higher than a savings bank account. Following are the key features of KVB fixed deposits:

Tenure

The Karur Vysya Bank fixed deposit tenure ranges between 7 days to 10 years. Once invested, one cannot change the tenure of Karur Vysya Bank FD investment. However, one can opt for premature withdrawal of their Karur Vysya Bank fixed deposit. Furthermore, investors can close the existing FD and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount of investment in KVB FDs is INR 100. Hence, one can start their investment in Karur Vysya Bank fixed deposit at an amount as low as INR 100. Also, there is no limit on the maximum amount of investment. However, the maximum investment amount for tax saving deposits is INR 1.5 lakhs per annum.

KVB FD Interest Rates

The fixed deposit rate of interest in Karur Vysya Bank ranges between 3.5%-5.65%. Moreover, returns from KVB fixed deposits can be calculated using the KVB Bank fixed deposit calculator.

KVB FD Preferential Interest Rates

The Karur Vysya Bank FD interest rates for senior citizens are higher than those of regular KVB fixed deposit interest rates. KVB offers senior citizens an additional 0.5% of interest. Also,the rate of interest in Karur Vysya Bank for senior citizen fixed deposits ranges between 3.5%-6.15%.

Eligibility

To open a KVB deposit account, one has to be eligible. Following are the eligible individuals and entities.

  • Individuals
  • HUF
  • Trust and associations
  • Partnership firms
  • Companies

Documents required

To open an FD account with KVB, one would need the following documents.

  • Passport size photos
  • PAN Card
  • Identity proof (Aadhar Card, PAN Card, Driving License, Passport, Voter ID)
  • Age Proof (Birth certificate, Senior Citizen ID, matriculation certificate)
  • Address Proof (Water bill, electricity bill, gas bill, bank statement with cheque)

Additional Payments

It is not possible to deposit any additional amount in an existing KVB FD account. However, one can always invest in a fresh Karur Vysya Bank Fixed Deposit with the additional amount.

Tax and TDS

Investment in KVB Tax Saving Fixed Deposit qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Investors can claim the same while filing income tax returns. Also, no other fixed deposits qualify for tax deductions.

The fixed deposit interest earned is taxable. Also, the interest earned on KVB term deposits is taxable at their respective slab rates. Moreover, KVB cuts TDS at 10% if the interest income exceeds INR 40,000. For senior citizens, the TDS threshold limit is INR 50,000 per annum. Moreover, the 10% rate is applicable only if the PAN Card details are submitted. If the investor doesn’t disclose PAN details, then the bank will cut TDS at 20%.

To determine if the interest earned from Karur Vysya Bank Fixed Deposit is above or below the TDS threshold limit, one can use a Scripbox’s FD calculator available online. Also, to determine their tax liability one can use the Income Tax Calculator. Scripbox’s Income Tax Calculator is free to use and is available online and can be used to determine tax liability.

Safety and Convenience

Under the Deposit Insurance Scheme of RBI, DICGC insures all KVB deposits up to INR 5,00,000. Moreover, opening and managing KVB Bank FD investments is easy and convenient through their online portal.

Premature withdrawal of Karur Vysya Bank Fixed Deposit

The bank allows premature withdrawal of their fixed deposits. For deposits up to INR 2 crore, the penalty of 1% is applicable on the contracted rate of interest. For deposits above INR 2 crore, the bank norms will be applicable.

Nomination Facility

Depositors can nominate beneficiaries for their KVB term deposits.

Auto-Renewal of Karur Vysya Bank FD

KVB offers auto-renewal facility to depositors for their FDs.

Loan against FD and Overdraft in Karur Vysya Bank

KVB offers loans against their FD. This will help investors in meeting their liquidity requirements. Moreover, investors need not go through the entire process of applying for a fresh loan. Instead, they can directly take a loan against their existing fixed deposit investment. The rules of the bank apply while the loan is granted. The interest rate of the loan is usually 1-2% above the KVB FD rates.

Investors can take loans such as loan against property (home loan), education loans, business loans, etc., against Karur Vysya Bank fixed deposit. They can calculate the loan EMI using the loan EMI calculator. The loan EMI calculator also works as a personal loan EMI calculator, a home loan EMI calculator and car loan EMI calculator. The investor can also use the EMI calculator in multiple scenarios by changing the variables like personal loan interest rate, home loan interest rate and car loan interest rate.

Pan Card

A PAN card isn’t mandatory to open a Karur Vysya Bank fixed deposit account. Since PAN isn’t mandatory, there are a few implications for the same. The TDS will be cut at 20%, as per the regulations of section 206AA, instead of the regular 10%. Also, Karur Vysya Bank will not issue a TDS certificate. Moreover, all exemption certificates, including Form 15G/15H, will be invalid.

Requirement of savings account

Individuals need not have a Karur Vysya Bank account to open a fixed deposit account.

Types of Fixed Deposit Schemes offered by KVB

Following are the types of KVB deposit schemes:

  • Reinvestment Plan
  • Fixed Deposits
  • Senior Citizen Deposits
  • KVB Tax Saving Deposits

Types of Fixed Deposit Schemes: In Detail

Reinvestment Plan

The Reinvestment plan of KVB is also known as Tirumagal Tirumana Thittam (TTT). It is a long term investment plan that helps one plan their long term financial goals. The principal and the interest is paid on maturity.

  • Tenure: 6 months to 10 years
  • Minimum Deposit Amount: INR 100
  • Maximum Deposit Amount: No limit
  • Loan Facility: Available
  • Nomination Facility: Available
  • Premature Closure: Available, however, subject to certain terms and conditions.
  • Eligibility: Individuals, HUF, Trust, Partnership firms, Companies, Associations etc.,

Fixed Deposits

The Karur Vysya Bank fixed deposit scheme offers the convenience of receiving interest at regular intervals (monthly or quarterly or half-yearly). Also, the scheme is ideal for individuals who depend on regular interest income. However, the deposit offers only simple interest.

  • Tenure: 15 days to 10 years
  • Minimum Deposit Amount: INR 100
  • Maximum Deposit Amount: No limit
  • Loan Facility: Available
  • Nomination Facility: Available
  • Premature Closure: Available, however, subject to certain terms and conditions.
  • Eligibility: Individuals, HUF, Trust, Partnership firms, Companies, Associations etc.,

Senior Citizen Deposits

The Senior Citizens deposit scheme offers both cumulative and non-cumulative options for senior citizens. For senior citizen depositors, Karur Vysya Bank FD rates are high. In other words, the bank offers a preferential interest rate. Also, the interest rate of senior citizen FDs range between 3.15%-6.15%.

  • Age Group: For depositors of the age 60 years and above
  • Maximum Deposit Amount: To get a preferential interest rate, the maximum deposit amount is INR 3 crores
  • Loan Facility: Available
  • Nomination Facility: Available and compulsory
  • Premature Closure: Available, however, subject to certain terms and conditions.

KVB Tax Saving Deposits

The tax-saving scheme deposits qualify for tax benefits under Section 80C of the Income Tax Act, 1961. Also, for a financial year, the depositor can enjoy a maximum benefit of up to INR 1,50,000. The scheme offers both cumulative and non-cumulative deposit options.

  • Lock in period: 5 years
  • Minimum Deposit Amount: INR 100 and in multiples of INR 100 thereafter
  • Maximum Deposit Amount: INR 1,50,000
  • Loan Facility: Not available
  • Nomination Facility: Available

Does KVB offer Recurring Deposits?

Yes, KVB offers recurring bank deposit schemes. Hence, the depositors can invest a fixed amount every month and get a lump sum amount on maturity.

TenureGeneral RatesSenior Citizen Rates
180 days6.90%6.90%
181 days to 270 days6.75%6.75%
271 days to 364 days6.75%6.75%
1 year to 1 year 364 days7.00%7.50%
2 years to 2 years 364 days7.00%7.50%
3 years to 10 years7.00%7.50%
Note: The KVB RD rates are subject to change

Frequently Asked Questions

Is Karur Vysya Bank Nationalised?

No, Karur Vysya Bank is not a Nationalised bank. It is a privately held commercial bank.