KVB Fixed Deposit

Karur Vysya Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on Karur Vysya Bank FDs is higher than their savings account. One can invest in Karur Vysya Bank FDs through both online and offline modes with just a minimum investment of INR 100. This article covers Karur Vysya Bank FD, its features and interest rates in detail.

Karur Vysya Bank Fixed deposit schemes

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

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 Sakvb fd interest ratesving 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

Key Features of Karur Vysya Bank Fixed Deposit Schemes

• Tenure: The tenure of a Karur Vysya Bank FD ranges from seven days to ten years. One cannot change the tenure of their KVB FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Karur Vysya Bank FD is INR 100. However, there is no limit on the maximum amount of investment in KVB FD.
• Karur Vysya Bank FD rates: Karur Vysya Bank FD rates range between 3.5% and 5.75% for regular citizens and between 3.5% and 6.15% for senior citizens. Moreover, Karur Vysya Bank offers an additional 0.5% interest to senior citizens on their FDs for a tenure above one year. KVB pays interest in monthly, quarterly or half-yearly intervals as per the choice of the investor.
• Premature withdrawal: All Karur Vysya Bank FDs can be withdrawn prematurely except for the tax-saving FD. The penalty for withdrawing deposits below INR 2 crore Karur Vysya Bank charges a penalty of 1% on the contracted interest rate. For deposits above INR 2 crore, the penalty will be as per the KVB norms.
• Loan against FD: Karur Vysya Bank offers loans against their FDs. Investors can get loans without breaking their KVB FD. Also, the interest rate for the loan will be 1%-2% above the KVB FD interest rate.
• Nomination facility: Karur Vysya Bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Karur Vysya Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all Karur Vysya Bank deposits. The scheme covers all Karur Vysya Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a Karur Vysya Bank FD once it has commenced. However, they can open a fresh Karur Vysya Bank FD with the new amount.

How to open a Karur Vysya Bank FD deposit account?

One can open a KVB Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a KVB FD account through internet banking:

• Login to the KVB netbanking account.
• On the navigation tab under ‘Personal’, select the type of deposit you want to invest in.
• On the right-hand side of the screen, click on ‘Apply now
• Fill in all the necessary details in the KVB account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Through Mobile App

KVB DLite & Mobile Banking App

• The following steps will guide in opening an FD account through KVB DLite & Mobile Banking App:
• Download the KVB DLite & Mobile Banking App
• Login to your KVB account.
• Under ‘Services’, click on ‘Deposits’ and select the type of deposit.
• Fill in all the necessary details in the KVB FD account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Offline KVB FD Opening

To open a KVB FD account offline, one has to visit the nearest KVB branch. Fill the KVB FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, Karur Vysya Bank will provide an FD receipt.

Documents required to Open a Karur Vysya Bank FD

To open a Karur Vysya Bank fixed deposit scheme, one would need the following documents:

• Karur Vysya Bank Fixed Deposit application form
• Passport size photographs
• Identity proof (Passport, PAN Card, Voter ID, Driving License, Government ID Card, Senior Citizen ID Card)
• Address proof (Passport, Aadhar Card, Utility bills, Bank statement with Cheque)

Eligibility to Open a Karur Vysya Bank FD

All resident individuals, HUFs, trusts, partnership firms, and companies are eligible to open a KVB FD account.

Does Karur Vysya Bank offer Recurring Deposits?

Karur Vysya Bank offers recurring deposits to its depositors. Karur Vysya Bank recurring deposits have a minimum tenure of six months and a maximum tenure of 10 years. Depositors can open an RD account either by going to the Karur Vysya Bank branch or online using internet banking. The minimum investment in Karur Vysya Bank RD is INR 1000 and thereafter in multiples of INR 10. The interest rate for regular citizens on Karur Vysya Bank RDs is in the range of 6.9% to 7%, and for senior citizens, it is in the range of 6.9% to 7.5%.

Is FD interest taxable?

Only investment in Karur Vysya Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other Karur Vysya Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from Karur Vysya Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from Karur Vysya Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Karur Vysya Bank, then the TDS rate will be 20%.

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