Karnataka Bank - Fixed Deposit Interest Rates

As of August 2026, Karnataka Bank offers a highest interest rate of 7.00% p.a. for general citizens and 7.40% p.a. for senior citizens on fixed deposits.

Yes, Karnataka Bank is a registered bank regulated by the RBI. Your deposits (up to ₹5 Lakhs per depositor) are insured by DICGC, which covers both principal and accrued interest.

The minimum tenure for a fixed deposit with Karnataka Bank starts from 7 Days. Longer tenures may offer higher interest rates.

Yes, Karnataka Bank offers an additional benefit of up to 0.40% p.a. over the general citizen rate for senior citizens (aged 60 and above).

Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS is deducted at 10% if total interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.

Karnataka Bank charges a 0.50% penalty on premature withdrawal for deposits below ₹2 crore, and 1% for deposits between ₹2 crore and ₹25 crore. Deposits above ₹25 crore (and government deposits above ₹10 crore) carry zero premature penalty. Flexi deposits also attract no early withdrawal penalty.

As of August 2026, Karnataka Bank offers special FD rates for 555 days at 7% (7.4% for Seniors).