Karnataka Bank RD Interest Rates

Karnataka Bank offers a variety of financial options to help businesses thrive, including working capital finance, term loans, and infrastructure finance. The bank's operations are divided into four main areas: treasury, corporate and wholesale banking, retail banking, and other financial services.

Among its vast range of banking services, the recurring deposit (RD) scheme is one of the most popular options. This web page looks into the Karnataka Bank's recurring deposit scheme, such as on interest rates, incentives, and other relevant elements that meet your financial needs

Table of Contents:

• ⇾ Karnataka Bank RD Interest Rate
• ⇾ Karnataka Bank RD Interest Rate Calculator
• ⇾ Calculating Karnataka Bank RD Interest Rate
• ⇾ Benefits of Karnataka Bank RD Interest Rate
• ⇾ Features of Karnataka Bank RD Rates
• ⇾ Steps to Open Karnataka Bank RD Account
• ⇾ Eligibility to Open Karnataka Bank RD Account
• ⇾ Document Required to Open Karnataka Bank RD Account
• ⇾ Premature Withdrawal of Karnataka Bank RD Account
• ⇾ Types of Karnataka Bank RD Account
• ⇾ Steps to Close Karnataka Bank RD Account Offline
• ⇾ FAQs

Karnataka Bank RD Interest Rate

On average, the bank provides different interest rates for deposits up to and including Rs.2 crore and for sums greater than Rs.2 crore up to Rs.10 crore.

The table below shows the interest rates for recurring deposit accounts of less than Rs. 2 crore for General Public:

The table below shows the interest rates for recurring deposit accounts of less than Rs. 2 crore for Senior Citizens:

Karnataka Bank RD Interest Rate Calculator

Recurring Deposit (RD) calculator helps you plan your investment better. You can use it to learn about interest rates and calculate the maturity sum for your savings.

Calculating Karnataka Bank RD Interest Rate

The maturity amount of your RD is governed by variables like duration, deposit amount, and interest rate. Before investing, use an RD calculator to accurately estimate your maturity amount. Various websites offer RD calculators for this purpose. Mentioned below is the formula for calculating the RD interest rate:

A = P x (1 + R/N)^(Nt)

Here

• A denotes the maturity amount
• P denotes the monthly installment amount
• R denotes the annual interest rate
• N denotes the compounding rate
• t denotes tenure

Benefits of Karnataka Bank RD Interest Rate

Opening an RD Account under Karnataka Bank RD’s competitive interest rate helps you secure your future financial well-being by helping you build a savings corpus.

• Opening an RD Account under Karnataka Bank RD’s competitive interest rate helps you secure your future financial well-being by helping you build a savings corpus.
• Offers interest rates similar to fixed deposits.
• Can be started with a low initial deposit.
• Receives a lump sum payment at maturity, including interest.
• Typically provides better interest rates than normal savings accounts.
• Provides variable tenure options to suit individual budgets.
• Provides a fixed return through regular recurring deposit interest rates.
• Some banks provide loan or overdraft capabilities against recurring deposit accounts, which improves liquidity choices.

Features of Karnataka Bank RD Rates

• Offers a secure way to deposit small amounts on a regular basis, making it suitable for those with a limited initial sum.
• Ideal for those with a stable income who may struggle to meet the minimum deposit requirement for a Fixed Deposit.
• Flexible tenure selection accommodates different financial goals and budgets.
• It Offers attractive interest rates comparable to Fixed Deposits while needing lower continuing investments.
• Offers a secure and low-risk investment opportunity.
• Stands out as a liquid investment, with easy access to cash and minimal penalty fees when needed.
• With recurring deposits, investors can steadily increase their savings over time, making them more accessible to a wider spectrum of people.

Besides, Karnataka Bank, you can also check RD interest rates offered by different banks & other related pages from the table below:

Steps to Open Karnataka Bank RD Account

You can contact customer service for assistance with your RD application. Alternatively, you can go to your nearest Karnataka branch and have a bank professional assist you with the process.

To open a Karnataka Bank RD account, you can follow these steps:

1. Visit the nearest Karnataka Bank branch: Locate the nearest Karnataka Bank branch in your area where you want to open the RD account.
2. Collect the RD account opening form: Request the RD account opening form from the bank executive or download it from the bank's official website.
3. Fill out the application form: Fill in all the required details in the RD account opening form, including personal information, contact details, nominee details, and the desired deposit amount and tenure.
4. Submit necessary documents: Along with the filled-out application form, you will need to submit supporting documents such as identity proof, address proof, passport-size photographs, and any other documents specified by the bank.
5. Deposit the initial amount: Deposit the initial amount required to open the RD account as per the bank's guidelines. You may also need to set up standing instructions for regular monthly deposits.
6. Complete the formalities: The bank may require you to complete additional formalities such as KYC verification and signature verification.
7. Receive your RD account details: After completing the account opening process, you will receive your RD account details, including the account number, maturity date, and interest rate.
8. Start making monthly deposits: Once your RD account is active, make regular monthly deposits as per the agreed-upon amount and tenure to accumulate savings over time.

Eligibility to Open Karnataka Bank RD Account

Karnataka Bank accepts RD accounts from a variety of entities, including individuals, Hindu Undivided Families, corporations, firms, societies, trusts, and government organisations.

1. - Non-Resident Indians living abroad
2. - Indian students studying in foreign countries
3. - Indians working on ships abroad
4. - Persons of Indian origin or Overseas Citizens of India
5. - Foreign passport holders with Indian heritage or married to Indian citizens

Document Required to Open Karnataka Bank RD Account

In case there are non- indian citizen for them they just need these following documents mentioned below :

• Indian Passport
• Overseas Resident Card
• Employment Visa
• Work Permit
• Student Visa
• Communication Address Proof
• Pan Card/Form 60

Premature Withdrawal of Karnataka Bank RD Account

The bank may authorize withdrawals before maturity at its discretion. However, it would levy penal interest rates on premature withdrawal of RDs beginning on December 1, 2022.

• Premature closure of deposits under ₹2 crore incurs a penalty of 0.50% of the applicable interest rate.
• Premature closure of deposits worth ₹2 crore or more incurs a penalty of 1.00% on the applicable interest rate.

The bank will not pay any interest if the NRE RD is prematurely closed or withdrawn within one year.

If you skip or are late in paying your instalments, you must pay a penalty of Rs.1.50 per month for every Rs.100 for deposits made in less than five years. If your tenure is more than five years, you must pay a penalty of Rs.2 per Rs.100. To calculate this penalty, a portion of a month is treated as a whole month.

Types of Karnataka Bank RD Account

Domestic Recurring Deposit Account:

This sort of RD account is only available to residents, and it offers excellent interest rates and nomination options. It's ideal for people with a consistent income, such as salaried employees.

• The minimum deposit is ₹50 per month.
• Maximum deposit is not specified.
• Tenure ranges from 6 months to 10 years.
• Interest rates range from 5.80% to 7.35% p.a., with special rates for older citizens.
• Eligibility: Indian residents.

Non-resident (external) Cumulative Deposit Account:

Karnataka Bank's NRE Cumulative Deposit Account is for Indians residing abroad. It offers tax benefits, nomination options, and the ability to form a joint account. Investments in this account are totally repatriable.

• The minimum deposit is ₹50 per month.
• Maximum deposit is not specified.
• Tenure ranges from 1 to 10 years.
• Interest rates range from 5.80% to 6.95%p.a.
• Eligibility: Open to PIOs, OCIs, and NRIs.

Non-resident (Ordinary) Cumulative Deposit Account:

Karnataka Bank's NRO Cumulative Deposit Account is designed specifically for NRIs, with nomination and joint ownership options available to resident individuals. Unlike the NRE RD account, funds in this account are not repatriable, and tax breaks are not available.

• Minimum deposit is ₹50 per month.
• Maximum deposit is not specified.
• Tenure ranges from 6 months to 10 years.
• Interest rates range from 5.80% to 6.95% p.a..
• Eligibility is open to PIOs, OCIs, and NRIs.

Platinum Lakhpati:

The Platinum Lakhpati scheme offers deposit durations ranging from 45 to 120 months, with 15-month increments. This novel technique entails monthly investments that build to more than a lakh rupees by the end of the designated time. The invested amount is decided by the specified tenure. For further information, please contact the bank directly.

Steps to Close Karnataka Bank RD Account Offline

If you wanna close the RD account then you can do it with these simple steps

Step 1: Go to your nearest Karnataka Bank branch and request the RD Account Closure Form.

Step 2: Fill out the form and submit it to the officer-in-charge or bank manager, along with the needed KYC documents.

Step 3: Submit the RD receipt for processing. After verification, you can select whether to transfer the funds to another account or withdraw the amount.