The private sector lender Karnataka Bank has revised interest rates on fixed deposits of less than ₹2 Cr. As per the official website of the bank, the new rates are effective as of 29th September 2022. Following the modification, the bank is now providing fixed deposits with maturities ranging from 7 days to 10 years with interest rates between 5.25% and 5.80%. Retail investors will now get a maximum interest rate of 6.40% on fixed deposits that mature in one to two years.
Karnataka Bank FD Rates
The bank is currently giving an interest rate of 5.25% on fixed deposits maturing in 7 days to 364 days, while Karnataka Bank is now offering an interest rate of 6.40% on term deposits maturing in 1 year to 2 Years. Fixed deposits maturing in the next 2 to 5 years will now pay 5.75% interest, while term deposits maturing in the next 5 to 10 years will now generate 5.80% interest.
The interest Rate per annum for deposits of Rs.2 Crore and upto Rs. 10 Crore has also been revised by the bank. On this amount slab, the bank is now offering an interest rate ranging from 5.60% to 5.80% on deposits maturing in 7 days to 10 years and on term deposits maturing in 1 year to 2 Years the bank will now offer a maximum interest rate of 6.50%.
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Karnataka Bank FD Rates For Senior Citizens
Karnataka Bank has mentioned on its website that “0.40% extra over the general rate upto & inclusive of 5 crore only under Domestic FD and ACC Schemes (Not for deposit under NRE/NRO/FCNR(B) accounts) for resident Senior Citizens only for tenure 1 to 5 years and 0.50% extra over the general rate for tenure 5 to 10 years w.e.f. 09.11.2020.”
For fixed deposits below ₹2 crore with maturities ranging from one year to ten years, the bank is providing elderly people interest rates between 6.80% and 6.30%.
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The Reserve Bank of India (RBI) on September 30 declared a 50 basis point increase in the repo rate, bringing it to 5.90%, in line with market forecasts. This is the fourth consecutive increase since May. The move was made in an effort to reduce inflation. As a result, interest rates on loans will increase soon in order to meet the banks’ credit demand, which will result in higher monthly payments toward their loans for borrowers, but deposit rates will also rise soon, to the delight of retail investors.
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