Karur Vysya Bank Fixed Deposit (FD) Interest Rates

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08 min read

Karur Vysya Bank (KVB) is an Indian bank with about 100 years of history and has about 782 branches across the country. The bank offers a range of products and services for personal, business, and NRI customers.

KVB offers multiple types of FD schemes that serve different requirements. This article covers everything you need to know before opting for a suitable FD scheme.

KVB Fixed Deposit Interest Rates 2021

Below are the fixed deposit interest rates for Fixed Deposit Scheme and Reinvestment Plans Scheme for deposits below Rs.2 crore. The rates are effective from 8th July 2021.

PeriodInterest Rate (% p.a.)*
7-14 days3.25
15-30 days3.25
31-45 days3.25
46-90 days3.25
91-120 days3.50
121-180 days3.75
181-270 days4
271 days- less than 1 year4.25
1- Less than 2 years5.25
2- Less than 3 years5.50
3- Less than 5 years5.50
5 years and above5.75
KVB- Tax Shield6

*Interest rates are subject to change from time to time

For Flexi Term Deposits, the interest rate is 3.25% for 300 days. 

KVB Senior Citizen Deposit Interest Rates 2021

The rates are effective from 8th July 2021. 

Period (in years)Interest Rate (in % p.a.)*
1 < 25.75
2 < 36
3 < 56
KVB- Tax Shield Deposits6

*Interest rates are subject to change from time to time

Different Types of FD Schemes Offered

Fixed Deposit Scheme

The deposit amount can start from Rs.100 with no maximum limit. The minimum period is 15 days, and the maximum period is 10 years, with interest payable. It is suitable for people who wish to have interest from deposits as their income source.

Double Delight FD Scheme

This scheme provides the depositors with an even maturity amount on an odd deposit and provides free hospital insurance. The tenure can range from one year up to 10 years. The period is in multiples of 10 months, and the maximum period is five years for senior citizens.

Reinvestment Plans FD Scheme/Tirumagal Tirumana Thittam (TTT)

This FD scheme focuses on long-term investments. The minimum amount is Rs.100 with no restriction to the maximum limit. The minimum period is six months, and the maximum limit of 10 years. The maximum deposit tenure is 20 years for minors.

Senior Citizen FD Scheme

Senior citizens get a preferential rate of interest with cumulative and non-cumulative options available. The minimum period is one year, and the maximum is five years. The maximum ceiling limit for a preferential rate of interest is Rs.3 crore.

 Special Features and Benefits of KVB FDs

  • Schemes with a minimum deposit as low as Rs.100 are available.
  • The minimum period to deposit your money is seven days.
  • The tenure can go up to 10 years based on your preference.
  • A dedicated FD scheme is available for senior citizens.
  • Option of preferential RoI is given to senior citizens.
  • Premature closure of schemes can be done with applicable rules. 
  • Earn higher returns with the capital and interest reinvestment option.
  • You can choose to get the interest paid out in regular intervals.
  • The loan facility is available on select schemes.
  • A nomination facility is available on all FD schemes and accounts.
  • Individuals and non-individuals can open FD accounts with the bank.

Basic Eligibility for KVB FD Schemes

Scheme NameEligibility Requirement
Fixed Deposit SchemeCan be individuals, companies, associations, HUFs, partnership firms, etc.
Double Delight FD SchemeOnly individuals qualify
Reinvestment Plan/TTT SchemeIndividuals, companies, associations, HUFs, partnership firms, etc.
Minors and majors qualify
Senior Citizen FD SchemeResidents of India
At least 60 years of age, proof has to be produced
Nomination is compulsory

Tax Benefits on KVB Deposits

Tax Saving Deposits 

Cumulative and non-cumulative deposits under this scheme of up to Rs.1.50 lakh qualify for benefits under Section 80C of the Income Tax Act, and the lock-in period is five years. The minimum amount that can be deposited is Rs.100.  

Preference for cumulative deposits should be mentioned in the application form. The deduction under Section 80C will only apply to the first holder of the account in case of joint accounts.

Interest earned through Reinvestment Plans, Fixed Deposits and Senior Citizens Deposits is subject to Tax Deduct at Source (TDS). To avoid the TDS on interest earned, submit Form 15G or Form 15H (for senior citizens). 

FD Interest Rate Calculator

Calculate the possible maturity amount and interest on your deposit using ClearTax’s FD Calculator.

Frequently Asked Questions

What are the interest rates for deposits greater than Rs.2 crore?

Please get in touch with the bank to learn about the interest rates offered for a deposit amount greater than Rs.2 crore.

What is the penalty for premature closing of fixed deposits of KVB?

The interest amount is penalised, which is calculated for the time the deposit was with the bank. The rates are subject to change. 

Amount Deposited Penal Interest
Up to Rs.2 crore1%
Above Rs.2 croreAs per the penalty norms
What hospital benefits can I expect from the Double Delight scheme?

The scheme provides free hospital insurance coverage of up to Rs.750 per day for a maximum period of seven days per year throughout the tenure of the deposit. This benefit is available only for the primary account holder when hospitalised for a minimum of 24 hours.

What does the odd sum and rounded sum mean with respect to the Double Delight scheme?

You can invest any amount you wish in the account. However, the maturity amount will be Rs.1 lakh, Rs.2 lakh, Rs.3 lakh, Rs.4 lakh, and Rs.5 lakh. Please get in touch with the bank to understand the details about this scheme.

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