Karnataka Vikas Grameena Bank FD Interest Rates

Karnataka Vikas Grameena Bank FD Interest Rates

As you might be aware, a Fixed Deposit (FD) is a bank-sponsored investment option that pays a higher rate of interest than a normal savings account. Because of the higher returns offered by FDs, you can easily achieve your financial goals by investing in one.

The Karnataka Vikas Grameena Bank FD allows you to deposit a lump sum amount for a fixed period of time, ranging from seven days to ten years. You can select from a variety of tenures provided by Karnataka Vikas Grameena Bank FD, depending on your needs and financial goals. When you choose a tenure and deposit money in a Karnataka Vikas Grameena Bank FD, it will begin earning Interest after a certain period of time has passed. Customers can only deposit a lump amount of money into their fixed deposit account once they open the account with the bank. They are not allowed to deposit additional money into the same FD account after that.

If you invest in a Karnataka Vikas Grameena Bank FD for a period of 5 years or more, you will get tax benefits under section 80C of the Income Tax Act on a sum between Rs. 100 and 1.5 lakh.
Karnataka Vikas Grameena Bank FD Rates for various tenors are described in the table below.

Karnataka Vikas Grameena Bank FD Interest Rates (as of 24 Mar 2021)

Maturity Period	Interest Rate (p.a.)
30 Days	3.00%
45 Days	3.50%
60 Days	4.00%
90 Days	4.25%
120 Days	4.50%
6 Months	4.50%
9 Months	5.00%
12 Months	5.60%
2 Years	5.70%
3 Years	5.70%
4 Years	5.70%
5 Years	5.70%
10 Years	5.70%

Karnataka Vikas Grameena Bank FD features and benefits

• Flexible FD tenures and competitive interest rates are available to fit your investment strategy.
• You can open an FD account online or at a Karnataka Vikas Grameena Bank branch near you.
• There is no limit to the number of FD FD Tenures that can be held: From one day to ten years.
• Monthly, quarterly and other interest payment options are available.
• Up to 85 per cent of the FD sum is eligible as a loan or overdraft against the FD.
• Liquidity solutions that are easy and fast are available.
• It is possible to nominate anyone.
• Through the tax saving term deposit scheme, you will benefit from a tax gain of up to Rs 1,50,000.
• When compared to other citizens, senior citizens will benefit from a higher interest rate.
• The bank provides NRE, NRO, and FCNR deposit services.

Who is Eligible for the Program?

Any of the following persons are eligible to invest in fixed deposits (FD):

• Individual
• Minor
• HUF
• Proprietary Firm
• Partnership Firm
• Limited Liability Partnership (LLP)
• Company
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Local Authority
• Trust
• Non-Resident Indian (NRI)
• Registered Society

Before you invest in fixed deposits, there are a few things you should know.

• Often compare various banks’ FD interest rates by tenure before deciding to open an FD account to get the best interest rate on the chosen term.
• Most banks fixed deposits have periods ranging from seven days to ten years. You should pick the FD Tenure that best suits your needs and investment goals.
• If necessary, choose interest payment options such as monthly or quarterly. Otherwise, choose the cumulative option to obtain a lump sum payment when your FD matures.
• If you need money right away, you can get a loan or an overdraft against your FD.
• If your annual income is not taxable, you can stop TDS by filing Form 15G or Form 15H.
• Remember to make a nomination in your FD account as well.
• If you are a senior citizen, open an FD with a bank that pays senior citizens an additional 0.25 per cent to 0.75 per cent interest.
• Don’t forget to send guidance on what to do when your fixed deposit matures, whether you open it online or offline. If you do not send any instructions, your fixed deposit will be automatically renewed at the end of the term.

Karnataka Vikas Grameena Bank Interest on FD Calculation

Interest on FD is determined in the following manner for various tenures:

• For fixed deposit terms of less than six months, simple Interest is charged at maturity.
• For fixed deposit terms of 6 months and longer, Interest is measured quarterly.
• Each quarter, cumulative interest/re-investment interest is measured and added to the Principal, resulting in Interest being accrued on in the previous quarter.
• Interest received the previous quarter. Interest is measured quarterly and charged monthly at a discount to the Standard FD Rate in a monthly deposit scheme.

FD Interest Calculator for Vikas Grameena Bank

The Karnataka Vikas Grameena Bank FD Interest Calculator is an online financial tool that lets you measure your fixed deposit’s maturity value based on the bank’s interest rate. At the end of the period, the FD’s maturity value is determined by the amount of the FD, the interest rate, the deposit tenure, and the compounding level of Interest.

Bank FD Renewal on Autopilot

A bank FD has a set maturity date. Most banks automatically renew your FD for the same term. It was originally made at the interest rate prevailing on the date of maturity if you have not issued any clear instructions such as payout or renewal of FD. The term for this is Automatic Renewal of Bank FD.

If you don’t want your FD to renew automatically, choose the option on the account opening form. When depositing money in an FD, you have two options on the account opening form: auto-renew and deposit of sum to your account after maturity. If you did not specify any preference on the account opening form, you would need to visit the bank branch on the maturity date of your bank FD and request a credit of the final proceeds of your bank FD into your savings account if you do not want your FD to be automatically renewed.

You can even avail of gold loans at an attractive interest rate.

News Snippet

SBI updated its FD interest rate on January 13 2020, according to bank FD news.

SBI has reported a reduction in the rates on retail fixed deposits. The most recent SBI deposit FD rates are valid as of January 10, 2020. On long-term deposits maturing in one year to ten years, the bank has cut FD rates by 15 basis points. The current FD interest rate is 4.50 per cent for 7 to 45 days, 5.50 per cent for 46 to 179 days, 5.80 per cent for 180 days to 1 year, and 6.10 per cent for one year to 10 years.

Axis Bank cut its FD interest rate on January 9, 2020.

From January 9, Axis Bank cut interest rates by up to 20 basis points. FDs with a tenor of less than one year and a value of less than Rs 2 crore will earn 6.40 per cent, whereas FDs with a tenor of 5 years and up to 10 years will earn 6.50.

In 2019, HDFC Bank deposits increased by 25% year on year (YoY).

Deposits at India’s largest private lender, HDFC Bank, increased by 25% year in 2019. Its deposits have increased by 25% to Rs 10.67 trillion as of December 31, 2019, compared to Rs 8.52 trillion as of December 31, 2018.

for more details visit the official page of Dialabank.

FAQs on Karnataka Vikas Grameena Bank FD

✅Who are the MLIs under the Scheme?

All SCBs are eligible as MLIs. NBFCs that have been in operation for at least 2 years as of 29.2.2020 and FIs will also be eligible as MLIs under the Scheme.

✅Will any guarantee fee be charged under the Scheme by NCGTC?

No, NCGTC will not charge any guarantee fee under the Scheme

✅ What is the highest rate of interest provided by Vikas Grameena Bank?

The highest rate of interest provided by Vikas Grameena Bank is 5.70%.