This Large Private Bank Hikes Fixed Deposit Rates W.e.f May 21, 2022

Karnataka Bank i.e. the country's 12th largest old age bank has hiked FD rates following other banks. Notably, the RBI in order to lessen the pressure in an off-cycle meet has hiked key policy rate or repo rate i.e. the rate at which RBI lends to commercial banks by 40 bps, bringing the rate to pre-Covid levels.

Here are the latest Karnataka Bank FD rates with effect from May 21, 2022:

Interest rates for deposits General Public w.e.f. May 21, 2022

The interest rate has been hiked for 1-2 year tenure. Previously, the bank offered an interest rate of 5.1 per cent, but it has been raised by 15 basis points to 5.25 per cent on deposits of one to two years. There has been no change though in other FD tenures.

Interest rates for deposits General Public (*)
Maturity Pattern	Interest Rate (% p.a) for Deposits below Rs.2 Crore	Interest Rate (% p.a) for Deposits Rs.2 Crore and upto Rs. 10 Crore
7 days to 45 days	3.4	3.4
46 days to 90 days	4.9	4.9
91 days to 364 days	5	5
1 year to 2 Years	5.25	5.25
Above 2 Year to 5 years	5.4	5.4
Above 5 year to 10 years	5.5	5.5

Interest Rate (% p.a) w.e.f. 21-05-2022

Similarly the rate hike has been made for Senior citizen Fds and the senior citizens w.e.f. May 21, 2022 for deposits of 1 year to 2 year shall henceforth get a return of 5.65%, for tenure of above 2 year to 5 year will get 5.8% per annum and that of more than 5 year tenure shall get 6% interest rate.

Interest rate for Senior Citizens:(FD & ACC Only)
Interest Rate (% p.a) w.e.f. 21-05-2022
Maturity Pattern	Deposits upto & inclusive of Rs.5 Crore
1 year to 2 Years	5.65
Above 2 Year to 5 years	5.8
Above 5 Year to 10 years	6

 

NRE Rupee Term Deposits w.e.f. May 21, 2022

Interest rates for NRE Rupee Term Deposits General Public w.e.f. 21.05.2022
Maturity Pattern	Interest Rate (% p.a) for Deposits below Rs.2 Crore	Interest Rate (% p.a) for Deposits Rs.2 Crore and upto Rs. 10 Crore
1 to 2 Years	5.25	5.25
Above 2 Year to 5 Years	5.4	5.4
Above 5 Year to 10 Years	5.5	5.5