Karnataka Bank hikes deposit interest rates by 10 bps from 1 July. Check new rates here

Scheduled commercial bank based in Mangaluru, Karnataka Bank on Wednesday raised its interest rates on deposits and NRE Rupee term deposits below 2 crore on some tenures. The rates have been hiked by 10 basis points.

As per the regulatory filing, 10 basis points increase on deposits are for 1 to 2 years period deposits as well as above 2 years to 5 years deposits.

Karnataka Bank said, “The upward revision in the deposit interest rate will encourage retail customers to invest more in various term deposit schemes of the Bank.”

The new interest rates will come into effect from July 1, 2022.

Thereby, on term deposits below 2 crore for general public, from July 1, the interest rate will be 5.35% per annum from the current 5.25% on 1 year to 2 years tenure. While the rate will be 5.5% from the current 5.40% for the above 2 years to 5 years maturity period.

The remaining rates on term deposits are unchanged. That means Karnataka Bank will continue to offer 3.40% on 7 days to 45 days tenure, 4.90% on 46 days to 90 days tenure, 5% on 91 days to 364 days tenure, and 5.50% on above 5 years to 10 years tenure.

Currently, the bank offers a 5.65% interest rate to senior citizens on deposits below 2 crore for a 1-2 years maturity period. The rate is 5.80% on above 2 years to 5 years tenure, and 6% on above 5 years to 10 years tenure.

Meanwhile, in the case of NRE Rupee Term Deposits below 2 crore, the interest rate will increase to 5.35% on 1-2 years tenure, and 5.5% on above 2-5 years tenure.

Also, a penalty of 1% on the applicable rate shall be levied for premature closure of a single rupee term deposit of 2 crore & above. For the purpose, applicable rate means the interest rate applicable for the period the deposit has remained with the Bank or contracted rate, whichever is less.

On BSE, Karnataka Bank closed at 65 apiece flat compared to the previous closing.

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