Karnataka Bank Savings Account 2026
Karnataka Bank pays 2.50% on savings balances of ₹1 lakh and up to 4.00% on larger slabs. Old private-sector bank headquartered in Mangaluru.
Rates effective 1 Jul 2025 · Checked 30 September 2026Karnataka Bank savings account at a glance
Karnataka Bank savings account interest rates
| Daily balance | Interest rate (p.a.) |
|---|---|
| Up to ₹5 lakh | 2.50% |
| ₹5 lakh to ₹25 lakh | 2.75% |
| ₹25 lakh to ₹50 lakh | 3.00% |
| ₹50 lakh to ₹1 crore | 3.50% |
| Above ₹1 crore | 4.00% |
Source: www.policybazaar.com, effective 1 Jul 2025. Banks can revise savings rates at any time.
How much interest will you earn?
| Average balance | Effective rate | Interest / year | Per month | Extra in a 1-yr FD @ 6.5% |
|---|---|---|---|---|
| ₹50,000 | 2.50% | ₹1,250 | ₹104 | ₹2,080 |
| ₹1,00,000 | 2.50% | ₹2,500 | ₹208 | ₹4,160 |
| ₹5,00,000 | 2.50% | ₹12,500 | ₹1,042 | ₹20,801 |
| ₹10,00,000 | 2.75% | ₹27,500 | ₹2,292 | ₹39,102 |
| ₹25,00,000 | 2.75% | ₹68,750 | ₹5,729 | ₹97,754 |
Before tax; assumes a constant balance. Consider a sweep-in FD for money you do not need every day.
Minimum balance & charges
| Branch / item | Karnataka Bank regular savings |
|---|---|
| Metro / urban | — |
| Semi-urban | — |
| Rural | — |
| Non-maintenance charge | As per schedule of charges |
| Zero-balance option | Basic Savings Bank Deposit Account (BSBDA) — no minimum balance |
RBI rules: the bank must notify you of a shortfall and give one month to restore it; charges must be proportional to the shortfall and cannot make the balance negative. Compare minimum balance across banks →
Karnataka Bank savings account types
Standard features
- Debit card, UPI, net and mobile banking, IMPS/NEFT/RTGS
- Nomination for up to 4 nominees (from 1 Nov 2025)
- Auto-sweep into FDs available at most banks
- Account becomes inoperative after 2 years without customer-induced transactions — reactivation is free
Savings interest calculator
Tax on savings interest
| You are | Deduction | TDS |
|---|---|---|
| Below 60, old regime | Sec 80TTA — up to ₹10,000 of savings-account interest deductible | No TDS on savings interest |
| 60+, old regime | Sec 80TTB — up to ₹50,000 of interest from savings + FD + RD deductible | No TDS on savings interest; ₹1 lakh threshold on FD/RD |
| Any age, new regime | No 80TTA/80TTB; interest taxed at slab rate (rebate makes income up to ₹12 lakh tax-free) | No TDS on savings interest |
How to open a Karnataka Bank savings account
- OnlineApply on Karnataka Bank’s website or app with PAN and Aadhaar; complete video KYC.
- BranchFill the account-opening form with KYC documents and a photograph.
- Nominees & servicesAdd nominees; activate debit card, net banking and UPI.
Documents
- PAN (or Form 60)
- Aadhaar / passport / voter ID / driving licence
- Photograph (branch)
Compare with other banks
| Bank | On ₹1 lakh | On ₹10 lakh | Highest slab | Min. balance (metro) |
|---|---|---|---|---|
| IDFC FIRST Bank | 2.50% | 5.65% | 7.00% | ₹10,000 or ₹25,000 AMB (by variant) |
| DBS Bank India | 2.50% | 5.00% | 5.00% | ₹10,000 AMB (digibank Savings) |
| Bandhan Bank | 2.70% | 4.85% | 6.00% | ₹2,000 (Standard SB, from 1 Feb 2026; earlier ₹5,000) |
| RBL Bank | 3.00% | 4.00% | 6.00% | — |
| IndusInd Bank | 2.50% | 3.00% | 7.05% | — |
| Karnataka Bank | 2.50% | 2.75% | 4.00% | — |
| IDBI Bank | 2.50% | 2.60% | 3.00% | ₹10,000 (Advantage SB, per ClearTax) |
| State Bank of India | 2.50% | 2.50% | 2.50% | Nil (MAB requirement waived since Mar 2020) |
Frequently asked questions
What is the savings account interest rate at Karnataka Bank?
Karnataka Bank pays 2.50% on a ₹1 lakh balance and up to 4.00% on higher slabs (rates effective 1 Jul 2025). Interest is calculated on the daily closing balance.
What is the minimum balance for a Karnataka Bank savings account?
It depends on the account variant and branch location — check the bank’s schedule of charges.
What is the charge for not maintaining minimum balance?
As per the bank’s schedule of charges. RBI rules require notice and one month to restore the balance before charges, and charges cannot make the balance negative.
How much interest will ₹10 lakh earn in a Karnataka Bank savings account?
About ₹27,500 a year (2.75%), before tax.
Is savings account interest taxable?
Yes. There is no TDS, but the interest is taxable. In the old regime you can deduct up to ₹10,000 (80TTA) or ₹50,000 if you are 60+ (80TTB, including FD/RD interest).
Is my money safe in Karnataka Bank?
Deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
Compiled from the bank’s published rates and schedule of charges and reputable news/aggregator sources for comparison only. FinancePortal is not affiliated with Karnataka Bank. Confirm current terms with the bank.