Best FD Rates: J&K Bank vs Karnataka Bank interest rates compared across tenures

Market volatility often prompts investors to rebalance their portfolios in favour of safer assets, with fixed deposits remaining a popular choice for guaranteed returns. While FD interest rates change with the Reserve Bank of India's monetary policy and banks' funding costs, comparing rates across lenders can help investors maximise returns without taking market risk.

Scheduled banks currently offer fixed deposit interest rates ranging from 2.50% to 8.10% per annum for regular depositors across tenures of seven days to 10 years. Although small finance banks continue to offer the highest returns, several public and private sector banks remain competitive for investors looking for a balance between returns, tenure flexibility and branch network. Among them, Jammu & Kashmir (J&K) Bank and Karnataka Bank offer a range of FD options for regular and senior citizen depositors.

J&K Bank FD interest rates

J&K Bank offers FD interest rates ranging from 3.50% to 7.30% per annum for regular customers and 4.00% to 7.80% per annum for senior citizens on deposits below ₹3 crore. The bank's highest rate of 7.30% is available on a special 888-day tenure, while senior citizens can earn up to 7.80% on the same tenure.

The bank also offers a Tax Saver FD carrying 6.75% interest for regular customers and 7.25% for senior citizens for deposits with a tenure of five to 10 years.

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Karnataka Bank FD interest rates

Karnataka Bank offers FD interest rates between 3.50% and 7.00% per annum for regular depositors and 3.75% to 7.40% per annum for senior citizens. Its highest rate of 7.00% is available on a special 555-day deposit, while senior citizens can earn up to 7.40%.

Karnataka Bank's KBL Tax Planner, a five-year tax-saving fixed deposit, offers 6.50% interest to regular depositors and 6.90% to senior citizens.

J&K Bank vs Karnataka Bank: FD comparison

For investors comparing the two banks, J&K Bank offers higher interest rates across most key tenures, including one-year, three-year, five-year and tax-saving fixed deposits. However, the choice should also take into account liquidity requirements, premature withdrawal rules, branch accessibility and deposit insurance. Deposits held with scheduled banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 lakh per depositor per bank, providing an additional layer of safety.

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