Summary: Karur Vysya Bank’s Samriddhi 400 is a named 400-day retail term deposit with bank-published rates of 7.20% for the general public and NRIs and 7.70% for senior citizens, subject to eligibility and the terms in force when the deposit is booked. The official product page states a minimum deposit of ₹1,000, a maximum below ₹3 crore, payout and cumulative choices, auto-renewal at the rate prevailing on maturity in the absence of instructions, and premature withdrawal with a 1% rate reduction against the applicable rate for the actual run period. Interest is taxable, while section 393 of the Income-tax Act, 2025 currently specifies bank-interest TDS thresholds of ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen. DICGC cover is not product-wise: eligible deposits with the same insured bank are aggregated in the same right and capacity, with principal and interest covered together up to ₹5 lakh.
- Samriddhi 400 is a fixed-tenure retail term deposit
- The bank uses the word “proposed” for the displayed rate
- Who the bank says can open the deposit
- NRI eligibility does not make every interest receipt tax-free
- Payout and cumulative choices change cash-flow timing
- Do not calculate maturity value with an assumed compounding convention
- Premature closure applies the run-period rate and a 1% reduction
- A deposit loan and premature closure are different choices
- Auto-renewal can change the rate and the liquidity date
- Renewal is a new rate event, not continuation of the old headline
- Interest is taxable even when no TDS is deducted
- Use the current statutory thresholds, not a stale product-page FAQ
- DICGC insurance is aggregated across deposits at the bank
- Insurance cover is not a guarantee of immediate access or every rupee
- A booking and review checklist for Samriddhi 400
- Frequently Asked Questions on KVB Samriddhi 400
- 1. What tenure does Samriddhi 400 use?
- 2. What rates were displayed on 30 October 2026?
- 3. Can the deposit be closed before 400 days?
- 4. Does the 7.70% senior rate apply to every entity with a senior partner?
- 5. Is interest exempt if it stays below the TDS threshold?
- 6. Is each KVB fixed deposit insured up to ₹5 lakh separately?
- 7. What happens if no maturity instruction is given?
- Key Takeaways
Samriddhi 400 is a fixed-tenure retail term deposit
Karur Vysya Bank describes Samriddhi 400 as a retail term deposit for a fixed period of 400 days. The scheme page was live and the terms below were checked on 30 October 2026. A depositor should still capture the rate and terms displayed in the branch, internet-banking or mobile-banking confirmation at the moment of booking because the bank reserves the right to change, alter or withdraw the scheme.
| Feature | Bank-published position | Practical verification |
|---|---|---|
| Tenure | 400 days | Confirm start date and maturity date in the receipt |
| Minimum deposit | ₹1,000 | Check channel-specific amount validation |
| Maximum deposit | ₹2,99,99,999 | Amounts at or above ₹3 crore are outside this retail product limit |
| General public and NRIs | 7.20% per annum | Check residential status and account/deposit eligibility |
| Senior citizens | 7.70% per annum | Confirm age and whether the quoted benefit applies to the depositor category |
| Rate type | Fixed | The booked rate ordinarily remains fixed for the deposit term |
The bank uses the word “proposed” for the displayed rate
The official Samriddhi 400 page labels the displayed rate as “proposed”. That wording makes the booking confirmation especially important. This article reports the page as published; it does not convert a web display into a contractual promise. The operative rate is the rate accepted and recorded by the bank for the particular deposit on the booking date.
Who the bank says can open the deposit
The product page lists individuals, joint individuals, minors, Hindu undivided families, sole proprietorship concerns, trusts, associations, clubs and societies, partnership firms, joint-stock companies and other entities not prohibited by the Reserve Bank of India. That broad list does not mean every entity receives the same rate, tax treatment, senior-citizen benefit or digital-channel access. Entity documents, KYC, beneficial ownership, authority to invest and FEMA status must be checked separately.
NRI eligibility does not make every interest receipt tax-free
The bank page includes NRIs alongside the 7.20% display, but the account type and applicable FEMA and income-tax conditions matter. NRE, NRO and resident deposits have different legal and tax consequences. A person who changes residential status should inform the bank and obtain advice rather than assume that the original account label can continue unchanged.
Payout and cumulative choices change cash-flow timing
KVB states that interest-payout and cumulative options are available. Monthly, quarterly and half-yearly interest payments are stated to use a simple rate of interest; the bank’s general fixed-deposit page additionally notes that monthly interest is paid at a discounted rate. A cumulative option retains interest within the deposit until maturity under the bank’s calculation method. Depositors should compare the deposit receipt and maturity instruction, not only the headline annual rate.
Do not calculate maturity value with an assumed compounding convention
A 400-day period does not equal a calendar year, and the product page states an actual/actual interest-calculation basis. The exact maturity amount can depend on the booked principal, value date, payout or cumulative selection, compounding or discount method, rounding and tax deduction. Use the bank-generated advice or calculator and retain the final confirmation. A manually estimated amount should be treated only as a cross-check.
Premature closure applies the run-period rate and a 1% reduction
Premature withdrawal is allowed. The product page states that interest will be paid for the period the money actually remained with the bank at the applicable rate, subject to a pre-closure penalty. It specifies a 1% penalty, expressed as payment of interest at 1.00% less than the rate applicable on the deposit-opening date for the actual run period. This means the original 400-day headline rate should not be used automatically when a deposit is closed earlier.
| Event | Published term | Evidence to retain |
|---|---|---|
| Premature closure | Allowed; actual run-period rate less 1% | Closure request and bank calculation |
| Loan against deposit | Available under regular term-deposit norms | Lien letter, loan rate and repayment terms |
| Auto-renewal | Same period at rate prevailing on maturity if no instructions | Maturity instruction and renewed receipt |
| Nomination | Available | Nomination acknowledgement and updated details |
| Lien-marked deposit | System may force-renew for one year | Lien status and loan/renewal communication |
A deposit loan and premature closure are different choices
The availability of a loan does not establish that borrowing is cheaper or suitable. A loan creates interest and repayment obligations and places a lien on the deposit; premature closure changes the deposit interest. The bank should provide the actual loan rate, margin, charges and closure computation before a depositor decides. This article makes no recommendation between them.
Auto-renewal can change the rate and the liquidity date
If the bank has no contrary maturity instruction, the page says the deposit will be auto-renewed for the same period at the rate prevailing on the maturity date. The renewed rate may differ from 7.20% or 7.70%, and the next maturity will move by another 400-day period. A depositor who needs proceeds on a particular date should lodge and preserve an instruction before maturity and verify that the bank has recorded it.
Renewal is a new rate event, not continuation of the old headline
The original receipt proves the first booking. After renewal, obtain a new receipt showing principal carried forward, interest treatment, renewed tenure, new rate, nominee and lien status. If tax has been deducted or payout interest was already received, reconcile those amounts before treating the renewed principal as the original principal plus all accrued interest.
Interest is taxable even when no TDS is deducted
Interest on a bank term deposit is ordinarily taxable according to the depositor’s applicable income-tax position. Tax deduction at source is only a collection mechanism; crossing or not crossing a threshold does not determine final taxability. Under section 393 of the Income-tax Act, 2025, the current threshold for interest other than interest on securities paid by a banking company is ₹1,00,000 for a senior citizen and ₹50,000 for a person other than a senior citizen. The section applies aggregation rules, and core-banking interest should not be tested branch by branch.
Use the current statutory thresholds, not a stale product-page FAQ
One KVB promotional page still refers to older ₹40,000 and ₹50,000 limits. Those figures should not be used for TY 2026-27. The current official Income Tax Department text of section 393 specifies ₹50,000 and ₹1,00,000 respectively. A declaration seeking non-deduction, where legally available, does not make interest exempt; eligibility, estimated total income and the current form requirements must be checked before submission.
DICGC insurance is aggregated across deposits at the bank
Karur Vysya Bank is a bank deposit product, so DICGC principles are relevant. DICGC states that eligible deposits such as savings, fixed, current and recurring deposits are insured, but the maximum is ₹5 lakh for principal and interest together for each depositor at the same bank in the same right and capacity. Multiple branches and multiple account numbers do not create separate limits when the ownership capacity is the same.
Insurance cover is not a guarantee of immediate access or every rupee
DICGC liability arises in specified events such as liquidation, cancellation of the bank’s licence, an applicable reconstruction or amalgamation scheme, or qualifying all-inclusive directions with withdrawal restrictions. Balances may be aggregated and bank dues may be set off. A deposit above the insured limit remains a claim against the bank under the applicable process. The ₹5 lakh ceiling should therefore be described precisely, not as unlimited government backing of the product.
A booking and review checklist for Samriddhi 400
1. Confirm that the product remains open and record the booking date, 400-day maturity date and bank-approved rate.
2. Verify depositor category, KYC, ownership order, nominee, source account and authority to invest.
3. Choose payout or cumulative treatment and obtain the bank’s maturity-value or payout schedule.
4. Read the premature-closure, loan, lien, renewal and unclaimed-interest terms before funding.
5. Aggregate expected bank interest for TDS monitoring and retain interest certificates and Form 26AS/AIS reconciliation.
6. Review total eligible deposits with KVB in the same right and capacity when considering the ₹5 lakh DICGC limit.
7. Save the deposit receipt, account statement, nominee acknowledgement and maturity or renewal instruction.
Frequently Asked Questions on KVB Samriddhi 400
1. What tenure does Samriddhi 400 use?
The official product page states a fixed period of 400 days.
2. What rates were displayed on 30 October 2026?
The page displayed 7.20% per annum for the general public and NRIs and 7.70% for senior citizens, using the label “proposed”. The booked receipt controls the actual deposit.
3. Can the deposit be closed before 400 days?
Yes. The page allows premature withdrawal and states a 1% pre-closure reduction against the applicable rate for the period actually run.
4. Does the 7.70% senior rate apply to every entity with a senior partner?
No such assumption should be made. The bank must confirm the depositor category and the account-specific eligibility for any senior-citizen benefit.
5. Is interest exempt if it stays below the TDS threshold?
No. A TDS threshold controls deduction by the bank, not the final taxability of interest in the depositor’s return.
6. Is each KVB fixed deposit insured up to ₹5 lakh separately?
No. DICGC aggregates eligible deposits at the same bank held by a depositor in the same right and capacity; principal and interest share the ₹5 lakh ceiling.
7. What happens if no maturity instruction is given?
The product page says auto-renewal is available for the same period at the rate prevailing on the maturity date. Verify the renewed receipt and rate.
Key Takeaways
- Samriddhi 400 is a 400-day KVB retail term deposit with a ₹1,000 minimum and a retail maximum below ₹3 crore.
- The bank displayed 7.20% for the general public and NRIs and 7.70% for senior citizens on 30 October 2026; the booked receipt is decisive.
- Premature closure uses the actual run-period rate and a stated 1% pre-closure reduction.
- Current section 393 bank-interest TDS thresholds are ₹50,000 for non-senior persons and ₹1,00,000 for senior citizens, while final taxability remains separate.
- DICGC covers eligible principal and interest together up to ₹5 lakh per depositor per bank in the same right and capacity.
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Disclaimer: This article is a neutral educational summary of Karur Vysya Bank’s Samriddhi 400 retail term deposit, the Income-tax Act, 2025 interest-deduction provisions and DICGC deposit-insurance principles as checked on 30 October 2026. It is not an invitation to deposit, an advertisement, a ranking, a prediction of interest rates or bank performance, or legal, tax, investment, FEMA, accounting or financial advice. The bank may change, suspend or withdraw the product, displayed rate, eligibility, channels, payout method, premature-closure computation, loan margin, renewal process, minimum or maximum amount and documentation after the verification time. The word “proposed” appears on the bank’s rate display; only the rate and terms accepted in the particular deposit receipt and applicable account contract create the depositor’s bank-specific position. Senior-citizen, NRI, HUF, trust, firm, company, minor and joint-deposit rules can differ. TDS thresholds do not determine final tax liability, and residential status, total income, PAN, declarations, aggregation and later law must be examined individually. DICGC cover is subject to statutory exclusions, aggregation by bank, right and capacity, principal-and-interest ceiling, set-off and the occurrence of a specified insured event; it is not product-wise or branch-wise and does not assure immediate liquidity. Readers should verify the live KVB page and written deposit advice, current Income Tax Department provisions, DICGC status and terms, and obtain qualified advice before acting. TaxGuru accepts no responsibility or liability for any loss of interest, premature-closure reduction, tax, TDS, penalty, failed renewal instruction, uninsured balance, bank restriction, documentation error, liquidity issue or other consequence arising from reliance on this article.
