Fixed Deposits (FDs) are a preferred investment choice for many individuals in India who seek low-risk returns and capital safety. Among the various banks offering FD schemes, Canara Bank stands out as a trusted name with a long history of financial stability and attractive interest rates. Understanding the interest rates on FDs in Canara Bank is essential for anyone considering locking in their funds for short or long-term growth. This topic explores the latest FD interest rates, different tenures, senior citizen benefits, and other essential details about Canara Bank’s fixed deposit offerings.
Overview of Canara Bank Fixed Deposits
Why Choose Canara Bank for FDs?
Canara Bank is one of India’s largest public sector banks, with a solid reputation for customer service and diversified financial products. Their fixed deposit schemes are designed to meet the needs of various customer segments, including regular individuals, senior citizens, and NRIs. Canara Bank provides secure investment options with competitive returns and flexible tenures ranging from a few days to several years.
Types of Fixed Deposit Accounts
- Regular Fixed Deposits
- Senior Citizen FDs
- Tax Saver Fixed Deposits (under Section 80C)
- Reinvestment Plans
- Canara Bank NRO/NRE FDs for NRIs
Interest Rates on Canara Bank Fixed Deposits
Current FD Interest Rates for General Public
The interest rates offered by Canara Bank vary depending on the deposit amount and the tenure. Typically, higher interest rates are offered for longer tenures and larger amounts. As of the latest update, here are the indicative rates for domestic deposits under â¹2 crore for the general public:
- 7 days to 45 days 4.00% p.a.
- 46 days to 90 days 4.50% p.a.
- 91 days to 179 days 5.25% p.a.
- 180 days to less than 1 year 5.75% p.a.
- 1 year 6.85% p.a.
- More than 1 year to less than 2 years 6.90% p.a.
- 2 years to less than 3 years 6.80% p.a.
- 3 years to 10 years 6.70% p.a.
Note: These rates are subject to change at the bank’s discretion and may differ based on the deposit amount and scheme type.
Special Interest Rates for Senior Citizens
Canara Bank offers additional interest to senior citizens as a reward for their loyalty and to support their financial independence. Senior citizens typically receive an extra 0.50% interest on FDs compared to regular rates. For example:
- 1-year FD 7.35% p.a. (instead of 6.85%)
- 2-year FD 7.30% p.a. (instead of 6.80%)
- 3-year and above 7.20% p.a. (instead of 6.70%)
Senior citizens must be Indian residents and aged 60 or above to be eligible for these enhanced rates.
Interest Rates for NRE/NRO Deposits
Canara Bank also offers competitive FD rates for Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts. These are ideal for NRIs looking to invest their earnings in India. Generally, the interest rates on NRE and NRO FDs align with domestic FD rates, except that NRE FDs must have a minimum tenure of 1 year and interest is not taxable in India.
Key Features of Canara Bank FD Schemes
Flexible Tenure Options
Canara Bank provides flexible tenure options starting from as low as 7 days up to 10 years. This allows customers to align their investments with their financial goals and liquidity needs.
Minimum and Maximum Deposit Amount
- The minimum amount to open a fixed deposit is â¹1,000.
- There is no upper limit, though deposits above â¹2 crore may be considered bulk deposits and attract different interest rates.
Payout Options
Investors can choose between cumulative and non-cumulative payout options. In cumulative schemes, interest is compounded and paid at maturity. In non-cumulative schemes, interest is paid monthly or quarterly, which suits pensioners or those seeking regular income.
Loan Against FD
Canara Bank allows customers to avail loans or overdraft facilities against their fixed deposits, generally up to 90% of the deposit amount. This provides liquidity without breaking the FD.
Taxation on FD Interest
Tax Deducted at Source (TDS)
Interest earned on FDs is taxable as per the investor’s income tax slab. Canara Bank deducts TDS if the interest earned exceeds â¹40,000 (â¹50,000 for senior citizens) in a financial year. Customers can submit Form 15G or 15H to avoid TDS if their income falls below the taxable limit.
Tax Saver FDs
Canara Bank also offers 5-year Tax Saver Fixed Deposits that qualify for deductions under Section 80C of the Income Tax Act, up to a limit of â¹1.5 lakh per annum. However, premature withdrawal is not allowed on these deposits.
How to Open a Fixed Deposit in Canara Bank
Offline Method
- Visit the nearest Canara Bank branch.
- Fill in the FD application form.
- Submit required documents like identity proof, address proof, and PAN card.
- Deposit the desired amount through cash, cheque, or transfer.
Online Method
Canara Bank customers with net banking or mobile banking access can open FDs online via the Canara Bank portal or CANDI mobile app. The process is quick, paperless, and available 24/7.
Premature Withdrawal and Penalties
Canara Bank allows premature withdrawal of FDs except for tax saver deposits. However, if withdrawn before maturity, the interest may be paid at a lower rate applicable for the period the deposit was held. Additionally, a penalty of 1% may be levied on the applicable rate.
Benefits of Investing in Canara Bank FDs
- Safe and secure investment option backed by a trusted public sector bank
- Flexible tenures and payout modes
- Attractive interest rates for both general public and senior citizens
- Loan facility without liquidating the FD
- Tax saving options under Section 80C
Fixed Deposits with Canara Bank offer a reliable and straightforward way to grow your savings. Whether you are looking for short-term parking of surplus funds or long-term investment with guaranteed returns, Canara Bank has options to suit every investor’s needs. With competitive interest rates, flexible tenures, and added benefits for senior citizens, Canara Bank FDs remain a popular choice in 2025 and beyond. For anyone seeking financial security and peace of mind, understanding the interest rates on FD in Canara Bank is a wise first step toward smarter financial planning.