Fixed Deposits (FDs) are one of the safest and most preferred investment options for individuals seeking a guaranteed investment return. One of India’s leading public sector banks, Canara Bank offers attractive FD interest rates tailored to cater to different customer needs. This comprehensive guide will delve into the details of Canara Bank FD interest rates, including current rates, benefits, special schemes for senior citizens, NRE FDs, tax saver FDs, and more.
A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum amount with a bank for a fixed tenure at a predetermined interest rate. Upon maturity, the bank returns your principal amount along with the accrued interest. FDs are popular because they offer higher interest rates than regular savings accounts, ensuring a safe and predictable return on investment.
As of today, Canara Bank offers competitive interest rates on its Fixed Deposit schemes. These rates vary based on the tenure of the deposit, the amount invested, and the type of FD account (regular, senior citizen, NRE, etc.).
Here is a breakdown of the current FD interest rates offered by Canara Bank:
| Tenure | Interest Rate (per annum) |
| 7 days to 45 days | 3.00% |
| 46 days to 90 days | 4.50% |
| 91 days to 179 days | 4.75% |
| 180 days to 269 days | 5.25% |
| 270 days to less than 1 year | 5.50% |
| 1 year to less than 2 years | 6.00% |
| 2 years to less than 3 years | 6.25% |
| 3 years to less than 5 years | 6.50% |
| 5 years and above | 6.75% |
1. Assured Returns: Fixed deposits with Canara Bank offer guaranteed returns at a predetermined interest rate, providing security against market fluctuations.
2. Flexible Tenure: You can choose the tenure for your fixed deposit, ranging from 7 days to 10 years, allowing you to align your investment with your financial goals.
3. Loan Against FD: Canara Bank allows you to take a loan against your fixed deposit, offering liquidity without breaking the deposit. Typically, you can borrow up to 90% of the FD amount.
4. Tax Benefits: Certain fixed deposit schemes, like the 5-year tax-saving FD, are eligible for tax deductions under Section 80C of the Income Tax Act.
5. Auto-Renewal Facility: Canara Bank offers an auto-renewal option, ensuring your investment continues to grow without interruption if you do not withdraw it upon maturity.
6. Premature Withdrawal: You have the flexibility to withdraw your fixed deposit before maturity, though it may be subject to a penalty, providing access to funds in emergencies.
7. Senior Citizen Benefits: Senior citizens are offered higher interest rates on fixed deposits, enhancing their returns and making it an attractive option for retirement savings.
8. Nomination Facility: Canara Bank provides a nomination facility for fixed deposits, ensuring that the proceeds are easily transferred to a nominee in the event of the account holder’s demise.
9. Wide Range of FD Schemes: Canara Bank offers various fixed deposit schemes tailored to different needs, such as regular FDs, tax-saving FDs, and special FDs for specific tenures with higher interest rates.
You may also want to know Bank of Baroda FD Interest Rates
Canara Bank offers special interest rates for senior citizens (aged 60 years and above) on fixed deposits. Senior citizens typically receive an additional 0.50% interest rate over and above the regular rates. It makes FDs an attractive investment option for retirees looking for stable and enhanced returns.
Here are the Canara Bank FD rates for senior citizens:
| Tenure | Interest Rate (per annum) |
| 7 days to 45 days | 3.50% |
| 46 days to 90 days | 5.00% |
| 91 days to 179 days | 5.25% |
| 180 days to 269 days | 5.75% |
| 270 days to less than 1 year | 6.00% |
| 1 year to less than 2 years | 6.50% |
| 2 years to less than 3 years | 6.75% |
| 3 years to less than 5 years | 7.00% |
| 5 years and above | 7.25% |
Non-Resident Indians (NRIs) can invest in Canara Bank’s Non-Resident External (NRE) Fixed Deposits. NRE FDs are an excellent way for NRIs to park their foreign earnings in India, as the interest earned is tax-free in India and fully repatriable.
Here are the current NRE FD interest rates:
The Canara Bank Tax Saver FD scheme allows individuals to save on taxes under Section 80C of the Income Tax Act. The scheme comes with a lock-in period of 5 years, during which the deposit cannot be withdrawn. Here are the interest rates for the Canara Bank Tax Saver FD:
Opening a Fixed Deposit with Canara Bank is a straightforward process. You can open an FD account online through Canara Bank’s internet banking portal or visit the nearest Canara Bank branch. Here are the steps to open an FD account online:
1. Log in to Net Banking: Access Canara Bank’s internet banking portal using your credentials.
2. Navigate to Fixed Deposits: Go to the ‘Fixed Deposit’ section under the ‘Deposits’ menu.
3. Choose FD Type: Select the type of FD (regular, senior citizen, NRE, tax saver) you wish to open.
4. Enter Details: Fill in the required details such as deposit amount, tenure, and nominee information.
5. Confirm and Submit: Review the details and submit the application. The amount will be debited from your linked savings account, and the FD will be created.
You may also want to know Central Bank of India FD Interest Rates
Before investing in a Fixed Deposit, consider the following factors to ensure it aligns with your financial goals:
1. Rate of Interest: Compare interest rates offered by different banks to maximize returns.
2. Tenure: Choose a tenure that aligns with your financial needs and goals.
3. Premature Withdrawal: Check the bank’s policy on premature withdrawal and associated penalties.
4. Loan Facility: Ensure the bank offers a loan against FD if you need liquidity.
5. Tax Implications: Understand the tax implications on the interest earned from the FD.
Canara Bank’s Fixed Deposits are a reliable and secure investment option offering attractive interest rates and various benefits tailored to meet the needs of different customer segments. Whether you are a regular investor, a senior citizen, an NRI, or looking to save on taxes, Canara Bank has an FD scheme that suits your requirements.
If you carefully consider the current FD interest rates and other factors, Canara Bank FD may become a viable option that guarantees investment returns. But, if you are looking for other investment options like Mutual Funds, you will require a Demat account.
Open a Demat Account with Jainam and get started with the investment journey.
The minimum deposit amount for a Canara Bank FD is less than Rs 2,000 and varies between 1000-2000 based on the type of FD and the tenure.
Yes, Canara Bank allows premature withdrawal of FDs, subject to certain terms and conditions. However, a penalty may be levied on the interest rate.
Yes, Canara Bank offers special FD schemes for senior citizens with higher interest rates.
No, the interest earned on NRE FDs is tax-free in India.
The lock-in period for Canara Bank Tax Saver FD is 5 years.
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