Canara FD Interest Rates

2.95% - 5.50%
Interest rates
3 months - 10 years
Time Period
₹1000 - no limit
Min. - Max amount
QUARTERLY
Compounding

About Canara Bank

Canara Bank is a renowned name in the banking industry and also one of the largest Nationalised Banks in India. It was established at Mangalore in 1906 and has its headquarter in Bengaluru, Karnataka.

Canara Bank provides its customers with lots of fixed deposit options to choose from and to secure a part of their savings for a fixed tenure. A customer can deposit a fixed amount at the time of opening the account. Adding more money and withdrawing in between the ongoing tenure is not allowed. Canara Bank fixed deposits give higher returns as compared to its savings account. Canara Bank FD interest rates range from 2.95% – 5.50% with a tenure of 7 days to 10 years.

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Started On1906
Head QuartersBengaluru
CRISIL RatingNA
CEOLingam Venkat Prabhakar
Listed on exchange asCanara Bank
ICRA RatingNA

Canara Bank FD Rates 2022

TenureRegular customersSenior citizens

Features and Benefits of Canara Fixed Deposit

  • The Canara Bank FD tenure ranges from 7 days to 10 years
  • Senior citizens get an additional interest rate of 0.50% p.a. over regular rates
  • The minimum deposit to open an FD account in Canara bank is Rs. 1000
  • Nomination facility is offered by the bank
  • Loan/overdraft facility of up to 90% of the deposit is available
  • Interest on deposit will be paid only on maturity
  • Canara bank provides various FD schemes like Canara Khazana Deposit and Canara Shikhar Deposit with attractive interest rates
  • Resident Indians, HUFS, private or public limited company, trust, and partnership firm

Types of Canara Bank FD Schemes

Regular Fixed Deposit Scheme

  • Joint accounts up to 4 persons allowed
  • Auto-renewal of the deposit
  • Tenure starts from 7 days to 10 years
  • Loans facility available for up to 90% of the FD value
  • Partial withdrawals can be made in multiples of Rs.1,000
  • Additional 0.50% interest rates for senior citizens

Canara Tax Saver scheme

  • Lock-in of this FD is of 5 years
  • Tax Saver interest rate on FD is 5.50% p.a. for general citizens
  • The Interest payout can be Monthly/Quarterly
  • TDS applicable to the interest income
  • Minimum investment amount is Rs.100
  • No loans facility is available against the Tax Saver FD
  • No premature withdrawal facility is available
  • Nomination facility is available but not for minor accounts
  • Tax benefits can be availed up to Rs.1.50 lakh as per Section 80C of the Income Tax Act, 1961

Canara Bank Kamadhenu Deposit (Re-investment)

  • Minimum deposit amount Rs.1,000
  • Tenure starts from 5 months to 10 years
  • Interest is paid on the maturity date
  • Nomination facility available
  • Partial withdrawals facility is available in multiples of Rs.1,000
  • Special interest rate for senior citizens get which is 0.50% more than general citizen's FD rates
  • Loans can be availed against the deposit for up to 90% of the deposit amount
  • The rate of interest of overdue deposits are the same as savings account interest rates

Canara Bank Ashraya Deposit Scheme (for Senior Citizens)

  •  
  • The scheme is meant only for individuals above 60 years of age
  • Cumulative Option which interest paid on maturity is available
  • Non-Cumulative Option which is regular interest payment is available
  • The tenure of the scheme ranges from 15 days to 120 months.
  • The minimum deposit amount for this FD is Rs. 1000.
  • Loan can be availed against FD of up to 90% on the deposit amount
  • Premature withdrawals are allowed. However, there is a penalty of 1% on deposits less than Rs. 2 crores made or renewed on or after 12th March 2019
  • Additional 0.50% ROI for account holders offered by the scheme

Term wise Canara Fixed Deposit Rates

Short-term Deposits

For a Canara Bank FD with tenure ranging from 7 days to 12 months, the interest rate offered is from 2.95% p.a. to 4.45% p.a. These deposits are known as short term deposits as their tenure is less than 1 year.

Medium-term Deposits

Medium-term fixed deposits have their tenures ranging from more than 1 year to less than 5 years. The interest offered by the bank on these deposits is around 5.20% – 5.50% p.a.

Long-term Deposits

These deposits have their tenure ranging from 5 years to 10 years and offer an interest rate of 5.50%.

Canara vs Other Banks' FD Rates

NameTenureInterest rate

How to invest in Canara Bank FD?

A Canara Bank FD account can be opened through different modes like Mobile App, Internet Banking, and offline.

1) Internet Banking

Follow the below-mentioned steps for opening a Canara Bank FD account via internet banking-

  • Sign in to the Canara Bank NetBanking account.
  • On the Term Deposit page, choose the ‘New Account’ option and select the type of deposit account.
  • Furnish all the necessary information, nominee details, payment, and maturity instructions.
  • Click on ‘Open Deposit' to verify the details.
  • Click on ‘Confirm’ and next, authenticate the transaction. A confirmation message pop-up will get displayed on the screen signifying the account opening.

2) Mobile App - Canara Bank App

Follow the steps mentioned ahead to open an FD account via Canara Bank App-

  • Download the Canara Bank App and sign in.
  • Choose the ‘New Account’ option and select the type of deposit account.
  • Fill out all the required details, payment, nominee information, and maturity instructions.
  • Click on ‘Open Deposit' to verify the details.
  • Click on ‘Confirm’ and next, authenticate the transaction. A confirmation message pop-up will get displayed on the screen signifying the account opening.

3) Opening Canara Bank FD Offline

For opening a Canara Bank FD account via offline mode, one has to visit the nearest Canara Bank branch. Fill out the Canara Bank FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the Canara bank.

Eligibility to Open a Canara Bank FD Account

Those who are looking to invest in Canara Bank fixed deposit scheme should meet the following eligibility factors.

  • Resident individuals or NRIs. 
  • Minors are eligible but need a guardian to operate their account.
  • Individuals belonging to Hindu undivided families or HUF
  • Companies, organisations and other institutions are also eligible for a Canara Bank FD scheme.

Documents Required to Open Canara Bank FD

Proof of Address

  • Bank statement including cheque
  • Electricity bill
  • Telephone bill
  • Passport
  • An ID or certificate issued by Post Office

Proof of Identity

    • Driving license
  • PAN card
  • Voter ID
  • Passport
  • Photo ration card

 

Tax on Canara Bank Fixed Deposit

An investment in Canara Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Canara Bank FDs entitle to tax saving under Section 80C of the Income Tax Act.

Also, note that the interest income from Canara Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Canara Bank FD exceeds Rs. 40,000 p.a.

For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.

Loan Against Canara Bank FD

Canara Bank provides loans against their Fixed Deposits. Investors can receive up to 90% of the deposit amount as a loan against Fixed Deposit in Canara Bank. The rate of interest will be between 5.5%-7.4%. Moreover, the loan tenure will be similar to the Canara Bank FD tenure.

Premature Closure of Canara Bank Fixed Deposit

All Canara Bank Fixed Deposits can be withdrawn prematurely except for the tax-saving Fixed Deposits. Canara Bank levies a penalty of 1% for premature withdrawal. The penalty is subject to modification according to the terms and conditions of Canara Bank.

FAQs

What is the highest interest rate for Canara Bank FDs?

For regular investors, the maximum interest rate offered is 5.50% per annum, while for senior citizen investors, the highest rate is 6.00% per year.

Does Canara Bank Tax Saver Deposit have flexible tenure?

No. This particular scheme offers a fixed lock-in period of 5 years.

How to resolve queries regarding Canara Bank FD?

Investors can reach out to the bank’s Customer Care division by calling on 1800 425 0018.

What are the minimum and maximum maturity tenure for Canara Bank’s fixed deposits?

The minimum tenure is 7 days, while the maximum period can range up to 10 years based on the scheme you pick.

Can investors deposit an additional sum into an ongoing FD?

No. Adding an additional amount of money to an already existing FD account is not possible. Those looking to increase investment quantum must open a new account altogether.

Can the duration of an ongoing FD be changed midway?

No. You cannot change the tenure of a fixed deposit after an investment has started. Those looking for a different maturity period must begin a separate FD with the preferred tenure.

What is the minimum deposit for opening the Canara Bank fixed deposit scheme?

Investors need to deposit at least Rs. 1000 in their FDs with Canara Bank.

What is the current interest rate range for Canara Bank FDs?

The regular FD rates range between 2.95% and 5.50% annually.

How much loan can investors avail against fixed deposits?

Investors can avail up to 90% of their FD value as loans. For instance, if an FD is worth Rs. 2 Lakh, the investor can avail a credit of up to Rs. 1.80 Lakh.

Calculate Canara Bank FD Interest
Investment Amount
₹25,000.00
Time Period
9 Months
1 Year
2 Years
3 Years
Maturity Amount
Canara Bank
@5.2% p.a
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online upto 0%
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