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 4.50% – 6.25% with a tenure of 7 days to 10 years.
In this article
- Canara Bank FD Rates
- Canara Bank Fixed Deposit Interest Rates – Special Features
- Term wise FD Rates of Canara Bank*
- Canara Bank Fixed Deposit Interest Rate Calculator
- Canara Bank Fixed Deposit Maturity – Special Features
- Canara Bank NRI Fixed Deposit
- Taxation on Canara Fixed Deposit Account
- Canara Bank FD Premature Withdrawal
- Canara Bank Fixed Deposit Interest Rates – FAQs
Canara Bank FD Rates
Below given are the Canara Bank FD interest rates 2020 for regular as well as senior citizens:
|Tenure||FD Rates||Senior Citizen FD Rates|
|7 days – 14 days||4.50%||5.00%|
|15 days – 30 days||4.50%||5.00%|
|31 days – 45 days||4.50%||5.00%|
|46 days – 60 days||5.00%||5.50%|
|61 days – 90 days||5.00%||5.50%|
|91 days – 120 days||5.50%||6.00%|
|121 days – 179 days||5.50%||6.00%|
|180 days – 269 days||5.90%||6.40%|
|270 days – 364 days||5.90%||6.40%|
|1 year 1 day – 1 year 364 days||6.00%||6.50%|
|2 years – 2 years 364 days||6.00%||6.50%|
|3 years – 10 years||6.25%||6.75%|
Canara Bank Fixed Deposit Interest Rates – Special Features
- 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 ICICI 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
Term wise FD Rates of Canara Bank*
Canara Bank Short-term Deposit FD Interest Rates: For a Canara FD with tenure ranging from 7 days to 365 days, the interest rate offered is from 6.00% p.a. to 6.50% p.a. These deposits are known as short term deposits as they have a tenure less than 1 year.
Canara Bank Medium-term Fixed Deposit Rates: 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 ranges from 6.00% p.a.- 6.25% p.a.
Canara Bank Long-term Deposit FD Rates: These deposits’ tenure ranges from 5 years to 10 years and offers an interest rate of 6.25% – 6.75% p.a.
Canara Bank Senior Citizen Interest Rates: Senior citizens are offered a 0.50% additional interest rate of 0.50% on all FD tenures. The FD rate of returns range from 5.50% p.a. and 6.75% p.a.
*Note – All deposits are for less than 2 crore
Canara Bank Fixed Deposit Interest Rate Calculator
If a customer wants to calculate the interest accrued his/her FD at the time of maturity, the Canara Bank FD calculator is the best tool to use. It helps to calculate the interest in a monthly, quarterly, half-yearly or annual frequency or the when the interest is compounded, in a hassle-free way. All you have to do is enter the basic details of your FD like the deposit amount and tenure. The interest earned on the FD depends on various factors including:
Interest Rate: Canara Bank offers a comparatively higher rate of interest on Fixed Deposits that are held for a longer tenure. FDs with shorter tenure offers a lower interest rate.
Deposit: The deposit amount also affects the interest rate sometimes. Higher the amount more is the interest rate offered by the bank. The least amount for any fixed deposit is Rs. 1000, while the higher amount has no cap on it.
Tenure of Deposit: Longer tenure fixed provides a higher interest rate. The minimum tenure of the deposit should be 15 days and maximum tenure is 120 months (10 years). If the depositor wants to make a deposit between 7 and 14 days, it should be a single deposit of Rs. 5 lakh or above.
Canara Bank Fixed Deposit Maturity – Special Features
Automatic Renewal: As the name implies, this feature automatically renews the FD on the maturity date. If the depositor chooses automatic renewal while opening the account, the fixed deposit is renewed on the maturity date with the same interest rate prevailing on that particular day. However, deposits under Canara Capital Gains Scheme, Tax Saver Scheme and Non-callable term deposits, renewal option is not provided.
Overdue Term Deposit: In case the depositor has not opted for the automatic renewal option, the amount after the maturity remains in the bank. This is called an overdue term deposit. The overdue term deposit attracts interest at the prevailing Savings Bank rate from the day of maturity till the date of payment/re-investment.
Canara Bank NRI Fixed Deposit
NRI’s can also open an FD account with Canara Bank in simple steps. Canara Bank provides the following FD options to NRIs for opening an account:
NRO (non-resident ordinary) FD: NRIs can jointly open an account with an Indian Resident. The rate of interest is the same as domestic term deposit rates. The account can be opened with INR only. The bank offers loan facility against the deposit amount.
NRE (non-resident external rupees) FD: This type of account can be opened with any of your close relatives residing in India. This account can be opened only with Indian Rupees and loan facility can be availed against the deposit amount.
FCNR (foreign currency non-resident) FD: This account can only be opened jointly with another NRI only and loans can be availed against the deposit amount. This account can be opened with currencies including USD, EURO, CAD, JPY. Interest income is exempted from tax under income tax laws.
Taxation on Canara Fixed Deposit Account
Customers who have a PAN Card as well as those who haven’t are required to declare interest income and pay tax on it. The bank deducts TDS at a 10% rate for the customers who have submitted their PAN details while for those who haven’t, TDS is deducted at a 20% rate.
Canara Bank FD Premature Withdrawal
A penalty of 1.00% shall be levied for premature closure of the account or deposits less than Rs. 2 crore. However, no penalty will be levied if the deposited amount is 2 crores or more.
Canara Bank Fixed Deposit Interest Rates – FAQs
What is the minimum deposit to open a Canara Bank FD account?
The minimum deposit amount required to open a fixed deposit account with Canara Bank is Rs. 1000.
Can we add an additional amount to the FD account?
No, the amount needs to be deposited at the time of opening the account and depositing during ongoing tenure is not allowed.
Can we change the tenure of the existing FD account?
No, customers cannot change the tenure of their fixed deposit.
What happens if we open an FD account without a PAN card?
Opening an FD account without PAN can have a number of implications such as:
- TDS certificates won’t be issued.
- TDS will be deducted at 20% instead of 10%, under section 206AA.