Canara Bank is one of the biggest Indian public sector banks. It was founded in 1906 in Mangalore and is now headquartered in Bengaluru. The institution underwent nationalisation in 1969. Today, it operates more than 6300 branches and over 8800 ATMs in India. In 2020, Canara Bank is all set to merge with Syndicate Bank.
Canara Bank operates several offices abroad, in countries such as Russia, the USA, China and others. Apart from its savings accounts, Canara Bank is widely popular for its fixed deposit offerings. Customers have multiple options when it comes to picking Canara Bank fixed deposit schemes.
In this article
Benefits of Choosing Canara Bank FD
Although several financial institutions offer fixed deposit investment facilities to consumers in India, the following factors make Canara Bank FD scheme a wise move-
- Part withdrawal facility is available, allowing investors to avail a portion of their earnings even before the sum matures.
- Customers can nominate family members for their FDs.
- Automatic renewal on the maturity date for shorter-termed FDs, unless specified otherwise.
- Loan or overdraft facility available, amounting up to 90% of the total deposit.
Eligibility Criteria for Canara Bank FD
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 for Canara Bank Fixed Deposit Online
- Proof of Address
- Bank statement including cheque
- Electricity bill
- Telephone bill
- An ID or certificate issued by Post Office
- Proof of Identity
- Driving license
- PAN card
- Voter ID
- Photo ration card
Canara Bank FD Rates
Investors always look for the best returns when depositing in FDs. Canara Bank FD rates range between 4.50% and 5.95% for short term FDs (maturity period between 7 days and 365 days). Senior citizens investing in these schemes are eligible to receive an additional 0.50% interest per year, ranging between 5.00% and 6.75% p.a.
Long term FDs (maturities ranging between 5 years and 10 years) offer better returns. For investors below 60 years of age, the maximum interest rate applicable is 6.40%. Senior citizens, on the other hand, are liable to receive maximum interest at 6.90% rates per annum.
|Tenure||Non-senior citizen and NRO FD (%)||Senior Citizen FD (%)|
Different Types of Canara Bank FD Schemes
Canara Bank provides various types of FD schemes to suit the specific needs of target consumers. Listed below are some of the bank’s fixed deposit options.
- Canara Bank Fixed Deposit – Individuals, HUF members, joint account holders, companies and other organisations are eligible for this scheme. The maturity period ranges between 15 days and 10 years. Investors can start with deposits as low as Rs. 1,000.
- Canara Bank Kamadhenu Deposit – This scheme is also available to companies, joint account holders, HUF members, minors and individuals. The minimum maturity period for the scheme is 5 months, while the maximum is set at 10 years. Individuals can start small, with just an initial investment of Rs. 1,000. There is no upper limit for deposits.
- Canara Bank Tax Saver Deposit – This non-callable Canara Bank FD is apt for investors looking to save income tax liability on their interest earnings. Here, the deposit quantum can vary between Rs. 1,000 and Rs. 1.5 Lakh. It has a lock-in period of 5 years. The facility of loan against FD and premature withdrawals are not applicable under this scheme.
- Canara Bank Ashraya Deposit – This FD scheme is only available to senior citizens. The maturity period can vary between 15 days and 10 years. The minimum deposit is Rs. 1,000, with no upper limit for investments into the plan. In the case of a joint account, the second contributor does not need to be over 60 years of age.
Premature Withdrawal – Terms and Conditions
Premature withdrawal refers to the removal of the sum linked to an FD account before its maturity. This facility is available on most Canara Bank fixed deposit schemes. However, the bank charges a 1% penalty fee in such early withdrawals.
Keep in mind though investors in Canara Bank Tax Saver Deposit are not eligible for withdrawal of the sum before the mandatory 5-year term runs out.
Special Forms to Fill
Ensure to fill up Form 15G and Form 15H correctly before submitting the same at the bank. Failure to do so results in TDS on your FD interest earnings at the rate of 10%.
Submitting 15G makes you avail TDS rebate in case the total interest income is below Rs. 40,000 in a financial year. The threshold is Rs. 50,000 for senior citizens and they need to submit 15H to enjoy similar benefits.
Loan against Canara Bank FD
Canara Bank allows investors to avail a loan of up to 90% against their fixed deposit investments, for most schemes. The bank charges competitive interest on these advances. However, the loan facility is unavailable against Canara Bank Tax Saver Deposit schemes.
- What is the highest interest rate for Canara Bank FDs?
For regular investors, the maximum interest rate offered is 6.50% per annum, while for senior citizen investors, the highest rate is 7.00% 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.
- What is the eligibility criterion for Canara Bank FDs?
Everyone, including NRIs, HUF, minors, joint account holders, firms and corporations are eligible for Canara bank fixed deposit online.
- Can the duration of an on-going 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. 1,000 in their FDs with Canara Bank.
- What is the current interest rate range for Canara Bank FDs?
The regular FD rates range between 5.75% and 7.00% annually. It is higher for senior citizens.
- 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.