Canara Bank FD Rates

Canara Bank offers different kinds of fixed deposits or term deposits option to domestic as well as NRI customers. The Canara Bank FD interest rates on these deposits are decent and provide guaranteed returns to its investors. Canara Bank offers higher fixed deposits interest rates to senior citizens. This article throws light on the rate of interest on FD in Canara bank.

Up to a year, the highest rate of interest for FD is 5.40%. For a tenure of more than a year, it’s 5.35% and for a tenure of 3 years to 10 years, it is 5.30%. If carefully examined, the Canara Bank FD rates are found closer to each other after the maturity period of 1 year.

Canara Bank FD Rates in India
Tenure General Public FD Rates Senior Citizen FD Rates
7 days to 14 days 3.50% 3.50%
15 days to 30 days 3.50% 3.50%
31 days to 45 days 3.50% 3.50%
46 days to 60 days 4.30% 4.30%
61 days to 90 days 4.30% 4.30%
91 days to 120 days 4.30% 4.30%
121 days to 179 days 4.30% 4.30%
180 days to 269 days 4.85% 5.35%
270 days to 364 days 4.85% 5.35%
1 year 5.50% 6.00%
1 year 1 day to 1 year 364 days 5.50% 6.00%
2 years to 2 years 364 days 5.50% 6.00%
3 years to 10 years 5.45% 5.95%

Canara Bank FD Rates Today

Investment Amount Minimum - Rs.1000 Maximum- No Maximum Limit
Tenure Minimum - 7 daysMaximum- 10 Years
Interest Rate  Minimum - 3.50 %Maximum- 5.45%

The rates are less in case the FD grows to the highest maturity period of ten years. This is due to the evaluation of FD interest rates in which it diminishes in a few years.

So, the bank fixes the range of positive degenerating relations and establishes the rate of interest a little lower than a fallback contract in case of long-term investments lying between 5 years and 10 years.

Key Features of Canara Bank Fixed Deposits

  • Competitive interest rates on all the fixed deposits
  • Canara Bank fixed deposits start from Rs 1000 with no upper limit
  • Loan facility up to 90 per cent of the FD amount is also available
  • Your spouse or any other family member can be nominated to get the maturity amount
  • NRO, FCNR and NRE deposit facility is available
  • Both online and offline FD option available

Canara Bank Fixed Deposit Rates

Canara Bank FD rates keep changing frequently. Thus, it is advisable to reconfirm the Canara Bank FD interest rates from the Bank before making any decision to open an FD account.

For Domestic Deposits of Less Than Rs 2 Crore:

Maturity Period

Canara Bank FD Interest Rates (% p.a.)

General Public

Senior Citizens

7 days to 45 days

3.00

3.00

46 days to 90 days

4.00

4.00

91 days to 179 days

4.05

4.05

180 days to less than 1 year

4.50

5.00

1 year

5.40

5.90

1 year and above to less than 2 years

5.35

5.85

2 years and above to less than 3 years

5.35

5.85

3 years and above to less than 5 years

5.30

5.80

5 years and above to 10 years

5.30

5.80

Note: The above mentioned Canara Bank FD rates for domestic deposits are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice.

For Domestic Deposits of Rs 2 Crore and Above

Canara Bank FD Interest Rates (% p.a.)

Maturity Period

General Public

7 days to 45 days

3.05

46 days to 90 days

3.10

91 days to 179 days

3.25

180 days to less than 1 year

3.30

1 year

4.65

1 year and above to less than 2 years

4.10

2 years and above to less than 3 years

4.10

3 years and above to less than 5 years

3.50

5 years and above to 10 years

3.50

Note: The above mentioned Canara Bank FD rates for domestic deposits are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice 

Tax Saver Canara Bank FD Rates (Max Deposit - Rs 1.5 lakh)

Maturity Period

Canara Bank FD Interest Rates for Tax Saving Deposits (% p.a.)

General Public

Senior Citizens

Canara Tax Saver Scheme - 5 years

5.30

5.80

Note: The above mentioned FD interest rates by Canara Bank for tax saving deposits are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice 

Tax Implications

  • The amount invested in fixed deposit with a tenure of 5 years with Canara Bank is eligible for tax deduction* under IT section 80C, whereas the interest earned on the investment is taxable.
  • The applicable tax will be deducted at source, i.e. Canara Bank, in case the annual interest earned crosses Rs 40,000 in case of the general public and Rs 50,000 in case of senior citizens.

*Tax benefit is subject to changes in tax laws

For NRO Fixed Deposit of Less Than Rs 2 Crore

Canara Bank NRO FD Rates (% p.a.)

Maturity Period

General Public

7 days to 45 days

3.00

46 days to 90 days

4.00

91 days to 179 days

4.05

180 days to less than 1 year

4.50

1 year

5.40

1 year and above to less than 2 years

5.35

2 years and above to less than 3 years

5.35

3 years and above to less than 5 years

5.30

5 years and above to 10 years

5.30

Note: The above mentioned Canara Bank NRO FD rates are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice 

For NRO Fixed Deposit of Rs 2 Crore and Above

Canara Bank NRO FD Rates (% p.a.)

Maturity Period

General Public

7 days to 45 days

3.05

46 days to 90 days

3.10

91 days to 179 days

3.25

180 days to less than 1 year

3.30

1 year

4.65

1 year and above to less than 2 years

4.10

2 years and above to less than 3 years

4.10

3 years and above to less than 5 years

3.50

5 years and above to 10 years

3.50

Note: The above mentioned Canara Bank NRO FD rates are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice.

For NRE Fixed Deposits of Less Than Rs 2 Crore

Maturity Period

Canara Bank NRE FD Rates (% p.a.)

1 year

5.40

1 year and above to less than 2 years

5.35

2 year and above to less than 3 years

5.35

3 year and above to less than 5 years

5.30

5 year and above to 10 years

5.30

Note: The above mentioned Canara Bank NRE FD rates are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice.

For NRE Fixed Deposits of Rs 2 Crore and Above

Maturity Period

Canara Bank NRE FD Rates (% p.a.)

1 year

4.65

1 year and above to less than 2 years

4.10

2 year and above to less than 3 years

4.10

3 year and above to less than 5 years

3.50

5 year and above to 10 years

3.50

Note: The above mentioned Canara Bank NRE FD rates are applicable w.e.f. 10 August 2020 and are subject to change without any prior notice 

Canara Bank Fixed Deposit Scheme

The Canara Bank offers four types of fixed deposit schemes for domestic customers. They are:

  1. Regular FD Scheme
  2. Tax Saver Deposit Scheme
  3. Kamdhenu Deposit Scheme
  4. Ashraya Deposit Scheme.

 

Take a look at each of these schemes in detail:

Regular Fixed Deposit Scheme

The Regular Fixed Deposit Scheme allows a person to park his/her savings into the FD account to earn attractive returns on it. The scheme is low on risk and comes with a lot of flexibility. Some of the features of the Regular FD Scheme are:

  • The account can be opened with a minimum investment of Rs 1000.
  • It is available for a minimum deposit period of 15 days to a maximum of 120 months. Although, the deposit can be made for a period of 7 to 14 days in case of a single investment of Rs 5 lakh and above.
  • The interest is paid monthly, quarterly, half-yearly or annually (as chosen) as per the applicable Canara Bank FD rates.
  • Senior citizens are paid a higher interest rate of 0.50% over regular Canara Bank FD interest rates, irrespective of the deposit amount or period.
  • A loan of up to 90% of the investment amount can be availed against the FD.
  • Nomination facility and partial withdrawal facility is available.
  • A penalty of 1% is applicable on FD of below Rs 2 crore in case of partial withdrawal or premature account closure if the deposits were made/ renewed on or after 12th March 2019.
  • TDS is also applicable on the interest amount earned by the account holder.
  • The deposits will be automatically renewed for the same duration as per the prevailing Canara Bank FD interest rates unless specified otherwise.
  • Interest will be paid on overdue deposits.

Tax Saver Deposit Scheme

The Tax Saver Deposit Scheme is a fixed deposit scheme that allows a person to earn tax deductions on his/her investments for up to Rs 1.5 lakh per financial year as per Section 80C of the IT Act, 1961. Some of the features of the Tax Savers Deposit Scheme are:

  • The account can be opened with a minimum investment of Rs 100 and a maximum of Rs 1.5 lakh.
  • It comes with a fixed lock-in period of 5 years during which no withdrawals can be made.
  • The interest is paid monthly or quarterly as per the applicable Canara Bank FD rates. However, Kamdhenu Deposit Scheme holders will earn compound interest quarterly.
  • The account holder can neither get a loan against this tax-saving FD nor can close the account prematurely.
  • The nomination facility is available under this scheme, except for accounts held or applied on behalf of a minor.

Kamdhenu Deposit Scheme

The Kamdhenu Deposit Scheme is a re-investment plan that allows people to earn compound interest on their investments. Some of the features of Kamdhenu Deposit Scheme are:

  • The account can be opened with a minimum investment of Rs 1000.
  • It is available for a minimum deposit period of 5 months and a maximum of 120 months.
  • The interest is compounded quarterly as per the applicable Canara Bank FD interest rates and is paid on maturity.
  • A higher interest rate of 0.50% over the regular Canara Bank FD rates is applicable on deposits made by senior citizens, irrespective of the deposit amount or period.
  • Nomination facility and partial withdrawal facility is available.
  • Interest will be paid on overdue deposits.
  • A loan of up to 90% of the investment amount can be availed against the FD.
  • The deposits will be automatically renewed for the same duration at the prevailing Canara Bank FD interest rates unless specified otherwise.
  • In case of partial withdrawal or premature account closure, a penalty of 1% is applicable on FD of below Rs 1 crore made/ renewed on or after 4th February 2011.
  • TDS is also applicable on the interest amount earned by the account holder.

Ashraya Deposit Scheme

The Ashraya Deposit Scheme has been designed for senior citizens who have existing FD account or Kamdhenu deposit account. It allows the depositors aged 60 years and above to earn a higher interest rate on fixed deposits. Some of the features of Ashraya Deposit Scheme are:

  • The account can be opened with a minimum investment of Rs 1000.
  • It is available for a minimum deposit period of 15 days to a maximum of 120 months. Kamdhenu account holders will have to make a deposit for at least 5 months.
  • An interest rate equivalent to 0.50% higher than the applicable Canara Bank FD interest rates is paid, irrespective of the deposit amount or period.
  • The depositor can choose for either monthly, quarterly or half-yearly interest payment. The interest on Kamdhenu deposits will be compounded quarterly and will be paid on maturity.
  • A loan of up to 90% of the investment amount can be availed against the FD.
  • Both partial withdrawal and nomination facility is available.
  • The deposits will be automatically renewed for the same duration at the prevailing Canara Bank FD rates unless specified otherwise.
  • TDS is also applicable on the interest amount earned by the account holder.
  • In case of partial withdrawal or premature account closure, a penalty of 1% is applicable on FD of below Rs 1 crore made/ renewed on or after 4th February 2011.

Canara Bank Fixed Deposit Special Maturity Features

The Canara Bank fixed deposit schemes come with two types of special maturity features:

1. Automatic Deposit Renewal

The automatic deposit renewal feature renews your fixed deposit automatically on its date of maturity. It is renewed for the same deposit period at the prevailing Canara Bank FD rates as on the date of maturity. This feature is applicable in case the depositor opts for it at the time of opening the FD and also if no renewal instructions have been provided to the Bank. However, this feature is not available under Canara Tax Saver Deposit Scheme, Capital Gains Scheme and Non-callable Term Deposits.

2. Overdue Term Deposit

The overdue term deposit feature ensures that your fixed deposit amount does not get renewed and stays with the Bank after the maturity date. Such matured fixed deposits are treated as an overdue term deposit from the maturity date. An interest rate, equivalent to the prevailing savings bank rate, will be paid for the overdue period. The overdue period refers to the period between the FD maturity date and date of payment or reinvestment. This feature can is applicable in case the depositor does not opt for automatic deposit renewal option.

Canara Bank Fixed Deposit Schemes for NRIs

The Canara Bank also allows non-resident Indians or NRIs to start a fixed deposit account with them. The Bank provides them with three types of fixed deposits options. Take a look:

NRO Fixed Deposit

The NRO (or Non-Resident Ordinary) Fixed Deposit account can be opened jointly by an NRI and an Indian resident. This type of account can be opened for a minimum of 15 days to a maximum of 10 years. The deposit should be made in Indian rupees only. The interest on an NRO deposit is equivalent to the applicable Canara Bank FD rates for domestic deposits. Moreover, the loan and nomination facility is available under this type of FD.

NRE Fixed Deposit

The NRE (or Non-Resident External Rupees) Fixed Deposit account can be opened by an NRI along with any close relative staying in India. This type of account can be opened for a minimum of 1 year to a maximum of 10 years. The deposit should be made with Indian rupees only. The interest is paid as per the applicable Canara Bank FD rates for NRE deposits. Moreover, the interest amount earned under this FD is exempted from tax deductions. This deposit also allows for a loan as well as the nomination facility.

FCNR Fixed Deposit

The FCNR (or Foreign Currency Non-Resident) Fixed Deposit account can be opened jointly by NRIs only. This type of account can be opened with international currencies, such as USD, CAD, EURO, AUD and GBP for a minimum deposit period of 1 year to a maximum of 5 years. The interest is paid as per the applicable Canara Bank FD rates for FCNR deposits. Moreover, the interest amount earned under this FD is exempted from tax deductions. This deposit also allows for loan and nomination facility.

Who Should Invest in Canara Bank FD Schemes?

The Regular Fixed Deposit Scheme of Canara Bank should be opted by people who simply want to invest their savings to earn a handsome interest with negligible risks. Anybody, including senior citizens, can start this FD as it requires only Rs 1000 to invest. This is also ideal for minors as the investment can be made in their name.

 

The Canara Tax Saver Deposit Scheme should be opted by people who want to claim tax deductions under the Income Tax Act. It is best suited for people with regular salaries, tax-paying professionals and businessmen. However, only people who do not plan to withdraw the amount before 5 years should invest as it comes with a lock-in period of 5 years.

 

The Canara Kamdhenu Deposit Scheme should be opted by people who want to continue earning interest with minimal risks on the investment over a long period of time. It is ideal for people with regular income who also have savings of their own.

 

The Canara Ashraya Deposit Scheme should be opted by senior citizens who wish to earn additional interest on the deposited amount. People with both regular FD and Kamdhenu deposit can apply for this scheme.

Eligibility Criteria for Canara Bank FDs

The following individuals and groups are eligible to open a Canara Bank fixed deposit account-

  • Partnership firms
  • Individual/ Joint Account
  • Minors
  • Trusts
  • Joint Hindu families
  • Limited companies
  • Municipalities
  • Partnership firms
  • Educational institutions
  • Associations
  • Societies

Canara Bank FD Interest Rates Calculator

By using a Canara Bank FD calculator online, you can easily calculate the maturity value of your fixed deposits.

The FD calculator determines the maturity amount at the end of the term by taking into consideration the tenure of fixed deposits, Canara Bank FD rates, the amount deposited and compounding frequency of interest on deposits.

Premature Withdrawal of Canara Bank Fixed Deposits

In case you opt for premature closure of your fixed deposits, then the rate of interest applicable on your FD will be 1% lesser than the original rate. However, the penalty on premature closure can be changed by the Bank.

Loan Against Canara Bank Fixed Deposits

Canara Bank provides loan up to 90% against fixed deposits. However, you will not get a loan against a Canara Bank FD in another bank.

The tenure of the loan is restricted up to the tenure of the FD.

Documents Required to Open a Canara Bank FD Account

1. Address Proof

  • Bank Statements( with Cheque)
  • Passport
  • Telephone/ Electricity Bill
  • A post office issued ID card or certificate

Identity Proof

  • Voter ID card
  • Passport
  • Driving licence
  • PAN card
  • Photo ration card
  • Government ID/ Senior citizen ID card

Tax Benefits on Canara Bank Fixed Deposits

Canara Bank provides tax exemption benefits* on their Fixed Deposit and Kamadhenu deposits with a lock-in period of minimum 5 years. The tax exemption limit is up to Rs 1.5 lakhs under the purview of the Sec. 80 C.

The tax levied on fixed deposits doesn’t depend on the tenure of your fixed deposits. It is based on the income tax bracket you fall into.

10% TDS is applicable if the interest earned on your deposits is more than Rs 40,000 in case of the general public and Rs 50,000 in case of senior citizens. Upon deduction, a TDS certificate will be given by the Bank.

*Tax benefit is subject to changes in tax laws

FAQs

Written By: PolicyBazaar - Updated: 15 October 2020
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