Canara Bank Senior Citizen FD Rates 2025

What is a Canara Bank Senior Citizen FD?

A Canara Bank Senior Citizen Fixed Deposit (FD) is a specialised type of fixed deposit account offered by Canara Bank specifically for individuals who are 60 years of age or older. Senior citizens can also take out a loan against the FD and opt for features like auto-renewal. Premature withdrawal is permitted for callable FDs but comes with a 1.00% penalty. You can check the current Canara Bank FD interest rates to view the latest rates offered on these deposits. Let’s explore Canara Bank senior citizen FDs, their key features, and how to open an FD account.

Key Benefits of Canara Bank Senior Citizen FD

Here are some of the key benefits of the Canara Bank Senior Citizen FD:

• Interest Payout Options: Canara Bank offers various interest payout options for senior citizens, including monthly, quarterly, half-yearly, or cumulative payouts. In the cumulative option, the interest earned is added to the principal and paid as a lump sum at maturity.
• Minimum Investment Amount: Senior citizens can open a Canara Bank fixed deposit with a minimum investment of ₹1,000. There is no upper limit on the deposit amount, allowing flexibility based on senior citizens' financial preferences.
• Auto-Renewal Facility: The auto-renewal option is useful for senior and super-senior citizens who may not wish to visit the bank frequently or be less comfortable with online banking. When opening the FD, depositors can choose the renewal terms, including the tenure and interest payout preference.
• Sweep-in/Sweep-out Facility: The Canara Bank sweep-in facility links the senior citizen fixed deposit with a savings account. Surplus funds above a defined threshold are automatically transferred into a fixed deposit. Typically requiring a minimum FD of ₹25,000 for this linking. If the balance falls below the minimum threshold, the sweep-out facility enables transfer back to the savings account.

Canara Bank FD Interest Rates for Senior Citizens

Canara Bank offers attractive fixed deposit (FD) interest rates for senior citizens with various tenures and deposit options. These include:

Canara Bank FD Rates for Senior Citizens (Less than ₹3 Crore, Callable)

Canara Bank FD interest rates w.e.f Aug 07, 2025

Canara Bank FD Interest Rates for Senior Citizens (Less than ₹3 Crore, Non-Callable)

Canara Bank FD interest rates w.e.f. July 07, 2025

How to Open a Canara Bank Senior Citizen FD?

Opening a Canara Bank Senior Citizen Fixed Deposit is easy. You can do it online or by visiting a branch, whichever is convenient.

1. Online Method

   If you have NetBanking or Mobile Banking access with Canara Bank:

   • Log in to your Canara Bank account using NetBanking or the Canara ai1 mobile app.
   • Go to the “Fixed Deposits” section and select “Open New FD.”
   • Enter the deposit amount and choose the tenure.
   • Select “Senior Citizen FD” and choose your interest payout option, cumulative or periodic.
   • Add nominee details, review everything, and submit.
   • Your FD will be created instantly, and you’ll get confirmation via SMS and email.

2. Offline Method

   If you prefer to open it at a branch:

   • Visit the nearest Canara Bank branch.
   • Ask for the Fixed Deposit application form and fill in the required details.
   • Submit age proof (Aadhaar, PAN, Voter ID, etc.), a passport-size photo, and your Canara Bank account details.
   • Deposit the amount through cash or cheque.
   • The bank will issue a receipt once the FD is created.

Taxation on Canara Bank Senior Citizen FD Interest

Interest earned on Canara Bank Senior Citizen Fixed Deposits is taxable and is added to the total income of the depositor, taxed as per the applicable income tax slab. From April 1, 2025, TDS will be deducted only if the total interest earned in a financial year exceeds Rs. 1 lakh. Senior citizens can submit Form 15H to avoid TDS if their income exceeds the taxable limit. Additionally, under Section 80TTB of the Income Tax Act, they can claim a deduction of up to ₹50,000 lakh on interest earned from fixed deposits and savings accounts. Tax-saving fixed deposits with Canara Bank are eligible for deductions under Section 80C, but the interest income from these deposits remains taxable.

Key Takeaways

Canara Bank Senior Citizen Fixed Deposits are term deposit schemes designed for individuals aged 60 and above. They provide flexible tenure options, various interest payout choices, loan facilities against the deposit, and an auto-renewal feature. Tax benefits under Section 80TTB are available for eligible senior citizens, allowing a deduction of up to ₹50,000 on interest income. However, all interest earned beyond this is taxable as per the individual’s slab, and TDS applies if annual interest exceeds ₹1 lakh. While premature withdrawal is allowed, it applies only to callable FDs and may involve a 1.00% penalty or reduced interest rate.