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. Canara Bank FD interest rates are nominal for senior citizens. The tenures range from 7 days to 10 years 

Key Benefits of Canara Bank Senior Citizen FD

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

• Higher Interest Rates: Canara Bank offers an additional interest rate of 0.50% per annum over the regular FD interest rates for the senior citizens (above 60 yeras). The Canara-444 deposit offers an even higher rate, with an additional 0.60% interest for super senior citizens.
• Multiple Interest Payout Options: You can choose how you receive the interest earned on your FD. The available options include monthly, quarterly, half-yearly, or as a lump sum at maturity.
• Loan Against FD: Canara Bank offers the facility to take a loan against your fixed deposit, providing liquidity without breaking the FD. The loan amount can be up to 90% of the deposit value.
• 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, it requires 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.
• Nomination Facility: The nomination facility is available, allowing you to designate a beneficiary to receive the FD funds in case of your passing. Being a public sector bank, it provides a high level of security and guaranteed returns, as fixed deposits are not subject to market fluctuations.

Canara Bank FD Interest Rates for Senior Citizens

The attractive Canara Bank FD interest rates for senior citizens are available with various tenures and deposit options. These include:

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

*Canara senior citizen FD rates w.e.f. Sept 04, 2025

Canara Bank FD Interest Rates for Senior Citizens Non Callable ( Above Rs 1 Crore )

*Canara senior citizen FD rates w.e.f. Sept 04, 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:

   • Login and Navigate: Log in to your Canara Bank account via NetBanking or the Canara ai1 app and go to the "Fixed Deposits" section to open a new FD.
   • Configure Your FD: Enter the deposit amount, select your desired tenure, and choose the "Senior Citizen FD" option.
   • Finalize and Submit: Pick your interest payout option, add nominee details, then review and submit the application to instantly create your FD.

2. Offline Method

   • Visit the Branch & Get Form: Go to your nearest Canara Bank branch and ask for the FD application form.
   • Submit Documents: Fill out the form and submit it along with your age proof (like Aadhaar), a photograph, and your account details.
   • Deposit Amount: Hand over the deposit amount in cash or via cheque.
   • Receive Confirmation: The bank will give you a receipt as confirmation of your new FD.

Taxation on Canara Bank FD Interest Rates for Senior Citizens

• Tax-saving fixed deposits with Canara Bank are eligible for deductions under Section 80C, but the interest income from these deposits remains taxable. However, under Section 80TTB of the Income Tax Act, senior citizens can claim a deduction of up to Rs. 50,000 on interest income from deposits.
• To avoid Tax Deducted at Source (TDS) on interest income, senior citizens can submit Form 15H to the bank if their total income is below the taxable limit. To know more about the Canara Bank Tax Saving FD, you can directly go to the bank’s website. 

Key Takeaways

Canara Bank Senior Citizen FD rates are a specialized fixed deposit for individuals aged 60 and above. It offers a higher interest rate of 0.50% extra for senior citizens and 0.60% for super senior citizens (80+) on select schemes. The FD provides flexible tenures, liquidity via loans against the deposit, tax-saving FDs, an auto-renewal facility, and a nomination facility. It can be opened easily either online or by visiting a branch.