Canara Bank Senior Citizen FD Rates 2025

What is a Canara Bank Senior Citizen FD?

Canara Bank Senior Citizen Fixed Deposits (FD) are available for individuals aged 60 years and above, offering higher FD interest rates than regular deposits. It provides flexibility with tenures ranging from 7 days to 10 years. Besides, features like premature withdrawal for callable FDs (with a 1% penalty), auto-renewal and the option to take a loan against the FD, make it a secure and convenient investment for senior citizens seeking both safety and steady interest income.

Key Benefits of Canara Bank Senior Citizen FD

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

1. Higher Interest Rates:

   Canara Bank offers Senior Citizen FDs with rates up to 7.00% p.a. Individuals aged 60 and above get 0.50% extra interest, and super seniors (80+) earn 0.60% more on select schemes like the 444 Days Deposit over the regular Canara Bank FD interest rates.

2. Exclusive Perks and Initiatives

   Periodically, or as part of specific bank initiatives, unique perks and attributes are offered that are tailored specifically for senior citizens.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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. Aug 07, 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

Canara Bank Fixed Deposits (FDs) offer specific tax advantages, particularly for senior citizens:

• Tax-Saving FD: Investments in the Canara Bank Tax-Saver Fixed Deposit are eligible for an income tax deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act. However, the interest earned on this deposit remains fully taxable.
• Senior Citizen Interest Deduction: Senior citizens can significantly reduce their tax liability by claiming a deduction of up to ₹50,000 on their total interest income from all deposits under Section 80TTB of the Income Tax Act.
• TDS Exemption: To prevent the bank from deducting Tax Deducted at Source (TDS) on the interest earned, eligible senior citizens must submit Form 15H to the bank. This form certifies that their total income for the financial year is below the minimum taxable limit.

For scheme-specific details, including the lock-in period and current rates, check the Canara Tax-Saver FD scheme.

Key Takeaways

Canara Bank offers Senior Citizen Fixed Deposits (FDs) with attractive interest rates of up to 7.00% p.a. for individuals aged 60 and above. Senior citizens enjoy an additional 0.50% interest, while super senior citizens (80+) receive an extra 0.60% on select schemes, such as the 444 Days Deposit. These FDs provide a range of features, including loans against the deposit, tax-saving options, a sweep-in facility, and multiple interest payout choices. They can be conveniently opened online or at any Canara Bank branch.