Canara Bank Senior Citizen FD Rates

Understanding Canara Bank Senior Citizen FD

Canara Bank senior citizen FD rates offer a safe way to grow savings with an extra 0.50% interest over regular rates. You can invest for 7 days to 10 years and enjoy special schemes like the Canara 555-day plan offering up to 7.10% p.a. The account is flexible, allowing monthly interest payouts or a lump sum at the end, with a loan facility or an FD premature withdrawal.

Being a public sector bank, Canara Bank also offers guaranteed, market-risk-free returns, along with tax-saving FD options under Section 123 of the Income Tax Act, 2025 (which has replaced Section 80C). To see how these returns compare with other banks, explore the latest FD Interest Rates.

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 7.10% 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 and 555 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 benefits are offered 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 a loan against fixed deposit, which provides 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 Flexi FD auto-sweep facility links your SB Power Plus savings account to a fixed deposit. You set a minimum balance threshold of ₹25,000 or above, and any surplus funds automatically sweep into FD to earn higher interest. If your savings balance falls below that threshold, a sweep-out facility transfers the required amount back to the savings account, maintaining instant liquidity without losing out on FD rates.

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 Senior Citizens FD Interest Rates

The attractive Canara Bank FD interest rates for senior citizens are available with various tenures and deposit options, effective from March 17, 2026:

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

*Canara senior citizen FD rates w.e.f. March 17, 2026

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

*Canara senior citizen Non Callable FD rates w.e.f. March 17, 2026

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.
   • Finalise 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 issue a receipt confirming 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 123 of the Income Tax Act, 2025 (replacing Section 80C). 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 ₹1,00,000 on their total interest income from all deposits.
• TDS Exemption: To avoid TDS deduction on interest earned, eligible individuals must submit Form 121 to the bank. This form has replaced Form 15G and Form 15H as of April 1, 2026, and now applies to all age groups.

Key Takeaways

Canara Bank offers attractive senior citizens FD rates of up to 7.10% 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 and 555 Days Deposit. With added benefits like Canara loan against FD, tax savings, and the convenience of auto-renewal, the schemes offer both financial security and peace of mind during your retirement years. It is always advisable to check the latest rates on Canara Bank's official website or speak with a branch representative, as rates can change from time to time.