Canara Bank NRE FD Rates

Canara Bank is one of the largest and oldest public banks in India. Administered under the Ministry of Finance, the bank has several national and international branches. It offers many instruments for its customers to invest in. And among those instruments, a fixed deposit account for NRIs is a good option for those individuals who do not reside in India but want to park their money in India. With Canara Bank fixed deposits for NRIs, they can easily do so by opening a special account in the bank and can avail all the benefits of the scheme.

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Canara Bank FD for NRIs   

Canara Bank offers its NRI customers the facility of opening a fixed deposit account in India. Customers can check the Canara Bank NRI FD rates before opening a fixed deposit account. A fixed deposit is an instrument that allows one to invest their money for a fixed period of time and will earn a higher interest rate as compared to the conventional savings account.

A fixed deposit comes with a pre-requisite of not withdrawing the money before the maturity period. If in some cases, customers do want to withdraw their money before the completion of the maturity, they can do so by paying the penalty as mentioned in the given documents.  These FD holders can also get loans against various types of accounts, like NRO, NRE, and FCNR to meet their various financial requirements. This loan can be applied up to a percentage of FD amounts which is deposited in the bank.

The bank decides the interest rates on the fixed deposit, so before investing in the fixed deposit, check the bank's prevailing interest rate. Canara Bank NRE Interest Rate is subject to change at the discretion of the bank.

Types of FD for NRIs

The bank offers its NRI customer four different types of fixed deposit accounts to invest in. All these accounts come with their own merits and benefits. One must check all the details related to all four fixed deposit accounts available before deciding which one to go for. The account types are:

  • NRE FD Account
  • NRO FD Account
  • FCNR(B) Account
  • RFC FD Account

Here is the list of all these accounts and necessary information related to them along with their distinct characteristics:

Canara Bank NRE (Non-Resident External) Fixed Deposit

  • The NRE Fixed Deposit Accounts are available for a period of one to ten years.
  • The deposits are made in Indian Currency i.e. Rupees.
  • NRI & POIs or Persons of Indian Origin (except Pakistani & Bangladeshi nationals) are eligible to open this account and deposit their money.
  • This kind of an NRE account can be opened jointly by eligible NRIs or PIOs.
  • This account provides for the Nomination facility.
  • The account is repatriable, i.e., funds can be moved from the NRE’s country of residence to his country of origin, i.e. India.
  • The funds in this type of account are exempted from tax liability.
  • The account holder of this account can withdraw funds prematurely after one year, subject to a 100% penalty.
  • One can also take a loan against this type of FD.
  • NRE FD account holders can avail of a loan in foreign currency as well.

Canara Bank NRO (Non-Resident Ordinary) Fixed Deposit

  • The NRO Accountsare available for a period of seven days to ten years.
  • The deposits are made in Indian Currency i.e. Rupees.
  • NRI & POIs or Persons of Indian Origin (except Nepal & Bhutan residents) are eligible to open this account and deposit their money. Pakistani & Bangladeshi nationals, if interested in opening this account, will require approval from the RBI.
  • This kind of an NRO account can be opened jointly by eligible NRIs or PIOs.
  • This account provides for the Nomination facility.
  • The account is non-repatriable, i.e., funds cannot be moved from the NRE’s country of residence to his country of origin, i.e. India. Exceptions are :
    • Amount below $1 million per financial year
    • Income should be current as per FEMA declaration submission and tax compliance rules.
  • The funds in this type of account are taxable in India.
  • Account holders of these NRO accounts can take a loan against FD in India.

FCNR (B) FD Account

  • Stands for Foreign Currency Non-Residential (Bank) Fixed Deposit account.
  • It is designed for those NRIs who wish to invest their earnings in the foreign currency only, thus removing the risk of Forex fluctuation.
  • The tenure of the scheme is between 1 year and 5 years.
  • NRI/PIOs are allowed to invest in the scheme. People from Pakistan and Bangladesh will require special permission from the RBI.
  • Premature withdrawal is allowed with a 1% penalty.
  • Can take a loan against a fixed deposit.
  • FCNR FD holders can get loans in foreign currency also.
  • A joint account can be opened with NRI/PIO/Resident, and a nomination facility is also available.
  • Automatic renewal of FD is allowed.
  • The account can be operated in USD/EUR/CAD/GBP/AUD
  • The Principal deposit in this account and the interest earned is fully repatriable, i.e., fund transfer can be done in the currency of choice.

RFC FD Account or Resident Foreign Currency Account

  • This scheme is specially designed for those NRIs who have come back to India and want to invest their foreign savings in India without converting them into Indian currency.
  • The interest earned during the scheme is not taxable in India till the time an individual has maintained the status of resident but not ordinary resident.
  • The period of the scheme is between 1 month and 3 years.
  • Returning Indians are eligible to invest in the scheme.
  • The facility of transferring into any convertible currency is provided.
  • Withdrawals or payments in India should be made in the Indian Rupee only.
  • The account can be operated in USD/EUR/CAD/GBP/AUD.

Canara Bank NRI FD Rates

The four schemes offered by Canara Bank for NRIs and their respective benefits are discussed above. Different FD accounts have different FD rates based on their type. NRE interest rates offered by Canara Bank change according to the FD amount and tenure. They can range from 3.40% to 5.50% p.a. The Fixed Deposit accounts get charged with interest at varying rates .All the interest rates are subject to change by the bank without prior notice. Now here are the Canara Bank NRI FD Rates in detail for all four schemes. The list shows interest rates applicable for deposits below and above Rs 2 Crore:

Period

 < 2 Crore

Between 2 to 10 Crore

One year

5.25%

4%

Above one year to less than two years

5.20%

3.90%

Two years to less than three years

5.40%

3.90%

Three years to less than five years

5.50%

3.40%

Five years to ten years

5.50%

3.40%

Canara Bank NRO FD Rates for less than 2 Crore of investment

Period

Rates for Regular Citizen

Rates for Senior Citizen

For 7 to 45 days

2.95%

2.95%

For 46 to 90 days

3.90%

3.90%

For 91 to 179 days

4%

4.5%

For 180 days to less than one year

4.45%

4.95%

For one year

5.25%

5.75%

For one to two years

5.20%

5.70%

For two years and less than three years

5.40%

5.90%

For three years and less than five years

5.50%

6%

For five to ten years

5.50%

6%

Canara Bank NRO FD Rates for an investment of 2 Crore and less than 10 Crore

Period

With Premature Withdrawal

Without Premature Withdrawal

For 7 to 45 days

3.05%

Nil

For 46 to 90 days

3.10%

3.15%

For 91 to 179 days

3.25%

3.30%

For 180 days to less than one year

3.30%

3.35%

For one year

4%

4.05%

For one to two years

3.90%

3.95%

For two years and less than three years

3.90%

3.95%

For three years and less than five years

3.40%

3.45%

For five to ten years

3.40%

Nil

Canara Bank FCNR (B) Fixed Deposit Rates

Period

USD

GBP

EUR

CAD

AUD

For one year and less than two years

0.97%

0.51%

Nil

1.19%

0.57%

For two years and less than three years

0.97%

0.53%

Nil

1.02%

0.62%

For three years and less than four years

0.99%

0.60%

Nil

1.12%

0.51%

For four years to less than five years

1.10%

0.65%

0.02%

1.24%

0.51%

For five years

1.20%

0.69%

0.04%

1.35%

0.51%

Canara Bank RFC Fixed Deposit Rates

Period

USD

GBP

EUR

CAD

AUD

For one month to less than three months

Nil

Nil

Nil

Nil

Nil

For three months to less than six months

0.09%

Nil

Nil

0.02%

Nil

For six months to less than one year

Nil

Nil

0.03%

Nil

Nil

For one year to less than two years

0.97%

0.51%

Nil

1.19%

0.57%

For two years to less than three years

0.97%

0.53%

Nil

1.02%

0.62%

For three years

0.99%

0.60%

Nil

1.12%

0.51%

Wrapping it up!

Canara Bank fixed deposit schemes can be an excellent venue for the NRIs to park their money in India. With Canara Bank NRI FD Rates, they can earn high-interest rates. Loan and nomination facilities add additional advantages to the schemes. The overall motive is to provide the NRI a suitable risk-free place to invest their earnings with flexible options of premature withdrawals.

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

Written By: PolicyBazaar - Updated: 20 July 2021
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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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