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Canara Bank Fixed Deposit

Updated 06 Dec 2023

Canara Bank is one of the oldest banks in India. It was founded in July 1906 in Mangalore, and it got nationalised in the year 1969. Currently, the bank has 9,720 branches and 12/147 ATMs across all the states and Union Territories in India.

Fixed Deposits are one of the traditional methods of investing where you get a fixed rate of return, and also it is one of the safest investment options.

Canara Bank provides various types of FD schemes where customers can choose the best-suited scheme for themselves. This article gives you detailed insights into Canara Bank's fixed deposits.

Types of Canara Bank Fixed Deposits

  • Fixed Deposits 
  • Kamdhenu Deposit 
  • Canara Tax Saver Scheme
  • Ashraya Deposit Scheme
     

Benefits of Canara Bank Fixed Deposit Schemes

The following are the benefits of investing in Fixed Deposit Schemes offered by Canara Bank:

  • Various Schemes- Canara Bank provides investors with a diverse range of schemes and chooses the best-suited scheme for themselves.
  • Minimum amount- FD of amount as less as ₹100 can be opened with Canara Bank. 
  • Other facilities- It also provides sweep-in and super saver facilities. 
  • Liberal payouts- Canara Bank provides options for monthly or quarterly payouts of interest on FD. This is beneficial for people who wish for regular income. 
  • Tax-benefits- Canara Bank's Five years saving FD offers exemptions under Section 80, thus helping to save taxes.  
  • DICGC Coverage- The amount invested with the Bank is covered by DICGC insurance for the total sum of ₹ 5 lakhs.

Features of Canara Bank Fixed Deposits

  • The minimum amount to open this FD account is as small as ₹1000, and there is no limit on the maximum investment
  • The minimum time period of investment is 15 days.
  • The interest payment tenure can be monthly, quarterly or yearly as per the investor's choice.
  • Facilitates partial withdrawal in the units of ₹1000 but can earn interest on the rest of the deposited amount.
  • If the amount is not withdrawn on maturity it is left unclaimed, then also it will attract interest as applicable to the savings account or the prevailing rate of interest, whichever is lower.

Features of Canara Bank Kamdhenu Deposit

  • The minimum time to invest is 5 months
  • The minimum amount to open this FD account is as small as ₹1000, and there is no limit on the maximum investment
  • The interest payment tenure is quarterly.
  • A loan facility is available for up to 90% of the amount of FD.
  • Facilitates partial withdrawal in the units of ₹1000 but can earn interest on the rest of the deposited amount.
  • If the amount is not withdrawn on maturity it is left unclaimed, then also it will attract interest as applicable to the savings account or the prevailing rate of interest, whichever is lower.
  • A nomination facility is also available.

Features of Canara Bank Tax Saver Scheme

  • The motive of this FD is to offer both earnings and tax benefits. 
  • Allows saving tax under Section 80c of the Income Tax Act 1961
  • The minimum deposit amount can be ₹100 (and then in the multiples of ₹100 thereafter), and the maximum deposit can be ₹1.5  lakhs. 
  • The minimum tenure of investment is 5 years.
  • Provides options for monthly and quarterly payouts. 
  • The loan facility is not available.
  • This scheme does not facilitate premature closure except in case of the death of the depositor.

Features of Canara Bank Ashraya Deposit Scheme

  • This FD scheme is specially designed for senior citizens (above the age of 60 years).
  • The interest rate is 0.50% higher than the other FD schemes. 
  • The minimum amount to open this FD account is as small as ₹1000, and there is no limit on the maximum investment
  • The minimum time period of investment is 15 days.
  • The interest payment tenure can be monthly, quarterly or yearly as per the investor's choice.
  • A loan facility is available for up to 90% of the amount of FD.
  • The nomination facility is also available.

Eligibility Criteria

To invest in Canara Bank Fixed Deposits, the following are eligible:

  • Resident Indian
  • Sole proprietorship firms
  • Partnership firms
  • Trust accounts
  • Hindu undivided families
  • Limited companies

Documents Required

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer

  • For Identity Proof and Signature Proof – PAN Card, Driving License, Passport, Voter’s ID or Aadhar Card.
  • For Address proof - PAN Card, Driving License, Passport, Voter’s ID or Aadhar Card, Utility Bill, Bank account Passbook (Updated and should not be more than 3 months old)
  • If a PAN card is not available, then forms 60 and 61 should be presented.

How to Open Canara Bank Fixed Deposit Account?

If the investor has a saving account or current account with Canara Bank, then, Fixed deposit account can be opened in both online and offline way-

Online way:

Step 1- Login to the Canara Bank Net banking option

Step 2- Enter the user ID and password

Step 3- Fill in the required details 

Step 4- Enter the amount of the deposit and select the tenure of FD. Also, enter the nominee details.

Step 5- Click confirm and continue.

Offline way:

Step 1- Visit the bank branch.

Step 2- Take the FD application form. 

Step 3- Fill in the required details and submit the necessary documents. 

Step 4- Submit the form to the branch.

How to Close Canara Bank FD?

To close the Canara Bank FD, please follow the steps below:

  • Visit the Bank Branch.
  • Fill out the premature FD closure form.
  • Attach your KYC documents.
  • Submit your FD receipt or certificate along with the documents.

Canara Bank Fixed Deposit Scheme Premature Withdrawal Terms and Conditions

In case of premature withdrawal, the lower of the below two amounts will be applicable as interest rates on them:

  • The base rate for the original tenure of the deposit
  • The base rate is applicable for the tenure for which the deposit has been with the bank
  • This base rate will be applicable for all deposits with the amount of less than ₹2 crores on the date of applying for FD. 
  • In case of premature withdrawals, Canara Bank levy a penalty of 1%. This penalty is not applicable if FD has a tenure of 7-14 days. 

FAQs

What is the minimum amount of FD one can open in Canara Bank?

One can open ₹1000/- minimum amount FD with Canara Bank.

Can investors apply for a loan against all Canara Bank FD?

No, investors cannot secure a loan against the Canara Tax saver term deposit scheme.

 Is Canara bank FD safe?

Canara Bank fixed deposits are secure as they are insured for up to ₹ 5 lakh, which includes both the principal and interest amount, under the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per RBI guidelines.

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Canara Bank

Calculate Canara Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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