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Canara Bank FD Interest Rate

Canara Bank is one of the oldest banks in India It was founded in July 1906 in Mangalore and it got nationalized in the year 1969. Canara bank has a network of 9,706 branches and 12,130 ATMs/Recycler ...Read More

Canara Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 Days to 45 Days4 %4 %
46 Days to 90 Days5.25 %5.25 %
91 Days to 179 Days5.5 %5.5 %
180 Days to 269 Days6.25 %6.75 %
270 Days to less than 1 Year6.5 %7 %
1 Year Only7 %7.5 %
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444 Days
7.25 %7.75 %
Above 1 Year to less than 2 Years6.9 %7.4 %
2 Years & above to less than 3 Years6.85 %7.35 %
3 Years & above to less than 5 Years6.8 %7.3 %
5 Years & above to 10 Years6.7 %7.2 %

Types of Canara Bank Fixed deposits

Fixed Deposits 

  • The minimum amount to open this FD account is as small as ₹1000 and there is no limit on 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  • If the amount is not withdrawn on the maturity it is left unclaimed then also it will attract interest as applicable to the savings account or the prevailing rate of interest whichever is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.

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 maximum investment
  • The interest payment tenure is quarterly.
  • Loan facility is available 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  • If the amount is not withdrawn on the maturity it is left unclaimed then also it will attract interest as applicable to the savings account or the prevailing rate of interest whichever is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.
  • Nomination facility is also available.

Canara 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. 
  • Loan facility is not available.
  • This scheme does not facilitate premature closure except in case of the death of the depositor

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 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.
  • Loan facility is available up to 90% of the amount of FD.
  • The nomination facility is also available.

Pros of investing in Canara Bank Fixed Deposits

  1. Various Schemes- Canara bank provides a diverse range of schemes to the investors and chooses the best-suited scheme for themselves.
  2. Minimum amount- FD of amount as less as ₹100 can be opened with Canara bank.
  3. Other facilities- It also provides sweep-in to its SB Power Plus Savings Bank account with the bank.
  4. 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.
  5. Tax-benefits- Canara bank's 5-year tax saving FD offers exemptions under Section 80C of Income Tax Act of 1961.
  6. DICGC Coverage- The amount invested with the Bank is covered by DICGC insurance for the total sum of ₹ 5 lakhs.

Cons of investing in Canara Bank Fixed Deposits

  1. Not dynamic- Interest rates on Canara bank FD are not dynamic. So, it fails to overcome the risk of inflation. 
  2. Fixed rate- Fixed deposits offer a fixed rate on the investment. Hence, no benefit can be availed for higher returns in cases of increase in market interest rates.

Eligibility Criteria to Open a Fixed Deposit with Canara Bank

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 to Open a Canara Bank Fixed Deposit

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 form 60 and 61 should be presented.

How To Open A FD 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 the required details 

Step 4- Enter the amount of 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 the required details and submit the necessary documents. 

Step 4- Submit the form to the branch. 

Canara BankFixed Deposit - Premature Withdrawal

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 which is applicable for the tenure for which 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. 

Tax implications on Canara Bank FD

As per the Income-tax Act of India 1961(I-T Act), taxpayers can seek deductions under Section 80C if they have FDs. 

According to the current laws, a taxpayer can avail tax benefits to a maximum of ₹ 1.5 lakh a year from their gross taxable income, provided the following conditions are fulfilled- 

  • Taxpayers can invest in FD either through public or private sector bank. 
  • Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
  • Bank's Five year saving FD offers exemptions under Section 80C of I-T Act. 
  • Investors cannot get loans against these FDs. 
  • In case of joint holders, only the first holder can get tax benefits.

How to claim tax benefits

At the time of filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

TDS (Tax deducted at Source)

  • TDS (or tax-deducted-at-source) will be deducted on the interest accrued on the FDs if the interest is more than ₹ 40,000 (₹ 50,000 for Senior citizens)  in a financial year. 
  • For Resident customers, If you have submitted your PAN card details then the deduction will be at 10% per year on the interests. Without a PAN card, the bank will deduct 20% per year. 

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 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
444 Days
7 Days to 45 Days46 Days to 90 Days91 Days to 179 Days180 Days to 269 Days270 Days to less than 1 Year1 Year Only444 DaysAbove 1 Year to less than 2 Years2 Years & above to less than 3 Years3 Years & above to less than 5 Years5 Years & above to 10 Years
7.25 %
Yes
No
Maturity Amount₹1,08,819
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