Canara Bank Fixed Deposit

Canara Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on Canara Bank FDs is higher in their savings account. One can invest in Canara Bank FDs through both online and offline modes with a minimum investment of INR 1,000. This article covers Canara Bank Fixed Deposit Account Investment, its features and interest rates in detail.

Canara Bank Fixed deposit schemes.

Following are the types of Canara Bank FD schemes:

• Regular Fixed Deposit Scheme
• Tax Saver Deposit Scheme
• Kamadhenu Deposit Scheme (Reinvestment plan)
• Ashraya Deposit Scheme (Senior Citizens)

Canara Bank Regular Fixed Deposit Scheme

Regular fixed deposit schemes offered by Canara Bank enables investors to invest their savings and earn good returns with almost negligible risk.

• Tenure:
  • 15 days – 120 months
  • Seven days – 120 months (for single deposits of INR 5 lakhs or above)
• A loan of up to 90% on the deposit amount can be availed.
• The scheme allows partial withdrawals in multiples of INR 1,000.
• This fixed deposit scheme also provides auto-renewal options.
• The scheme offers an additional 0.50% interest for senior citizens.
• A joint account can be opened for up to 4 persons.

Canara Bank Tax Saver Deposit Scheme

The Canara Tax Saver deposit scheme investments (up to INR 1,50,000) qualify for deductions under Section 80C of the Income Tax Act.

• The scheme has a lock-in period of five years.
• The minimum deposit amount is INR 100 and in multiples thereafter.
• Loan and premature withdrawals are not available for this tax saving scheme.
• The scheme provides monthly or quarterly interest payments.

Canara Bank Kamadhenu Deposit Scheme (Reinvestment Plan)

Kamadhenu Deposit Scheme offers regular income and also spare money.

• The investment gets compounded quarterly. However, it is paid fully on maturity.
• The tenure of the scheme varies between 5 – 120 months.
• A loan of up to 90% on the deposit amount can be availed.
• Premature withdrawals are allowed. However, a 1% penalty is levied on deposits lower than INR 2 crore renewed or booked on or after March 12, 2019.
• Partial withdrawals in multiples of INR 1,000 are allowed.
• Investments are auto-renewed upon maturity.

Canara Bank Ashraya Deposit Scheme (Senior Citizens)

Ashraya Scheme is designed specifically for senior citizens. The scheme offers additional interest rates for depositors who are of the age of 60 years or more. It offers two options:

• Cumulative Option (interest payment on maturity)
• Non-Cumulative Option (regular interest payment)
• The tenure of the scheme varies between 15 days to 120 months.
• The minimum deposit amount is INR 1,000.
• A loan of up to 90% on the deposit amount can be availed.
• Premature withdrawals are allowed. However, a 1% penalty is levied on deposits lower than INR 2 crore renewed or booked on or after March 12, 2019.
• The scheme offers an additional 0.50% ROI for its account holders.
• Under Kamadhenu Option: Interest is payable on maturity.
• Under regular FD Option: Interest is payable on a monthly or quarterly, or half-yearly basis.

Key Features of Canara Bank Fixed Deposit Schemes

• Tenure: The tenure of a Canara Bank FD ranges from seven days to ten years. Also, one cannot change the tenure of their Canara Bank FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Canara Bank FD is INR 1,000. However, there is no limit on the maximum amount of investment except for Canara Bank tax saving FD, which is INR 1,50,000.
• Canara Bank FD rates: Canara Bank FD rates range between 2.95% and 5.5% for regular citizens and between 2.95% and 6% for senior citizens. Moreover, Canara Bank offers an additional 0.5% interest to senior citizens on their FDs for a tenure of 180 days and above. Also, Canara Bank pays interest every quarter to the investor.
• Premature withdrawal: All Canara Bank FDs can be withdrawn prematurely except for the tax-saving FD. The bank charges a penalty of 1% for early withdrawal. However, the penalty can change as per the terms and conditions of Canara Bank.
• Loan against FD: Canara Bank offers loan against their FDs. Investors can get up to 90% of the deposit amount as a loan against their Canara Bank FD investment. Also, the loan’s interest rate will be in the range of 5.5% to 7.4%. Moreover, the tenure of the loan will be similar to the tenure of the Canara Bank FD.
• Nomination facility: Canara Bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Canara Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all Canara Bank deposits. The scheme covers all Canara Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a Canara Bank FD once it has commenced. However, they can open a fresh Canara Bank FD with the new amount.

How to open a Canara Bank FD deposit account?

One can open a Canara Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a Canara Bank FD account through internet banking:

• Login to the Canara Bank NetBanking account.
• On the Term Deposit page, select the ‘New Account’ option and choose the type of deposit account.
• Provide all the required details, nominee information, payment and maturity instructions.
• Verify the details by clicking on ‘Open Deposit.’
• Click on ‘Confirm’ and authenticate the transaction. The account opening confirmation message pop-up will be displayed on the screen.

Through Mobile App

Canara Bank App

The following steps will guide in opening an FD account through Canara Bank Mobile App:

• Download the Canara Bank App and log in.
• Select the ‘New Account’ option and choose the type of deposit account.
• Provide all the required details, nominee information, payment and maturity instructions.
• Verify the details by clicking on ‘Open Deposit.’
• Click on ‘Confirm’ and authenticate the transaction. The account opening confirmation message pop-up will be displayed on the screen.

Offline Canara Bank FD Opening

To open a Canara Bank FD account offline, one has to visit the nearest Canara Bank branch. Fill the Canara Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, Canara bank will provide an FD receipt.

Documents required to open a Canara Bank FD

Following are the documents that one requires to open an FD account with Canara Bank:

• Fixed Deposit application form
• Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
• Identity Proof as per KYC norms. (PAN Card, Aadhar Card, Voter ID Card, Passport, Driving License)
• Address proof as per KYC norms. (PAN Card, Aadhar Card, Voter ID Card, Passport, Driving License)
• Senior Citizen ID Card (for senior citizens)
• 2 Photographs
• Any other documents as applicable for partnership, proprietorship, company, HUF, association or institution.

Eligibility to Open a Canara Bank FD

Following are the eligibility criteria to open a Canara Bank FD

• Any individual can open an FD (Resident and NRI)
• A maximum of four investors can open a joint FD
• A guardian can open on behalf of a minor
• HUF
• Partnership
• Company, association or any other institution

Does Canara Bank offer Recurring Deposits?

Canara Bank offers recurring deposits to its depositors. Canara Bank recurring deposits have a minimum tenure of six months. The maximum tenure of Canara Bank RDs is ten years. Depositors can open an RD account either by going to the Canara Bank branch or online using internet banking. The interest rate for regular citizens on Canara Bank RDs is in the range of 6.35% to 7%, and for senior citizens, it is in the range of 6.85% to 7.5%.

Is FD interest taxable?

Only investment in Canara Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other Canara Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from Canara Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from Canara Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Canara Bank, then the TDS rate will be 20%.

How many years will FD double?

To know in how many years Canara Bank FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years Canara Bank FD will double. For example, for a tenure of 10 years, the fd interest rates for senior citizens is 6%. An investor can double the investment amount by investing for this tenure in Canara Bank FD in 12 years (72/6).

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Frequently Asked Questions