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Canara Bank FD Interest Rates: Features, Types and Loan

Canara Bank offers fixed deposits (FD) across multiple tenures with varying interest rates. Their FD offerings are for both residents and non-residents. Canara Bank FD interest rate is higher than their savings account rate. Senior citizens enjoy a higher interest rate on Canara Bank FD. Canara Bank Fixed Deposit guarantee returns to its investors. Customers of Canara Bank an avail a loan on their FD up to 90% of the FD amount. One can open a Canara Bank FD at the nearest branch of Canara Bank. Alternatively, they can also invest in an FD online at Canara Bank website.

canara bank fd rates

Canara Bank Fixed Deposit FD Interest Rate 2020

The below table shows Canara Bank fixed deposit interest rates for different tenures for regular and senior citizens.

TenureFD Interest RatesSenior Citizen FD Interest Rates
7 days to 14 days3.00%3.00%
15 days to 30 days3.00%3.00%
31 days to 45 days3.00%3.00%
46 days to 60 days4.00%4.00%
61 days to 90 days4.00%4.00%
91 days to 120 days4.05%4.05%
121 days to 179 days4.05%4.05%
180 days to 269 days4.50%5.00%
270 days to 364 days4.50%5.00%
1 year5.50%6.00%
1 year 1 day to 1 year 364 days5.35%5.85%
2 years to 2 years 364 days5.35%5.85%
3 years to 10 years5.30%5.80%

Note: Canara Bank revises Fixed Deposits (FD) interest rates periodically

The choice of interest payment is given to the investor. The investor can either choose to get paid at regular intervals or at the time of maturity. Also, only investment in tax saving FDs qualify for tax savings under Section 80C of the Income Tax Act. The interest on FD is taxable as per the income tax slab rate. Furthermore, if the interest income is above INR 40,000 per annum, then a TDS of 10% is deducted. If the customer doesn’t provide PAN details, then the TDS of 20% is applicable on the interest income exceeding INR 40,000. For senior citizens, the TDS limit is INR 50,000. The interest rates of FDs are based on the term of the investment. Hence FD is also known as a term deposit.

Key Features of Canara Bank Fixed Deposit

  • Assured Returns: Canara Bank FD offers a guaranteed return on investment
  • Tenure: The FD tenure is between 7 days to 10 years
  • Minimum Amount: The minimum amount to open an FD with Canara Bank is INR 1,000.
  • Maximum Amount: There is no maximum limit
  • Special Interest Rates: Canara bank offers special interest rates for deposits maturing in 111, 222, 333, 444 and 555 days.
  • Depositors can choose to receive interest on maturity or periodically (e.g., monthly/quarterly/half-yearly/yearly)
  • Loan against Fixed Deposit: Depositors can avail loan up to 90% on their Canara Bank FDs. This is to help the depositors to meet their financial requirements without having to break the FD.
  • Safety: The Deposit Insurance Scheme covers Canara Bank deposits. DICGC insures deposits up to INR 5,00,000.
  • NRO, NRE and FCNR deposit facility is available
  • Nomination Facility: Available
  • Auto Renewal: The bank provides auto renewal facility of the FD account.
  • Special Deposit schemes offer seniors citizens preferential Canara Bank fixed deposit rates.
  • Convenience: Canara Bank FD scheme can be opened either online or by visiting the nearest branch.

Types of Fixed Deposit Schemes offered by Canara Bank

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

Types of Fixed Deposit Schemes: In Detail

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
    • 7 days – 120 months (for single deposits of INR 5 lakhs or above)
  • Loan 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.
  • Joint account can be opened for up to 4 persons.

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.

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.
  • Loan 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.

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 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.
  • Loan 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.

FD account opening process

Canara Bank FD can be opened online or offline. For both online and offline, the documents required to open an FD account are:

  • 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.

Using the above documents, one can open an FD online at Canara Bank‘s website or offline at any Canara Bank branch. If a person already has a savings account at Canara Bank, then the above documents are not required. Then they can directly invest in an FD without submitting any documents.

To be eligible to open an FD with Canara Bank, an investor has to be eligible. The criteria for the same is:

  • Any individual can open an FD (Resident and NRI)
  • A joint FD can be opened but with not more than four investors.
  • A guardian can open on behalf of a minor
  • HUF
  • Partnership
  • Company, association or any other institution

Canara Bank Loan against FD account

Canara Bank offers loans against FD up to 90% against the deposit amount. The interest rate on loan is 5.5%-7.4%.  Canara Bank will give a loan against Canara Bank FD only. The tenure of the loan is limited to the tenure of the FD. One cannot get a loan on tax saving FDs.

Loans such as loan against property (home loan), business loan, an education loan, etc., can be taken against an FD. The loan interest rate varies based on the bank and type of loan. One can always calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a home loan calculator, personal loan EMI calculator and car loan calculator. The investor can also use this EMI calculator in multiple scenarios by changing the car loan interest rate, personal loan interest rate, and home loan interest rate. 

Premature withdrawal

Premature withdrawal of FDs is not suggested. However, one can opt for a premature withdrawal at a penalty of 1%. The investor will then earn 1% less on his/her FD investment. No premature withdrawal penalty will be levied if the investment is withdrawn within seven days of investment.

What is the tenure range for Canara Bank Fixed Deposit?

The tenure range for Canara bank FD is seven days to 10 years. The tenure breakdown is given below:

Tenure
7 days to 14 days
15 days to 30 days
31 days to 45 days
46 days to 60 days
61 days to 90 days
91 days to 120 days
121 days to 179 days
180 days to 269 days
270 days to 364 days
1 year
1 year 1 day to 1 year 364 days
2 years to 2 years 364 days
3 years to 10 years

Who is eligible for opening an FD account in Canara Bank?

The eligibility criteria for opening a Canara Bank FD is

  • Any individual can open an FD (Resident and NRI)
  • A joint FD can be opened but with not more than four investors.
  • A guardian can open on behalf of a minor
  • HUF
  • Partnership
  • Company, association or any other institution

What are the documents required to open a Fixed Deposit account in Canara Bank?

Canara Bank FD can be opened online or offline. For both online and offline, the documents required to open an FD account are:

  • 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, Voter ID Card, Passport, Driving License)
  • Address proof as per KYC norms. (PAN 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.

What is the current interest rate on FD in Canara Bank?

The current Canara Bank fixed deposits rates for regular citizens are:

  • For a tenure of 7-45 days, it is 3%
  • A tenure of 46-90 days it is 4%
  • For 91-179 days of tenure, it is 4.05%
  • The FD rate for 180-364 days is 4.5%
  • For 1 year it is 5.5%
  • For 1 year one day to 2 years 364 days it is 5.35%
  • Any FD with a tenure of 3-10 years id 5.30%

Canara Bank fixed deposits rates for senior citizens:

  • For a tenure of 7-45 days, it is 3%
  • A tenure of 46-90 days it is 4%
  • For 91-179 days of tenure, it is 4.05%
  • The Fixed Deposits rate for 180-364 days is 5%
  • For 1 year it is 6%
  • For 1 year one day to 2 years 364 days it is 5.85%
  • Any FD with a tenure of 3-10 years id 5.80%

The interest rates of FDs are based on the term of the investment. Hence FD is also known as a term deposit.

To calculate the wealth gained from an FD investment, one can use a fixed deposit calculator. Scripbox’s fixed deposit calculator is available online and is free to use. Alternatively, one can use the Canara Bank FD Calculator.

Does Canara Bank offer Recurring Deposits?

Yes, Canara Bank offers recurring deposits for its depositors. The recurring deposits have a minimum tenure of 180 days. The maximum tenure of the recurring deposit is ten years. Depositors can open an RD account either by going to the bank branch or online using net banking. Below are the Canara Bank RD interest rates for different tenures.

TenureGeneral RatesSenior Citizen Rates
180 days to 269 days6.35%6.85%
270 days to 364 days6.40%6.90%
1 year 1 day to 1 year 364 days7.00%7.50%
2 years to 2 years 364 days6.70%7.20%
3 years to 4 years 364 days6.20%6.70%
5 years to 7 years 364 days6.20%6.70%
8 years to 10 years6.20%6.70%
1 year6.70%7.20%

Note: Canara Bank revises RD interest rates periodically

Can I open an FD account without holding a bank account with Canara Bank?

Yes, one can open an FD in Canara Bank without having a bank account. The individual has to submit the following documents for the same.

  • 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, Voter ID Card, Passport, Driving License)
  • Address proof as per KYC norms. (PAN 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.

Is PAN mandatory to open a Canara FD account?

A PAN card isn’t mandatory to open a Canara FD account. However, there are a few implications for the same.

  • Under section 206AA, TDS is applicable at the rate of 20% instead of the regular 10%
  • The bank will not issue any TDS certificate.
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.

Can I take a loan against a fixed deposit?

Canara Bank offers loan against FD up to 90% against the deposit amount. The interest rate on loan is 5.5%-7.4%.  Canara Bank will give a bank loan against Canara Bank FD only. The tenure of the bank loan is limited to the tenure of the FD. One cannot get a loan on tax saving FDs.

Loans such as loan against property (home loan), business loan, an education loan, etc., can be taken against an FD. The loan interest rate varies based on the bank and type of loan. One can always calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a home loan calculator, personal loan EMI calculator and car loan calculator. The investor can also use this EMI calculator in multiple scenarios by changing the car loan interest rate, personal loan interest rate, and home loan interest rate.  

What are the tax implications of fixed deposits?

5-year tax saving FDs and FCNR FDs (NRI FD) are the only two FDs whose investment qualifies for tax exemption. However, all the FDs are subject to TDS of 10%. TDS is applicable only if the interest income is above INR 40,000 and (INR 50,000 for senior citizens).  To know the interest earned is above or below the TDS threshold limit, one can use multiple bank FD calculators available online.

One can use the Income Tax Calculator to calculate their tax liability. Scripbox’s Income Tax Calculator is online and free to use.

Published on July 28, 2020