Canara Bank FD Rates 2021

The interest rate on Canara Bank fixed deposits range between 2.95% and 5.50% for the general public while for senior citizens, it ranges between 2.95% and 6.00%.

Canara Bank FD Rates

Below interest rates are for Below Rs.2 crore

Maturity Period Interest Rate for General Citizens (p.a.) Interest Rate for Senior Citizens (p.a.)
7 days to 45 days 2.95% 2.95%
46 days to 90 days 3.90% 3.90%
91 days to 179 days 4.00% 4.00%
180 days to less than 1 year 4.45% 4.95%
1 year 5.25% 5.75%
Above 1 year to less than 2 years 5.20% 5.70%
2 years and above to less than 3 years 5.40% 5.90%
3 years and above to less than 5 years 5.50% 6.00%
5 years and above to 10 years 5.50% 6.00%

Note: The mentioned interest rates are effective 27 November 2020.

For deposits above Rs.2 crore, customers will need to contact the nearest branch of Canara Bank to know the interest rates.

Canara Tax Saver Deposit Scheme Interest Rates (Below Rs.2 crore)

Tenure Interest rate for General Public (p.a) Interest rate for Senior Citizen (p.a)
5 years 5.50% 6.00%

*The Canara Tax Saver FD rates tend to change at the discretion of the bank. The interest rates given here are valid as of 27 November 2020.

Canara NRE Term Deposit Interest Rates (Below Rs.2 crore)

Listed in the table are the interest rates offered by Canara Bank on NRE fixed deposits:

Tenure Interest Rates (p.a.)
1 year 5.25%
Above 1 year to less than 3 years 5.20%
2 years and above to less than 3 years 5.40%
3 years and above to less than 5 years 5.50%
5 years and above to 10 years 5.50%

Note: The mentioned interest rates are effective 27 November 2020.

Term wise Canara Bank FD Interest Rates

Canara Bank Short-term Fixed Deposit Interest Rates (Below Rs.2 crore)

Canara Bank offers you interest in the range of 2.95% p.a. to 4.45% p.a. for opening a short-term fixed deposit. The tenure of a short-term fixed deposit is between 7 days and less than 12 months.

Canara Bank Medium-term FD Interest Rates (Below Rs.2 crore)

Any FD account that has a tenure between a year and 5 years falls under medium-term fixed deposits. The interest offered by Canara Bank on such deposits is between 5.25% p.a. to 5.50% p.a.

Canara Bank Long-term Fixed Deposit Interest Rates (Below Rs.2 crore)

For opening a long-term fixed deposit with Canara Bank, you will get a rate of return that is 5.50% p.a. Long-term fixed deposits are those which are opened for a period between 5 years and 10 years.

Canara Bank Senior Citizen Fixed Deposit Interest Rates (Below Rs.2 crore)

Senior citizens are offered additional interest of 0.50% on all FD tenures by Canara Bank. The rate of return ranges between 2.95% p.a. and 6.00% p.a.

Canara Bank Fixed Deposit Interest Rate Calculator

Canara Bank's FD interest calculator is very useful to the customers. It helps to calculate how much interest a customer can earn on a Fixed Deposit in a given tenure. The calculator also helps to find the value of the investment on maturation based on monthly, quarterly, half yearly or annual frequency when the interest gets compounded. The returns that a customer earns on a FD depends on the following factors:

  • Rate of Interest: Canara Bank offers higher rate of interest on Fixed Deposits that are for longer duration. Shorter duration FDs attract lower interest rate.
  • Deposit Amount: Interest rate sometimes depends on the deposit amount. For instance, Fixed Deposit of amount more than 1 crore attracts higher interest rate than the ones below that amount. The least amount for any fixed deposit is Rs. 1000, while there is no bar on the highest amount.
  • Tenure of Deposit: Fixed Deposit with longer tenure attracts higher interest rate. The minimum duration of deposit should be 15 days and maximum 120 months. In case, an individual makes a deposit for a shorter duration i.e. between 7 and 14 days, it should be a single deposit of Rs. 5 lakh or above. The interest rates are calculated based on the period of deposit as it changes from time to time.

Insight on Fixed Deposit Maturity of Canara Bank:

  • Automatic Renewal: If a depositor opts for automatic renewal while opening a deposit account, the deposit gets renewed automatically. On the day of maturity, the deposit gets renewed for a similar duration with an interest rate that's prevailing on that particular day. However, for deposits that come under Canara Tax Saver Scheme, Capital Gains Scheme and Non-callable term deposits automatic renewal option is not available.
  • Overdue Term Deposit: In case a depositor doesn't opt for automatic renewal option, after the maturity amount remains in the Bank. This is termed as overdue term deposit. From the day of maturity till the date of payment/re-investment, the overdue term deposit attracts interest at the prevailing Saving Bank rate.

Factors that Impact Fixed Deposit Rate

  • Inflation: With the rise in inflation, Fixed Deposit rates tend to go higher. Normally, a Bank fixes its FD rates higher than the existing inflation rate.
  • Recession: Recession reduces the interest rate on Fixed Deposit. During recession RBI releases funds in the market and offers additional liquidity. Due to rising liquidity and low credit demand, Banks reduce interest rates on FDs.
  • RBIs Policies: RBI indirectly controls Fixed Deposit interest rates. RBI's directives on Cash Reserve Ratio (CPR) and repo rate affect fixed deposit rates.
  • Economic Conditions: The economic condition of a country also greatly affects interest rates on Fixed Deposit. A sound economic condition ensures higher interest rates.

Tax Deduction on Fixed Deposit of Canara Bank

TDS (Tax Deducted at Source) is applicable on the interest paid to Canara Bank's Fixed Deposits. Customers holding PAN card as well as those who don't are liable to declare interest income and pay tax thereon. The Bank deducts TDS at 10% rate for the customers who have submitted their PAN details, whereas for those who have not, TDS is deducted at 20%.


  1. What is the FD rate of Canara Bank?

    The fixed deposit interest rates for Canara Bank ranges from 2.95% to 5.50% for regular citizens depending on the tenure of the FD chosen. Senior citizens receive an additional interest rate of 0.50% on the regular FD rates.

  2. Is Canara Bank safe for fixed deposit?

    Yes, Canara Bank is among the top banks in the country and offers a wide range of tenure options and competitive interest rates for its fixed deposits.

  3. What is the interest rate for a fixed deposit of Rs.1 lakh?

    Since the amount is below the limit of Rs.2 crore, the interest rate for the fixed deposit will be between 2.95% p.a. and 5.50% p.a. for tenures ranging from 1 week to 10 years for the general public while for senior citizens the rate of interest will range from 2.95% p.a. to 6.00% p.a.

News About Canara Bank FD Rates

  • FD interest rates increased by Canara Bank for select maturities

    With effect from 1 October 2020, the interest rates on Fixed Deposits (FDs) have been revised by Canara Bank. Canara Bank has hiked as well as slashed the interest rates on a few deposits. Following the revision, the interest rates for FDs with a tenure ranging between 7 days and 45 days is 3.00%. The interest rates for tenures of 46-90 days, 91-179 days, and 180 days to less than 1 year are 4.00%, 4.05%, and 4.50%, respectively. For FD ranging between 1 year and less than 3 years, the bank has reduced the interest rates by 10 bps. For FDs with a tenure between three years and 10 years, the interest rates have been hiked by 5 bps.

    01 October 2020

  • Canara Bank changes interest rates for fixed deposit

    Canara Bank has revised their interest rates on deposits which are less than Rs.2 crore with effect from 10 August. After the new change, for all term deposits with a maturity period 7-45 days, the bank will give an interest rate of 3%. For all FDs with a maturity period of 46-90 days, 91 days to 179 days and 180 days to less than 1 year, Canara bank will offer 4%, 4.05% and 4.50% interest rates. For all FDs which will mature within a year, you will get an interest rate of 5.4% and for deposits that mature over a year to less than three years will get an interest rate of 5.35%. For all FDs with three to ten years tenure, bank will offer 5.3%. Senior citizens can get 50 basis points (bps) more than the other customers on their deposits maturing in 180 days to 10 years.

    10 August 2020

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