The interest rate on Canara Bank fixed deposits range between 4.25% and 5.80% for the general public while for senior citizens, it ranges between 4.25% and 6.30%. The maturities for the deposits range between 7 days and 10 years.
Canara Bank FD Rates: (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||4.25%||4.25%|
|46 days to 179 days||5.00%||5.00%|
|180 days to less than 1 year||5.50%||6.00%|
|Above 1 year to less than 3 years||5.85%||6.35%|
|3 years and above to 10 years||5.80%||6.30%|
Note:The mentioned interest rates are effective 7 April 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)|
*The Canara Tax Saver FD rates tend to change at the discretion of the bank. The interest rates given here are valid as of 7 April 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.)|
|Above 1 year to less than 3 years||5.85%|
|3 years and above to less than 10 years||5.80%|
Note: The mentioned interest rates are effective 7 April 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 4.25% p.a. to 5.50% 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 Fixed Deposit 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 5.80% p.a. to 5.85% 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 5.80% 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 4.25% p.a. and 6.30% 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%.
Canara Bank NRI Fixed Deposit
Canara Bank has made it easy for NRIs to open a Fixed Deposit. Following FD options are available to NRIs:
- NRO (non-resident ordinary) FD: NRIs can open a joint Fixed Deposit account with an Indian resident. Interests offered are same as the domestic term deposit rates. FD account can be opened with Indian rupee only. Loans can availed against the deposit amount.
- NRE (non-resident external rupees) FD: This type of account can be opened jointly with a close relative residing in India. This account can be opened in Indian Rupees only and loans can be availed against the deposited amount.
- FCNR (foreign currency non-resident) FD: This type of FIxed Deposit account can be opened jointly with another NRI only and loans can be availed against the deposited amount. The account can be opened with currencies such as EURO, CAD, USD and JPY. Under Income Tax Laws, interest income is exempted from tax.
Key Information before Opening a Fixed Deposit
|Eligibility to Open a FD||
|Benefits of a Canara Bank FD||
FAQ for Canara Bank Fixed Deposit:
- Is it mandatory to have an account with Canara Bank to open an online Fixed Deposit?
Yes, it is necessary to have an account with the Bank to avail internet banking services and open a FD account.
- What are the effects of opening a Fixed Deposit account without a PAN?
There are numerous implications if a FD account is opened without a PAN like:
- TDS certificates are not issued.
- Under section 206AA, TDS will be deducted at the rate of 20% instead of 10 %.
- Can customers change the tenure of an existing fixed deposit?
Customers cannot change the tenure of an existing Fixed Deposit. However, if they wish to alter the Fixed Deposit tenure, they can close the current one and open a new FD with desired tenure.
- Is it possible to deposit extra amount in an existing Fixed Deposit?
Amount can be deposited only once while opening an account. For additional investment, customers should open a new Fixed Deposit.
- Does Canara Bank offer loan to customers holding FDs in other Bank?
No, a customer should maintain Fixed Deposit with Canara Bank to avail loan facilities.
- Is there any penalty for premature closure/part withdrawal/premature extension of deposit?
For deposit amount less than Rs. 1 Crore, a penalty of 1% is charged on premature closure that are opened or renewed on or before 4 February 2011.
However, there is no penalty for the deposit amount above Rs. 1 Crore and that are placed or renewed after 13 October 2012.