Canara Bank is a government-owned bank with pan-India operations. It was established in 1906 in Mangalore, Karnataka, and is headquartered in Bangalore, Karnataka. Canara Bank has a wide presence with more than 5600 branches and close to 8000 ATMs covering around 4000 centres. It is one of the most successful public-sector banks, and holds the distinction of showing profits every year since its inception.
Fixed Deposit schemes from Canara Bank are a great way to channel savings so as to earn high returns with the advantage of capital protection. Canara Bank FDs are safe fixed income options which offer flexible tenures and interest payout options which lets depositors balance liquidity and returns.
Individuals, singly and jointly (less than 5), Hindu Unified Families (HUF), companies, guardians on behalf of minors, and other associations and institutions can opt for the different Canara Bank fixed deposit schemes. The following documents have to be produced at the time of opening a Canara Bank fixed deposit account:
1.00% penalty is applicable in case of pre-closures of FD accounts of less than ₹ 1 crore. This penalty is not levied on FD values above ₹ 1 crore. Interests will not be paid in case the fixed deposit account has been closed within a week of its inception.
To open a Canara Bank FD account, you have to be eligible for the products according to the eligibility criteria as explained above. All the relevant documents have to be submitted as mentioned earlier, so that the bank can proceed with registration of your FD account. Online registration is currently not available for fixed deposits, though you can use services such as BankBazaar.com to find and compare fixed deposit products, and apply to/get quotes for your choices.
For deposits up to ₹ 1 crore (per annum) interest rates vary from 4% p.a. to 9% p.a. for deposits held for periods between 7 days to 1 year. For deposits above ₹ 1 crore (per annum), rates range from 6.25% p.a. to 8.75% for deposits held between 1 year ot 10 years. Apart from these rates, Canara Bank offers 9.00% p.a. interest rate for tenures of 500/1000 days and 8.75% p.a. interest on tenure of 1200 days. For deposits of tenures of 444 days and 555 days, the bank offers 9.10% p.a. under the Canara Shikhar Deposit Scheme.
TDS is applicable on interests paid on all Canara Bank fixed deposit schemes. There are two categories of customers who have to pay TDS on fixed deposit accounts – People with PAN card and people without PAN card. Those customers who have submitted their PAN details are to pay 10% TDS on accumulated interests of more than ₹ 10,000. Customers who haven’t submitted their PAN details to the bank have to pay 20% TDS on accumulated interests above ₹ 10,000.
Loans are available against up to 90% of the overall amount in the fixed deposit.
Senior citizens are provided an additional 0.50% interest on all applicable deposit rates on the various fixed deposit products from Canara Bank. The Ashraya Scheme as described in above sections is primarily meant for senior citizens of India.
For domestic/NRO deposits, premature withdrawal is allowed at no penal interest for deposits above Rs.1 crore. For deposits below Rs.1 cr, 1% penal rate of interest is applicable. No interest will be payable if the account is withdrawn within 7 days.
For NRE deposits, premature withdrawal before 1 year will not receive any accrued interests from the period. Withdrawals after 1 year will attract a penal rate of 1%.
Yes, NRIs can open fixed deposits with Canara Bank. The deposits are available under NRO (non-resident ordinary), NRE (non-resident external rupees) and FCNR (foreign currency non-resident) accounts.