Fixed Deposits are one of the most popular modes of investment among the masses. FD schemes offered by Canara Bank provide attractive interest rates as well as returns.
Types of Canara Bank Term Deposit schemes
Features of Canara Bank FD Scheme
- Joint accounts allowed
- Automatic renewal of the deposit
- Maturity period range: 15 days to 10 years
- Canara Bank FD rates for the general public for deposits less than Rs.2 crore: 2.95% p.a. to 5.50% p.a.
- Fixed Deposit rates for senior citizens for deposits less than Rs.2 crore: 2.95% p.a. to 6.00% p.a.
- Loans can be secured for up to 90% of the FD value.
- Partial withdrawals allowed in multiples of Rs.1,000
- Overdue deposits will be treated with rates similar to Savings Account
- Interest income subject to taxation according to Tax Deducted at Source (TDS) of the Income Tax Act, 1961.
Features of Canara Bank Kamadhenu Deposit (Re-investment)
- Lower limit of deposit: Rs.1,000
- Time Period: 5 months to 10 years
- FD interest rates: Effective annualised rate of return based on quarterly compounding of interest for deposits less than Rs.2 crore ranges from 2.98% p.a. to 5.61% p.a.
- Interest payment: On maturity date
- Depositor can avail the nomination facility
- One can make partial withdrawals in multiples of Rs.1,000
- Senior citizens get special rates which is 0.50% more than standard FD rates
- One can apply for loans against the deposit for up to 90% of the deposit amount
- The interest rates of overdue deposits are same as interest rates for Savings Account
Features of Canara Tax Saver scheme
- Tenure of FD: 5 years
- Tax Saver FD rate: 5.35% p.a. for general citizens
- Interest payout: Monthly/Quarterly
- TDS is applied to the interest income
- Minimum amount of investment: Rs.100
- No loans can be availed against the Tax Saver FD
- One cannot prematurely close or withdraw funds from the FD
- Nomination facility is available but not for an account maintained by a minor
- Tax benefits up to Rs.1.50 lakh available as per Section 80C of the Income Tax Act, 1961
Features of Canara Bank Ashraya Deposit scheme
- TDS is applied to the interest income
- This scheme is exclusive for individuals of 60 years and above i.e. senior citizens
- Account holders can apply for loans against the deposit for up to 90% of the FD amount
- As per the scheme, senior citizens are eligible for a 0.50% higher interest rate on all domestic Fixed Deposits
- Tenure range:
- Fixed Deposit: 7 days to 10 years
- Kamadhenu Deposit: 5 months to 10 years
- Frequency of interest payment:
- Fixed Deposit: Half-yearly/Quarterly/Monthly
- Kamadhenu Deposit: Upon Maturity
Penalty for premature withdrawal of Canara Bank FD
- 1% penal interest is applicable for deposits below Rs.1 crore.
- Penalty will be waived for deposits of Rs.1 crore and above.
- In case the depositor withdraws an FD after 7 days of opening the account, they will not receive an interest income.
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||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%|
|Above 1 year to less than 3 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.
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.
Eligibility criteria to open a Canara Bank FD account
- Indian citizen
- Karta of Hindu Undivided Family (HUF)
- Collective unit
- Limited Companies
- Partnership Companies
- Government body
- Society associations
Documents required to open a Canara Bank Fixed Deposit account
- Form 60/61 (in absence of PAN)
- Canara Bank FD application form
- Permanent Account Number (PAN)
- 2 recent color passport-size photographs
- Government-approved identity proof and residential proof
- Additional documents for Senior Citizens
- Papers related to LIC Policy
- Voter ID Card
- Pension Card
- Birth Certificate
- SSC Certificate
FAQs on Canara Bank FD Deposit Schemes
How can I get fixed deposit in Canara Bank?
You can either walk into the branch of the bank that is nearest to you or open an FD account online.
What is the minimum amount needed to maintain an FD account?
The minimum deposit amount required is Rs.1,000.
What is the fixed deposit interest rate in Canara Bank?
The fixed deposit interest rates in Canara Bank ranges from 2.95% p.a. to 5.50% p.a. for the general public and 2.95% p.a. to 6.00% p.a. for senior citizens.
What is the maximum interest rate that one can get on Canara Bank FD?
You can get an interest rate of 5.50% p.a. for a tenure ranging from 3 years to 10 years for a general individual and an interest rate of 6.00% p.a. for the same tenure for senior citizens.
What is the interest for Rs.1 lakh in Canara Bank?
If you open an FD for Rs.1 lakh in Canara Bank for a tenure of 5 years, the interest rate currently is 5.50% p.a., which will get you an interest amount of Rs.30,000 in 5 years.
Is the interest on Canara Tax Saver FD free from taxation?
No, TDS is applicable on Canara Tax Saver Fixed Deposit.
What is tenure range for Kamadhenu Deposit scheme?
The maturity period for Kamadhenu Deposits range between 15 months and 10 years.
Can I apply for a loan against all Canara Bank Fixed Deposit schemes?
No, one cannot secure a loan against Canara Tax Saver Term Deposit scheme.
Is Canara Bank safe for fixed deposit?
Yes, Canara Bank is safe for fixed deposits. The principal and interest amount of fixed deposits are insured for up to Rs.1 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) as mandated by the Reserve Bank of India.