Canara Bank FD Interest Rates, Feb 2018

Canara Bank FD rates

Tenure FD Rates Senior Citizen FD Rates
7 days to 14 days 4.20% 4.70%
15 days to 30 days 4.20% 4.70%
31 days to 45 days 4.50% 5.00%
46 days to 60 days 4.75% 5.25%
61 days to 90 days 4.75% 5.25%
91 days to 120 days 5.50% 6.00%
121 days to 179 days 5.75% 6.25%
180 days to 364 days 6.35% 6.85%
1 year 6.50% 7.00%
1 year 1 day to 1 year 364 days 6.30% 6.80%
2 years to 4 years 364 days 6.20% 6.70%
5 years to 10 years 6.00% 6.50%

The above rates are applicable for deposits of below Rs. 1 crore.

Canara Bank FD Maturity Calculator
Rs.
%

Canara Bank FD Interest Rates 2018

Canara Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Canara Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Canara Bank are:

  • Facility of part withdrawal is allowed on the deposit
  • Nomination facility is available
  • Deposit shall be renewed automatically for a similar period on the date of maturity, unless asked otherwise
  • The overdue term deposit will be paid interest
  • Loan or overdraft upto 90 per cent against deposit is available

FD Rates in Canara Bank

FDs are attractive financial instruments for depositors looking for attractive returns and high safety. FD interest rates in Canara Bank range from 4.20% p.a. to 6.35% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Canara Bank FD rates for senior citizens range from 4.70% to 6.85% p.a.

Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. Canara Bank FD rates are the highest for the deposits with a tenure of 1 year to 1 year, wherein the FD rate of interest is 6.50% p.a

Canara Bank FD interest rates for long term deposits with tenure of 5 years to 10 years offer good returns. Canara Bank fixed deposit rates for deposits with a tenure of 10 years is 6.00%. Senior citizen are offered deposit rates of 6.50% p.a. for long termed FDs.

Canara Bank Fixed Deposit Rates

Canara Bank offers best FD rate of 6.50% on term deposits for a tenure of 1 year to 1 year. The bank offers special interest rate on FD for senior citizens. Current Canara Bank FD rates for senior citizens range from 4.70% to 7.00%. Fixed Deposits rates of Canara Bank are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.

The factors affecting Fixed Deposit interest rates are as follows:

Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.

Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.

Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.

Canara Bank Fixed Deposit

Regular Fixed Deposit

Description:

  • Under this scheme, the depositor is allowed to make investment into the deposit to earn attractive and higher returns along with a flexibility and security.
  • Facility of part withdrawal is allowed on the deposit
  • Nomination facility is available
  • Deposit shall be renewed automatically for a similar period on the date of maturity, unless asked otherwise
  • The overdue term deposit will be paid interest
  • Loan or overdraft upto 90 per cent against deposit is available

Who is eligible?

  • Resident Indians, private or public limited company, hindu undivided family, trust and partnership firm

Canara Bank FD Calculator

Canara Bank fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.

  • Deposit amount – This is the initial amount deposited by a customer in Canara Bank. Bank may allows higher interest rate on larger deposits. Canara Bank offers deposit amount in the range of Rs. 1,000 to No Limit.
  • Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. Canara Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by Canara Bank is 6.50% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
  • Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 4.20% for a 7 Days FD and a rate of 6.00% for a 10 Years FD.
  • Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.

Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 4.20 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,080 which includes the principal of Rs. 1 lakh and interest of Rs. 80 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.

Canara Bank calculates quarterly interest on its fixed deposits.

FD in Canara Bank – Premature Withdrawal

Premature closure of Term Deposit with Canara Bank is along with the lower interest rate of 1% for deposits less than Rs. 1 crore than the contracted rate. The penal provisions for premature closure on Canara Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Canara Bank

Canara Bank offers loan up to 90% against its own deposit. Note that Canara Bank will not give you loan against FD of any other bank. Canara Bank offers Loan against FD at the rate of 5.2% to 7.5%

Maximum loan tenure is restricted up to the maximum tenure of the FD.

Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Canara Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 90% against his FD at 10% interest rate. Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.

Documents required to open Fixed Deposit Account in Canara Bank

  • PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act
  • Identity Proof: PAN Card, Voter ID Card, Passport, Driving License
  • 2 Photographs

FAQs on Canara Bank Fixed Deposit

What is the highest FD rate for Canara Bank?

You can earn a maximum interest of 6.50% on Canara Bank fixed deposit.

Are there any special rates for senior citizens FD of Canara Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 4.20% to 6.50%. Compared to this, the rate of senior citizens FD are in the range of 4.70% to 7.00%.

What is the tenure range for Canara Bank Fixed Deposit?

The tenure ranges from 7 days to 10 years.

Is there any minimum amount that I have to give for opening a Fixed Deposit with Canara Bank ?

The minimum deposit amount required to book an FD with Canara Bank is Rs. 1,000.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

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

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

What documents are required to open an FD account in Canara Bank ?

The documents required to open an FD account in Canara Bank includes PAN Card or declaration in Form No. 60 or 61 as per the Income Tax Act, Identity Proof: PAN Card, Voter ID Card, Passport, Driving License, 2 Photographs.

Is it possible to change the tenure of my existing fixed deposit account with Canara Bank ?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Canara Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.