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Canara Bank FD Interest Rates

Canara Bank FD Rates 2020

Last Updated 21st Sep 2020

Canara Bank is one of most reliable FD providers amongst a number of FD providers in the market. Canara Bank FD offers a number of benefits to investors such as higher returns, flexible tenure, lower minimum deposit limit, and loan against FD facility, among others. When it comes to the FD interest rate, the highest rate offered on Canara Bank FD is 5.50%. Latest Canara Bank FD interest rate for senior citizens, on the other hand ranges between 3.00% to 6.00%.

Tenure FD interest rates Senior Citizen FD interest rates
7 days to 14 days 3.00% 3.00%
15 days to 30 days 3.00% 3.00%
31 days to 45 days 3.00% 3.00%
46 days to 60 days 4.00% 4.00%
61 days to 90 days 4.00% 4.00%

Canara Bank Fixed Deposit (FD)

Canara Bank FDs are one the best investment option available for depositors who are looking to invest in a fixed income instrument and earn higher returns than savings account. Key Features of Canara Bank Fixed Deposit are:

  • Deposit Amount: Canara Bank FD can be opened with an amount as a low ₹ 1,000 to up to No Limit.
  • FD Tenure: Ranges between 7 days to 1 year.
  • Interest Rate Range: 3.00% p.a. to 5.50% p.a.
  • Senior Citizens FD Rate: 3.00% to 6.00% p.a.
  • Highest Interest Rate: As per today’s rate, Canara Bank’s highest interest rate on FD is 5.50% offered for a tenure of 1 year.
  • Safety of Canara Bank Deposits: Canara Bank deposits are covered under the Deposit Insurance Scheme of RBI in which up to ₹ 5 lakh of all deposits of a depositor are insured by DICGC.
  • Loan against FD: Canara Bank provides loan against FD to help its depositor meet their liquidity requirements without breaking the FD.
  • Auto Renewal Facility: Available
  • Nomination Facility: Available
  • Popular FD Schemes: Regular Fixed Deposit

Canara Bank Best FD Plan

We need to compare tenure wise latest FD rate of Canara Bank to choose the tenure at which it provides the highest interest rate. Canara Bank FD rates are best for the deposits with a tenure of 1 year to 1 year, wherein the current FD rate of interest is 5.50% p.a

If one is looking to invest in short term deposits with Canara Bank, FD interest rates range from 3.00% p.a. to 4.50% 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 3.00% to 5.00% p.a.

If one is looking to invest in long term deposits, Canara Bank FD interest rates with tenure of 5 years to 10 years are a good choice with interest rates on deposits with a tenure of 10 years at 5.30%. Senior citizens are offered special rates from bank with highest deposit rates of 5.80% p.a. on long term FDs.

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:

  • Interest on deposit is paid only at the time of the maturity
  • Nomination facility available
  • Extra interest of 0.25% to 0.50% payable to the senior citizens
  • Availability of auto renewal facility on the deposit
  • Earn higher returns on the money deposited

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

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 4% to 6.5%

Illustration - Mr. Rahul has opened a fixed deposit of ₹ 1,00,000 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 ₹ 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 ₹ 90,000 availed for 1 month only. The amount he repays after 1 month is ₹ 90,744. So, the interest charged on the loan taken is ₹ 744.

FD Account Opening Process at Canara Bank

To open a Fixed Deposit account in Canara Bank, you can visit the official website and login to your account. Choose Fixed Deposit option from the menu and select the Type of FD you want to open and proceed. After this, you have to fill the deposit amount and select ‘Senior Citizen’ option if you are above 60. You have to choose the tenure of deposit and interest payout frequency. Click on Submit to open the Canara Bank FD after reading the terms and conditions.

Nomination Facility on Canara Bank FD

Canara Bank offers nomination facility on Fixed Deposit to claim the amount in case of the death of the depositor. An individual, single or joint account holders can appoint a nominee. Only one person can be appointed as nominee. You can fill nominee details while opening a Canara Bank fixed deposit. Nominee has to submit his/her identification proof at the time of claim.

Canara Bank Fixed Deposit Scheme

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

FAQs

What is the highest FD rate for Canara Bank?

You can earn a maximum interest of 5.50% 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 3.00% to 5.50%. Compared to this, the rate of senior citizens FD are in the range of 3.00% to 6.00%.

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 ₹ 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

What is the current interest rate on FD in Canara Bank?

Current interest for FD in Canara Bank ranges between 3.00% - 5.50%.

Can a customer open a FD account online in Canara Bank?

Yes, you can submit your application for opening a FD account on the website of Canara Bank. After submitting the application, you will be contacted by the bank’s representative for further process which includes filling an application process and submitting KYC documents.

In how many years FD will double in Canara Bank?

The interest rate on FD depends upon the tenure you choose. To know the time period in which your FD amount will get doubled, you need to divide 72 with the 5.50%. For Canara Bank FD the number of years in which your FD will get doubled is; 72/5.50 = 13


Canara Bank News - Sep 2020
  • 2020-01-21 : Canara Bank revised its FD rates
    With effect from 17 January 2020, Canara Bank revised the fixed deposits rate. Fd rate for 7 to 45 days is 4.50%, for 46 to 90 days it is 5%, and 91 to 179 days it is 5.50%. Further, the fixed deposit rate for short tenors of 180 to 365 days it is 5.90%. FD rates for the long tenor of one year stands at 6.30%. In addition to this, fixed deposit rates for one year to 3 years is 6% and three years to 10 years it is 6.25%.
  • 2019-09-05 : Revised FD rates for Canara Bank
    Canara Bank has revised its FD rates on deposits less than Rs 2 crores. For a tenure of 7-45 days, the revised rate is 5 percent; for 46-269 days it is 6 percent; for 270 -364 days it is 6.20 percent. For one year it is 6.50 percent, and for 1-3 years it is 6 percent. The rate of interest on the tenure of 3-10 years is charged between 6.25 percent. Senior citizens are provided with additional 50 basis points.
  • 2019-08-14 : Canara Bank revises interest rate on FD for select maturities
    Canara Bank has revised interest rates on deposits less than Rs. 2 crores. For term deposits with maturity period 7-45 days, Canara Bank has slashed the interest rate from 5.75% to 5%. For FDs with maturity period 46-269 days, the bank has kept the rate unchanged at 6%. Term deposits maturing in 270 days to less than 1 year will also fetch the same interest rate as earlier, i.e., 6.20%. The bank had earlier revised its interest rates on 4 July. The new rates are effective from 9 August 2019.
  • 2019-06-20 : Canara Bank to raise up to Rs. 12,000 crore in FY20
    In a bid to augment its business growth, Canara Bank is aiming to raise capital of up to Rs. 12,000 through a mix of equity and bonds during the current fiscal. The bank has approved the raising capital of up to Rs. 6,000 through the Qualified Institutional Placements (QIP) and the remaining funds through the issue of Basel-III compliant boonds. Inn addition, the lender is also aiming to achieve a significant growth across its loans and deposits including fixed deposits.
  • 2018-08-06 : Canara Bank revises FD rates
    Canara Bank has increased its interest rate on retail fixed deposits or FDs below Rs. 1 crore, for all maturity period. The Interest rate on Canara Bank FD with a maturity of One year is increased to 6.70%, which was 6.50% earlier. Five years to ten years will fetch an interest rate of 6.20%, which was 6.00% earlier. The new rates are effective from August 4, 2018.
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