Canara Bank offers diverse range of fixed deposit schemes for its domestic customers as well as NRIs. These deposit schemes are backed by high-yielding Canara Bank FD rates that allow customers to earn guaranteed returns. Here we shall discuss the various aspects circling fixed deposits by Canara Bank along with the latest Canara Bank FD rates corresponding to the schemes.
Canara Bank Fixed Deposit Rates 2021
- FD Rates for Domestic Deposits below Rs. 2 crore
|FD Tenure||Canara Bank FD Interest Rates (% p.a.)|
|Regular Citizens||Senior Citizens|
|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 2 years||5.20||5.70|
|2 years & above to less than 3 years||5.40||5.90|
|3 years & above to less than 5 years||5.50||6.00|
|5 years & above to 10 years||5.50||6.00|
*Rates applicable only for a single deposit of Rs.5 lakhs & above w.e.f. 8th February 2021.
Please contact the branch for deposits of and above Rs. 2 crores.
Additional interest of 0.50% for Senior Citizens is to be made available for Deposits (Other than NRO/NRE and CGA Deposits) less than Rs. 2 Cr and with a tenor of 180 Days and above
- FD Interest Rates for Tax Saving Deposits
|Tenure||Regular Citizens||Senior Citizens|
|5 years & above to 10 years||5.50%||6.00%|
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Canara Bank NRI FD Rates 2021
Canara Bank NRE FD Rates
NRE or Non-Resident External Fixed Deposit Account is designed for NRI customers of the bank. They can place their foreign savings in this account and earn assured returns on the same as per the prevailing Canara Bank NRE FD rates. Interest earned is not taxable in India while it is fully repatriable along with the deposit amount. The account is maintained in Indian Rupees post-conversion as per the prevailing forex rates.
|Tenure||Fixed Deposit of less than Rs 2 crore|
|Above 1 year to less than 2 years||5.20%|
|2 years & above to less than 3 years||5.40%|
|3 years & above to less than 5 years||5.50%|
|5 years & above to 10 years||5.50%|
Note: The aforementioned NRE fixed deposit rates are applicable from 8th February 2021. and are subject to change any time with no prior notice.
Canara Bank NRO FD Rates
|Canara Bank FD Interest Rates (% p.a.)|
|7 days to 14 days*||2.95|
|46 days to 90 days||3.90|
|91 days to 179 days||4.00|
|180 days to less than 1 year||4.45|
|Above 1 year to less than 2 years||5.20|
|2 years & above to less than 3 years||5.40|
|3 years & above to less than 5 years||5.50|
|5 years & above to 10 years||5.50|
Note: The aforementioned NRO fixed deposit rates are applicable from 8th February 2021 and are subject to change at any time with no prior notice. No additional interest rates for senior citizens.
Canara Bank FCNR FD Rates
FCNR or Foreign Currency Non-Resident Fixed Deposit Account is an investment facility available to NRIs. Here the account is maintained in the original currency in which the deposit was made, i.e. no forex risk is involved. Interest earned is fully repatriable and is not taxable in India.
Interest rates on FCNR (B) Deposits w.e.f. 07.07.2021 (Interest rate % per annum)
|CURRENCY OF DEPOSIT||1 year and above but less than 2 years||2 years and above but less than 3 years||3 years and above but less than 4 years||4 years and above but less than 5 years|
Five years only
Note: – The above interest rates are applicable only for FCNR deposits of amounts less than USD 1 Million (or its equivalent in other currencies). For FCNR deposit of USD 1 Million & above (or its equivalent in other currencies) please contact the branch.
Canara Bank RFC FD Rates
Canara Bank RFC or Resident Foreign Currency Fixed Deposit Account is for Returning Indians who are no longer NRIs and wish to park their foreign savings in fixed deposit with the bank. The interest earned is taxable in India while it can be repatriated post-payment of due taxes. The account is maintained in INR (deposit amount is converted in INR).
PERIOD OF DEPOSIT
|1 month & above but less than 3 months|
|3 months & above but less than 6 months|
|6 months & above but less than 1 year|
|1 year & above but less than 2 years|
|2 years & above but less than 3 years|
|3 years only|
Note: – The above interest rates are applicable only for RFC deposits of an amount less than USD 1 Million (or its equivalent in other currencies). For RFC deposit of USD 1 Million & above (or its equivalent in other currencies) please contact the branch.
Read more: Types of Canara Bank NRI FD Schemes
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Features & Benefits of Canara Bank FD Schemes
Canara Bank extends the following benefits to its fixed deposit customers in the form of features:
- Flexible tenure options ranging from 7 days to 10 years
- Option to receive interest on maturity or periodically (every month/quarter/half-yearly/yearly)
- A loan or overdraft facility is available for up to 90% of the deposit amount
- A premature withdrawal facility is available which attracts a penalty of up to 1% applicable to deposits less than Rs. 1 crore
- Option to claim up to Rs. 1.5 lakh of deductions while filing ITR with the help of Canara Bank Tax Saver FD scheme (u/s 80C of IT Act, 1961)
- A special deposit scheme is offered to senior citizens with interest payment on a monthly/quarterly/half-yearly basis and preferential Canara Bank FD rates
Types of Canara Bank FD Schemes
The bank provides as many as 4 distinct options for its domestic customers in terms of fixed deposit.
- Regular Fixed Deposit Scheme
- Kamdhenu Deposit Scheme (Re-investment plan)
- Canara Tax Saver Deposit Scheme
- Ashraya Deposit Scheme (For Senior Citizens)
Read more about Types of Canara Bank Fixed Deposit Schemes
Who Should Invest?
Bank’s Regular FD Scheme will be beneficial for anyone wishing to start investing from as low as Rs. 1,000. Senior citizens will get 0.5% extra interest on these. This can also be opened in the name of a minor to help them inculcate the habit of savings.
Canara Tax Saver Scheme can be opted by those who want to claim deductions up to Rs. 1.5 lakh u/s 80 C of the Income Tax Act. You will not be allowed to withdraw funds before 5 years from the date of booking.
For those who are not liable for income tax, i.e. those earning less than Rs. 2.5 lakh per annum, they can submit Form 15G/H. Then, you will not have to bear TDS on the interest income too.
For senior citizens, Canara Ashraya Deposit Scheme will work well as they will earn extra 0.5% of interest on deposits made.
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Canara Bank FD Calculator
Investors can check the maturity amount of the scheme by using the Canara Bank FD Calculator on Paisabazaar. Also, Canara Bank FD interest rates vary for different tenure options. So, the investors can also opt for a specific tenure option by providing the Canara Bank FD Rates, deposit amount and tenure and calculating the potential earning.
Moreover, using the Canara Bank FD calculator, account holders can check and compare Canara Bank fixed deposit rates with other banks like SBI FD rates or HDFC FD rates.
Read more about How to Use Canara Bank FD Calculator
Canara Bank Premature Withdrawal Facility
Account-holders of Canara Bank fixed deposits can withdraw before the maturity date to provide for an emergency or cash crunch or any other reason. However, this shall attract a penalty of 1% that shall be levied on the interest payable. This applies to deposits less than Rs. 2 crores booked freshly/renewed on or after 12th March 2019.
Please note that no interest shall be payable if the deposit is withdrawn before 7 days from the date of booking.
Paisabazaar Credit Card against FD – a better alternative to premature withdrawal
Instead of liquidating your fixed deposit in times of need, there is another option you can resort to – a credit card against FD. These cards are issued against FD and thus are secured. Canara Bank offers a credit limit of up to 75% of the FD amount on its secured credit card.
But if you’re looking for a higher credit limit, Paisabazaar Step Up credit card won’t disappoint you with its high credit limit (approximately 83% of FD amount).
Canara Bank Loan against FD
To provide customers with an alternative to breaking their FD, Canara Bank provides the option of taking a loan against their fixed deposit. Such a loan can be taken for up to 90% of the deposit value. For example, if you have an FD of Rs. 1 lakh, you can take a loan for up to Rs. 90,000 which is 90% of the deposit amount. This facility is NOT extended to the customers of tax saver FD.
Interest earned on fixed deposits is always subject to taxes. The bank exercises TDS before crediting the accrued interest to the deposit holder. The following must be considered to understand TDS implication on FD investment:
- TDS at 10% is charged on interest amounting to more than Rs. 40,000 for regular citizens
- The limit is extended to Rs. 50,000 for senior citizens
- On non-submission of PAN, TDS is charged at 20%
- For those who earn up to Rs. 2.5 lakh per financial year should submit Form 15G (15H for senior citizens) to avoid TDS
- NRO and RFC FD interest is charged with 30% of TDS
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Residents of India may apply for domestic fixed deposit schemes with Canara Bank. This includes individuals, Hindu Undivided Families, corporates, firms, etc.
NRE, NRO and FCNR fixed deposit schemes are open to Non-Resident Indians (NRIs) and/or Persons of Indian Origin (PIOs).
Documents Required to Apply
To open a Canara Bank fixed deposit account (domestic), the following documents may be asked from the applicant:
- Account Opening Form (filled & duly signed)
- PAN Card or Form 60/61 (for those who do not have PAN card)
- ID Proof (Aadhaar Card, PAN card, etc.)
- Residence Proof (Passport, Driving License, etc.)
- Passport-sized photographs
Note: This is an indicative list.
Frequently Asked Questions (FAQs)
Q. What is the tenure of Canara Bank Tax Saver Deposit Scheme?
A. Canara Bank Tax Saver Deposit Scheme comes with a lock-in period of 5 years.
Q. What is the highest FD rate offered by Canara Bank?
A. The highest FD rate offered by Canara Bank is 5.50% p.a. to regular individuals and 6.00% p.a. to senior citizens for the tenure of 3 years & above to less than 5 years and 5 years & above to 10 Years.
Q. Are there any preferential rates offered to senior citizens?
A. Yes, Canara Bank offers 0.50% higher FD interest rates to senior citizens across all maturities (only on domestic deposits).
Q. Is a loan facility available against the FD account at Canara Bank?
A. Yes, a loan facility is available against the FD account at Canara Bank. Account-holders can avail of up to 90% loan against their fixed deposit amount.
Q. What is the minimum amount an account holder can keep in Canara Bank fixed deposit account?
A. The minimum amount an account holder can keep in Canara Bank fixed deposit account is Rs. 1,000. This shrinks to Rs. 100 in case of a tax saver fixed deposit scheme.
Q. What is Canara Bank Customer Care Number?
A. Canara Bank’s customer Care Number is 1800 425 0018. Account-holders can give a call to the same for any assistance or queries.
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Canara Bank FD News
|Canara Bank Revises Fixed Deposit Rates|
|5th September 2019|
Canara Bank has once again revised its fixed deposit rates across various maturities for deposits that are less than 2 crores with effect from 30th August 2019. The bank continues to provide a 0.50% interest rate to senior citizens. The highest Canara Bank FD interest rate is 6.25% for regular citizens and 6.75% for senior citizens.
|Canara Bank Revises Fixed Deposit Rates|
|19th August 2019|
Canara Bank has revised its fixed deposit rates across various maturities for deposits that are less than 2 crores with effect from 9th August 2019. The bank is offering an interest rate from 5.00% to 6.50% for a period of 7 days to 10 years. Canara Bank is providing the highest interest rate of 6.50% for a period of 1 year to less than 3 years for regular citizens and 7.00% for senior citizens.