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Canara Bank offers Tax Saver FD Scheme at an interest rate of 6.50% p.a. for regular citizens and 7.00% p.a. for senior citizens for 5 years tenure. Depositors can claim tax deductions of up to Rs 1.5 lakh from taxable income through Canara Bank tax saver FD under Section 80C of the Income Tax Act, in a financial year. Canara Bank offers this tax saving fixed deposit under the Fixed Deposit & Kamadhenu Deposit (FD Re-investment plan) streams.
Canara Bank Tax Saving FD Highlights
| Deposit Amount | Rs 100 to Rs 1.5 lakh in a financial year |
| Tenure | 5 years |
| Interest Payable Options | Quarterly, Monthly, At Maturity (Re-investment/Quarterly Compounding) |
| Premature Withdrawal | Not allowed |
| Loan Against FD Facility | Not available |
| Auto Renewal Facility | Not available |
| Nomination Facility | Available |
Book FDs at Interest rate upto 8.00% p.a
Manage all FDs in one place
No Bank A/C Required
Canara Bank Tax Saving FD
| Tenure | Interest Rates (% p.a.) |
| 5 years | 6.50 |
Last updated on 15 December 2025
Comparison of Top 20 Scheduled Banks based on FD Rates
Banks | Highest FD rate (% p.a.) | 1-year FD rate (% p.a.) | 3-year FD rate (% p.a.) | 5-year FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
| Suryoday Small Finance Bank | 8.00 | 7.25 | 7.25 | 8.00 | 0.20 |
| Jana Small Finance Bank | 8.00 | 7.00 | 7.50 | 8.00 | 0.50 |
| ESAF Small Finance Bank | 7.60 | 4.75 | 6.00 | 5.75 | 0.50 |
| Utkarsh Small Finance Bank | 7.50 | 6.00 | 7.50 | 7.00 | 0.50 |
| Ujjivan Small Finance Bank | 7.45 | 7.25 | 7.20 | 7.20 | 0.50 |
| Equitas Small Finance Bank | 7.30 | 7.00 | 7.00 | 7.00 | 0.50 |
| Shivalik Small Finance Bank | 7.30 | 6.00 | 7.00 | 6.50 | 0.50 |
| Bandhan Bank | 7.20 | 7.00 | 7.00 | 5.85 | 0.50-0.75 |
| DCB Bank | 7.15 | 6.90 | 7.00 | 7.00 | 0.25-0.50 |
| RBL Bank | 7.20 | 7.00 | 7.20 | 6.70 | 0.50 |
| Capital Small Finance Bank | 7.15 | 7.00 | 7.00 | 6.90 | 0.50 |
| SBM Bank | 7.10 | 7.00 | 7.10 | 7.00 | 0.50 |
| AU Small Finance Bank | 7.10 | 6.35 | 7.10 | 6.75 | 0.50 |
| Central Bank of India | 6.75 | 6.40 | 6.25 | 6.25 | 0.50 |
| YES Bank | 7.00 | 6.65 | 7.00 | 6.75 | 0.50-0.75 |
| Induslnd Bank | 7.00 | 6.75 | 6.90 | 6.65 | 0.50 |
| Unity Small Finance Bank | 6.75 | 6.50 | 6.75 | 6.75 | 0.50 |
| Federal Bank | 6.75 | 6.25 | 6.75 | 6.50 | 0.50 |
| Bank of India | 6.70 | 6.25 | 6.25 | 6.00 | 0.50 |
Features of Canara Tax Saving FD
- Deposit amount – Minimum: Rs. 100; Maximum – Rs. 1.5 lakhs in a financial year
- As with any other tax saver fixed deposit schemes, Canara Tax Saver FD comes with a lock in period of 5 years, i.e., premature withdraw of deposits are not allowed.
- Quarterly and monthly interest pay-out options are available on fixed deposits. The scheme also offers reinvestment of investment scheme (Kamadhenu Deposit) wherein the FD interest component is reinvested to the principal amount.
- Senior citizen FD depositors are offered additional interest rates of 0.50% p.a., over and above the regular FD interest rates.
- Joint deposits can be opened by an adult and a minor or by two adults only. The tax benefit is only available to first holder of the fixed deposit
Canara Tax Saving FD Eligibility Criteria
- Resident Individuals, or
- Hindu Undivided Family
How To Open Canara Tax Saving FD
The existing customers of Canara Bank can open tax saver FD either through internet banking or mobile banking or by visiting Canara Bank branch. New customers can open FD account by opening a savings account primarily.
Canara Bank Tax Saving FD Calculation
You can use online FD Calculator to know the maturity amount and fixed deposit interest income. You just need to enter the principal amount, tenure and applicable Canara Bank FD interest rates
Tax Deduction on Canara Tax Saver FDs
According to Section 80C of the Income Tax Act, only the principal amount of the deposit qualifies for tax deduction of up to Rs 1.5 lakhs. The interest income from FD is taxable as per the tax slab of the depositor under head “Income from other sources” in the IT return.
According to the Section 80TTB of the Income Tax Act, senior citizens (aged 60 years and above) can claim income tax deduction of up to Rs 50,000 on the fixed deposit interest income of deposits (including FD). Here, the word ‘deposits’ refers to the deposit accounts opened with post office, banks and cooperative societies engaged in the business of banking.
TDS on Canara Tax Saver Fixed Deposits
TDS is deducted on FDs when the interest income exceeds Rs. 40,000 (Rs. 50,000 for senior citizens). TDS @ 10% is deducted on the FD interest amount in a financial year. However, if PAN details are not provided to the bank, TDS @ 20% will be levied on the interest income.
Documents Required For Opening Tax Saving FD
To open tax saver fixed deposit, individuals need to submit the following documents:
- Copy of PAN Card
- Proof of Identity & address proof as per KYC Norms
- Photograph of depositor/s (2 copies)
- Any other documents as applicable to Karta of a HUF.