Canara Bank FD Rates

The acquisition of Syndicate Bank, has knighted the bank into a major player in the banking sector. The fourth largest public bank in the country already holds the title of being a significant financial conglomerate in the market. The Canara Bank boasts 10,391 branches, around 13,000 ATMs, and a balance sheet of Rs 16 trillion. Headquartered in the IT capital of India, the bank has designed an assortment of services directed at IT solutions to cater to the requirements of its customers. The bank is pioneering in the direction of technology-enabled banking and shaping the future of banking services in India. 

Classification of Canara Bank Fixed Deposit Rates

The Canara Bank fixed FD schemes are designed to cater to the diverse needs of the customers in the market. The interest rate offered on these schemes vary, but the interest rates offered by Canara Bank Fixed deposits are higher when compared to the savings accounts. The investor must make a minimum deposit of Rs 1,000 to commence their journey.

Canara Fixed Deposits Schemes are offered in the following types

• Regular Fixed Deposit Scheme 
• Tax-Saver Fixed Deposit Scheme 
• Kamadhenu Deposit Scheme (Reinvestment Plan) 
• Arshaya Deposit Scheme (Senior Citizens) 

1. Canara Bank Regular Fixed Deposit Scheme 

This scheme caters to investors who are willing to park their savings in a safe-investment instrument with ensured returns.

• The tenure on the investment can vary from 15 days to 120 months. And for seven days to 120 months on the condition that the deposit amount exceeds Rs 5 Lakhs. 
• The provision to avail of a loan against the Fixed Deposit is present. 
• Partial withdrawals are allowed in multiples of Rs 1,000 
• The investor can use the auto-renewal options. 
• Senior citizens can collect an additional interest rate of 0.50%. 
• The provision to open a joint account is also present. 

2. Canara Bank Tax Saver Deposit Scheme 

As the name suggests, the investors in this scheme are eligible for Tax Deductions under Section 80C of the Income Tax Act.

• The lock-in period of the scheme is five years. 
• The investor can partake in the scheme by depositing as little as Rs 100 and multiples thereafter. 
• The interest earned on the scheme is allocated monthly or quarterly. 
• However, the provision of availing the loan is not available. 

3. Canara Bank Kamadhenu Deposit Scheme (Reinvestment Plan)

This scheme provides lucrative returns to the investors by taking advantage of the compound interest factor.

• The interest is compounded every quarter and paid in full on maturity. 
• The investment's tenure can range between 5 to 120 months. 
• The provision to avail of a loan up to 90% of the deposit amount is present. 
• The provision for premature withdrawals is present, but the banks will levy a penalty. 
• The deposited amount is renewed automatically upon maturity. 

4. Canara Bank Arshaya Deposit Scheme (Senior Citizens) 

This scheme is exclusively designed to provide benefits to the investors in the senior citizen category. An additional interest rate is provided to them for their investment.

• The investor can select either the cumulative or the non-cumulative options. In the cumulative option, the interest amount is paid on maturity. In the non-cumulative option, the interest is paid regularly in monthly payments. 
• The tenure of the investment varies from 15 days to 120 months. 
• The minimum amount required to commence the deposit is Rs 1,000. 
• The deposited amount can be withdrawn before maturity. However, a penalty would be charged on the transaction. 
• An additional 0.5% is earned by the investors holding this deposit. 

Features of Canara Bank Fixed Deposit Rates

The Canara Bank Fixed Deposit is a lucrative saving and investment instrument to ensure guaranteed returns. The investors willing to park their investment in this scheme shall be aware of the following features before investing.

• Investment Term

The investment tenure in the Canara Bank FD generally ranges from seven to ten years. The length of the investment tenure is predetermined and non-negotiable. 

• Investment Cap

The minimum amount required to deposit in Canara Bank FD is Rs 1,000. There’s no cap on the maximum amount except the Canara Bank Tax Saving Fund. As the amount limit for the tax deductions is set at Rs 1,50,000.

• Rate of Interest

The interest rate offered by the Canara Bank FD between normal and senior citizens. The interest rate for normal citizens ranges from 2.95% to 5.50%. The interest rate for senior citizens varies from 2.95% to 6%. If the tenure of the investment exceeds 180 days. Then an additional interest rate of 0.5% is provided to the senior citizens. The interest is compounded quarterly at Canara Bank. 

• Premature Withdrawal 

Barring the Canara Bank Tax-Saving FD. All the other FD schemes provide a provision for premature withdrawal. Generally, the bank levies a penalty of 1% in case of early withdrawal. However, the terms and conditions are subject to change. 

• Loan Against FD 

The investor who park their savings in the Canara Bank fixed deposits are eligible to take out a loan against their deposited amount. The interest charged on such loans ranges from 5.5% to 7.4%. The tenure determined on such a loan will mirror the tenure of the Canara Bank FD. 

• Nomination Facility

The Canara Bank Fixed Deposit investors can avail of the provision to nominate beneficiaries on their deposits. 

• Automatic Renewal

The investor can use the facility to renew their Canara Bank FDs automatically. 

Benefits of Canara Bank Fixed Deposit Rates

The Canara Bank provides handsome interest rates on FDs to the investors. Here are the following benefits the investors avail after depositing in the account.

• Various Schemes   

The Canara Bank Fixed deposit schemes are offered in a diverse range to cater to the varying requirements of the investors. The banks offer various savings cum investment instruments that are eligible for tax deductions. The banks have also designed schemes specifically for senior citizens. 

• Minimal Deposits 

The minimum amount required to open a fixed deposit with the bank is Rs 1,000. This feature envelopes all the different income strata in the country. And provides them with an avenue to safely keep their product investment with assured returns. 

• Loan Against FD

Another distinctive feature that the investor can benefit from is the provision to avail of a loan against the fixed deposit. That means the investor who holds a fixed deposit account with the bank can take out a loan that is 90% of the amount in the deposit. 

Who is Eligible to Open a Canara Bank Fixed Deposit Account?

The individual who is interested in avail of the attractive interest and benefits of the Canara Bank Fixed Deposit must refer to the eligibility criteria mentioned below:

• Any individual be it a Resident or NRI, is eligible to open an FD 
• There is a provision to open a joint FD account with a limit up to 4 participants. 
• A minor can also open the account; on the condition that their guardian manages it. 
• Hindu Undivided Family (HUF)
• Company 
• Partnership 

Documentation Required For Canara Bank Fixed Deposit Rates

The investor interested in parking their investments through this scheme should maintain the following documents to open an FD account with Canara Bank.

• Application form for Fixed Deposit 
• Identity and Address proofs adhering to the KYC norms (PAN card, Aadhaar Card, Voter ID card, Passport, and driving license) 
• Senior Citizen Identity Card (required for Senior Citizens) 
• Photographs - 2 
• Supporting Documents authenticating partnerships, proprietorship, company, HUF, association or institution. 

How is the interest rate calculated on Canara Bank Fixed Deposit? 

The interest accrued on the fixed deposit is computed by factoring in the principal amount, interest rate, and tenure.

The following formulae to calculate the Interest on the deposit is employed

A = P (1+r/n)^nt

Where,

• A = Maturity Amount
• P = Principal
• r = Interest Rate
• n = number of times the interest was compounded
• t = tenure of the investment.

It is to be noted that the Canara Bank FD calculator can also help you to derive the amount immediately and conveniently. 

Canara Bank FD Returns Based on Investment Amount 

Interest Rate on the fixed deposit depends upon the investment amount.

Deposit Amount Below 2 Crores 

The table below shows the interest rate on a deposit amount of below Rs. 2 crores.

Amount Deposit below Above 2 Crores but less than ten crores 

The table below shows the interest rate accrued on a fixed deposit above Rs. 2 crores but less than 10 crores.

Compare Canara Bank Fixed Deposit Returns with Top Banks 

Find below the comparison between Canara Bank with other Top banks that offer Fixed Deposit.

How to Open a Canara Bank FD Account

The Canara Bank offers convenient avenues to open a Fixed deposit account. Canara Bank Fixed Deposit account can be opened in the following ways. 

Internet Banking 

Implement the following steps to open the Canara Bank Fixed Deposit account online:

• Sign up for Canara Bank Net Banking Account 
• Click on the ‘new account’ option on the Term Deposit page 
• Mention all the required information in the fields regarding the nominee information, and the deposit type. 
• Select the open deposit option after verifying the details. 
• Authenticate the transaction by clicking on ‘confirm’. The pop-up concerning the account opening message will appear on the screen.

Mobile App

The following steps must be ticked off to open a Fixed deposit FD with a bank through the Canara Bank Mobile App.

• Log in to the app after downloading it from the Play Store or App Store. 
• After clicking on the ‘new account option’, select the type of deposit. 
• Mention all the required information in the fields regarding the nominee information and the deposit type. 
• Select the open deposit option after verifying the details. 
• Authenticate the transaction by clicking on ‘confirm’. The pop-up concerning the account opening message will appear on the screen. 

Offline 

The individual can also visit the nearest Canara Bank Branch. And fill in the application form and provide the necessary documents to conclude the application process. You will receive an FD receipt after the application is processed successfully.