Canara Bank

Canara Bank FD Features & Benefits

• Enjoy an easy account opening process.

• The minimum deposit amount required is INR 1,000 only.

• Attractive rates for regular fixed deposit scheme and other products.

• Funding of up to 90% of the fixed deposit value.

• Part withdrawal facility available in units of INR 1,000 only.

Penalty on Premature Withdrawal

If you face any financial emergency during the Canara Bank FD account tenure, you can break your FD anytime and utilise the proceeds. The bank, however, charges a penalty of 1% on premature withdrawal. Here's a list of rules concerning a penalty.

• A penalty of 1% shall apply to premature or part withdrawal/premature extension of deposits less than INR 3 crore.

• The penalty amount will be lower of the interest rate below the applicable rate based on the amount and tenure and for the tenure the FD has run or 1% below the offered FD rate.

• You can get a penalty waiver on a Canara Bank fixed deposit of more than INR 3 crore booked or renewed on or after 11.06.24.

• The penalty is also waived on premature extension of domestic fixed deposits of less than INR 3 crore provided the extension is for a period beyond the period agreed upon.

• The bank won't offer any interest on premature withdrawal or extension of an FD account before 7 days of opening it.

Tips to Avoid a Premature FD Withdrawal

Avoiding a premature FD withdrawal and the subsequent penalty is possible using any of the following ways.

Loan Against Fixed Deposit - You can apply for a loan against a fixed deposit to meet your instant liquidity needs. The bank can grant you a loan of up to 90% of your FD amount. The loan will run up to the time left for the maturity period to complete. For example, you opened a 7-year FD two years ago. Now, if you take a loan against FD, the bank will sanction it for a maximum of five years.

Open Multiple FDs - Choosing multiple FDs with different tenures is a good investment strategy to optimise returns and liquidity. Go for shorter and longer tenures to have liquidity when needed while allowing your capital to grow significantly.

Canara Bank FD Rates vs Other Bank FD Rates

Different Types of Canara Bank FD Schemes

The bank offers various FD schemes to meet the unique needs of depositors.

Regular Fixed Deposit

• The account is opened with a minimum of INR 1,000.

• There's no maximum amount limit for regular fixed deposits.

• It helps you grow your interest income at competitive interest rates.

• The interest payment is available at Monthly, Quarterly, Half-yearly or Annual intervals.

• Special rates for senior citizens are available.

• The minimum deposit period required is 15 days. However, a single deposit of INR 5 lakh and above can be granted a tenure of 7-14 days.

• The loan facility is available up to 90% of the FD amount.

• Avail of the nomination facility.

Kamadhenu Deposit

• The account is opened with a minimum of INR 1,000.

• There's no maximum amount limit set for this FD account.

• You can open the account with a minimum tenure of five months.

• The maximum tenure allowed is 10 years.

• The interest is payable on maturity.

• A loan of up to 90% of the deposit amount is available.

• Partial withdrawals are available in units of INR 1,000 is available.

• Both general citizens and senior citizens can open this account.

Canara Tax Saver Scheme

• Enjoy tax deductions of up to INR 1.5 lakh in a financial year under Section 80C of the Income Tax Act.

• The minimum deposit allowed is INR 100 and the maximum is capped at INR 1.5 lakh in a financial year.

• A lock-in period of five years applies to this deposit.

• Both monthly and quarterly interest payment options are available.

Green Fixed Deposit

• Canara Bank offers this fixed deposit to those who want to grow wealth as well as protect the environment.

• Attractive interest rates are available.

• Additional interest rates for senior citizen depositors.

• A loan against a fixed deposit is available.

Ashraya Deposit Scheme

• It applies to domestic fixed deposits and Kamadhenu deposits.

• The scheme is for individuals aged above 60 years.

• The minimum deposit required is INR 1,000.

• There's no maximum limit for this type of FD.

• You can choose to invest in it for 15 days to 10 years.

• Interest payment frequencies - Monthly at discounted rates, quarterly and half-yearly.

• Loan available up to 90% of the fixed deposit amount.

Term-wise Canara Bank Fixed Deposit Rates

Short-term Interest Rates

The rates for a Canara Bank FD for a period up to 1 year range from 4.00%-7.70% per annum.

Medium-term Interest Rates

The bank offers an interest rate of 5.00%-7.90% per annum for a period ranging from a year to less than five years.

Long-term Interest Rates

The interest rate for a period ranging from 5-10 years is 5.00%-7.20% per annum.

How to invest in Canara Bank FD?

You can invest using any of the following ways.

Internet Banking

• Log in to Internet banking using your customer ID and password

• Go to the 'Term Deposit' page and select the 'New Account' option and the type of deposit account.

• Mention payment, maturity instructions and nominee details.

• Tap on 'Open Deposit' and authenticate the details.

• Click on the 'Confirm' button and verify the transaction.

• A confirmation message pop-up will appear highlighting that the account has opened.

• You will receive an email about the FD advice.

Mobile Banking

• Download the Canara Bank App online and log in using your credentials.

• Select the 'New Account' option and the deposit account type.

• Mention payment, maturity instructions, nominee details, etc.

• Tap on 'Open Deposit' and authenticate the details.

• Click on the 'Confirm' button and verify the transaction.

• A confirmation message pop-up will appear highlighting that the account has opened.

• You will receive an email about the FD advice.

Offline

• Visit the Canara Bank's nearest branch to open a fixed deposit account.

• Ask for the fixed deposit account opening form.

• Fill in the details such as your name, withdrawal bank account details, nominee information, etc.

• Submit the FD account opening cheque.

• Your FD account will be opened subject to successful cheque realisation.

• You'll receive an email about the FD advice.

Note - You may be required to have a Canara Bank savings account when opening an FD using any of the channels.

Eligibility to Open a Canara Bank FD Account

Any of the following is eligible to open a Canara Bank FD account.

• Individuals

• Joint (Not More Than Four Holders)

• A Guardian on Behalf of a Minor

• Hindu Undivided Families (HUFs)

• Partnership Firms

• Companies

• Association

• Any Other Institution

Tax on Canara Bank Fixed Deposit

Canara Tax Saver Scheme is a type of fixed deposit that offers tax benefits to investors.

As an investor, you can receive tax deductions of up to INR 1.5 lakh in a financial year.

These tax deductions help increase your take-home salary. Tax benefits apply to the investment you make in a financial year.

You can invest as little as INR 100 and as high as INR 1.5 lakh in a financial year.

However, tax benefits won't apply to the interest earned. Interest amounts exceeding INR 40,000 (regular customers) and INR 50,000 (senior citizens) in a financial year is subject to a 10% TDS deduction by the bank.

If your overall income does not fall in the income tax bracket, you can get the TDS waived by submitting Form 15G/H to Canara Bank.

Loan Against Canara Bank FD

Canara Bank offers a loan against fixed deposits to meet your instant liquidity needs. You can get a loan up to 90% of the FD value. The interest paid on it remains lower compared to unsecured loans such as a personal loan. The bank offers a loan against Regular Fixed deposit, Green Deposit, Kamdhenu Deposit and Aashray Deposit Scheme.