Canara Bank is one of the popular Indian banks that were started long back in 1906 and considered it as the top 10 oldest banks from our country. Currently the Head Quarter is located in the Silicon Valley Bangalore. Being a Govt. Undertaking bank, it is growing at fast speed from last 10 years. Today they have over 5,700 + branches along with 9,100 + AMTS across the country. Moreover they also have branches in other countries like USA, UK, UAE etc.
Canara Bank FD Rates
Started over 110 years back, today Canara Bank developed as a leading Bank and equipped with online and phone banking. Today most of the services can be accessed online including opening fixed deposit. It is possible to open a FD account in Canara Bank without going to the branch using online banking facility. The rate of interest on FD is very attractive – currently bank is providing 7.50 % of interest rates on 180 days of term deposit and customers can available 7.75% of interest rates if fixed it for 1 to 5 years of tenure. However annualized interest yield will be higher if withdraw the principal amount and interest rates after maturity.
Any Indian citizen can open the fixed deposit account with Canarab Bank. A customer must have a saving or current account with the Canara Bank and can choose any of the existing fixed deposit schemes.
Types of Fixed Deposits in Canara Bank?
There are basically 5 types of FD schemes with Canara Bank which are as follows:
- Short term
- Long term
- For Senior Citizens
- Special FD
- Tax Saving FD
Customers will be getting 4.00% of interest rates of saving account (even without FD).
Currently the FD rates for 61 to 90 days are only 6.25% whereas it can go to 7.50% of interest rates if fixed it for 180 to 269 days.
Whereas Senior Citizens will be getting 0.50% of additional interest rates on all available FD schemes.
The Canara Bank is currently open a special FD schemes under which customers can get 7.85% of interest rates for 444 days and 555 days of FD.
Whereas the Tax saving FD is available at 7.50% of interest rates which will be locked for 5 years.
Is there any penalty on Premature Withdrawal?
If you withdraw the amount before the maturity period then Bank will charge 1% as a penalty charges. Therefore premature withdrawing is a bad idea until you really require fund on urgent basis.
Is FD Scheme Taxable?
That depends, if your annual income is less than 2.5 lakh (after including the interest earned from FD) then you won’t have to pay tax. For this you will have to submit the Form 15 G to the branch so that bank won’t deduct any TDS. However if your total income is above 2.50 lakh in any financial year or the FD interest is more than 10,000 then bank will deduct 10% of the TDS.
Note: Please note that if Form 15 G is not submitted to your branch then Bank will automatically deduct the TDS (if applicable).
How to open FD account?
Opening a fixed deposit account is very easy with Canara Bank. There are 02 ways to do that:
- Go to the branch and filled up the FD form.
- Go to the official website, login to your account and request for an FD online.
The best option will be to go directly to the http://www.canarabank.com/ , login to your account and place a request to open a FD.
Canara Bank Interest Rates of Fixed Deposit
|Duration||Interest Rate (in % per Annum)|
|For General||For Senior Citizen|
|31 Days to 45 Days||5.50||6.00|
|46 Days to 60 Days||6.50||7.00|
|61 Days to 90 Days||6.50||7.00|
|91 Days to 180 Years||6.50||7.00|
|181 Days to 270 Days||7.00||7.50|
|271 Days to 1 Years||7.10||7.60|
|1 Years to 5 Years||7.00||7.85|
|5 Years to 7 Years||7.00||7.50|
|8 Years to 10 Years||7.0||7.500|
Updated in Dec 2016