Explore Canara Bank FD Interest rates 2025
With uncertain market fluctuations and everything that comes with it, it becomes nearly impossible to predict or promise a stable and safe return of investment. This uncertainty has led the majority of Indians to opt for the ultimate alternative- FDs. In this article we will shed light on various types of FDs and their interest rates offered by Canara Bank.
Canara Bank:
Canara bank is one of the oldest and largest public sector banks of India. Established in 1906 at Karnataka, Canara bank now has its branches spread across Dubai, London and New York. The bank has a network of 6310 branches and more than 8851 ATMs spread across 4467 centers in India.
Understanding Canara Bank FD Rates:
Punjab National Bank provides multiple fixed deposit schemes to its customers with interest rates varying from 4% p.a.- 7.75% p.a. Here are some of the schemes and their interest rates.
1. Canara Bank Domestic/NRO Term Deposit FD Rates Below Rs.2 Crore
| Maturity Period | Interest Rate for General Citizens (p.a.) | Interest Rate for Senior Citizens (p.a.) |
| 7 Days to 45 Days | 4.00% | 4.00% |
| 46 Days to 90 Days | 5.25% | 5.25% |
| 91 Days to 179 Days | 5.50% | 5.50% |
| 180 Days to 269 Days | 6.15% | 6.65% |
| 270 Days to less than 1 Year | 6.25% | 6.75% |
| 1 Year Only | 6.85% | 7.35% |
| 444 Days | 7.25% | 7.75% |
| Above 1 Year to less than 2 Years | 6.85% | 7.35% |
| 2 Years & above to less than 3 Years | 6.85% | 7.35% |
| 3 Years & above to less than 5 Years | 6.80% | 7.30% |
| 5 Years & above to 10 Years | 6.70% | 7.20% |
- Canara Bank Domestic/NRO Term Deposit FD Rates between Rs.2 Crore and Rs.10 Crore
| Maturity Period | Callable – Interest Rate (p.a.) |
| 7 days to 45 days | 4.50% |
| 46 days to 90 days | 5.00% |
| 91 days to 179 days | 6.00% |
| 180 days to 269 Days | 6.80% |
| 270 days to less than 1 Year | 7.25% |
| 1 year only | 7.65% |
| Above 1 year to less than 2 years | 7.65% |
| 2 years & above to less than 3 years | 6.25% |
| 3 years & above to less than 5 years | 5.00% |
| 5 years & above to 10 Years | 5.00% |
- Canara Bank NRE FD Rates w.e.f. 19 February 2024
| Tenure | Interest Rates (p.a.) |
| 1 year only. | 6.85% |
| 444 Days | 7.25% |
| Above 1 year to less than 2 years | 6.85% |
| 2 years and above to less than 3 years | 6.85% |
| 3 years and above to below 5 years | 6.80% |
| 5 years and above to 10 years | 6.70% |
- Canara Bank Tax Saver Deposit
| Maturity Period | Interest Rate for General Citizens (p.a.) |
| 5 years | 6.70% |
Note: All the FD interest rates mentioned above are effective as of 1 February 2024 and can change at the discretion of Canara Bank.
Factors Affecting Canara Bank FD Interest Rates:
Several factors influence the interest rates offered on Canara Bank FDs:
- Current Economic Conditions: The Reserve Bank of India (RBI) policy rates play a significant role in shaping interest rates across the banking sector.
- Competition: Banks constantly adjust their interest rates to stay competitive in the market.
- Risk Profile: The risk associated with lending money to customers affects the interest rates offered on FDs.
Advantages and Disadvantages of Investing in Canara Bank FDs:
Advantages:
- Guaranteed Returns: Canara Bank FDs provide assured returns, making them a low-risk investment option.
- Flexibility in Tenure: You can choose a tenure that suits your financial needs.
- Early Withdrawal: While subject to penalties, you can withdraw your FD before maturity if required.
- Tax Benefits: Interest earned on FDs is generally taxable, but certain schemes might offer tax benefits.
- Reliable and Secure: Canara Bank is a reputable public sector bank with a strong financial history
Disadvantages:
- Lower Returns compared to other investment options: FDs generally offer lower returns than stocks or mutual funds.
- Inflation Risk: FD returns might not keep pace with inflation, reducing the real value of your investment.
- Penalty for early withdrawal: Premature withdrawal can lead to a reduction in interest earned.
Conclusion:
FDs are a safe and stable investment vehicle, but they do come at very low interest rates. If you want to explore stable fixed income investment schemes that offer higher interests than that of traditional FDs, head over to Tap Invest and tap into the world of elite deals.
FAQs On Canara Bank FD Interest Rates 2025:
- What is the minimum amount required to open an FD?
>> The minimum deposit amount varies depending on the FD scheme. - How often are interest payments made?
>>Interest can be paid monthly, quarterly, half-yearly, or on maturity. - Can I extend the tenure of my FD?
>>Yes, you can usually extend the FD tenure upon maturity, subject to applicable interest rates. - What happens if I don’t renew my FD upon maturity?
>>If you don’t renew your FD, it will mature and the principal amount will be credited to your account.
