Canara Bank FD Interest Rates

About Canara Bank 

Canara Bank, one of India’s largest state-owned commercial banks, is headquartered in Bengaluru and has played a pivotal role in the country's banking journey. Established in July 1906 by Shri Ammembal Subba Rao Pai in Mangalore, the Bank has grown significantly over the years. After its nationalisation in 1969, Canara Bank expanded its presence and diversified its business.

A major milestone was the amalgamation of Syndicate Bank into Canara Bank on April 1, 2020, making it the fourth largest public sector bank in India. The merged entity operates over 10,000 branches and nearly 13,000 ATMs, managing a business size of more than ₹16 trillion.

Known for its strong customer focus and technological initiatives, Canara Bank offers a wide range of banking services, including attractive fixed deposit (FD) schemes. These FDs allow customers to invest a lump sum amount for a fixed tenure, offering higher returns than regular savings accounts.

With multiple tenure options and interest rates tailored for regular customers and senior citizens, Canara Bank fixed deposits provide a secure and rewarding way to grow savings.

Canara Bank FD Rates (Below ₹3 Crore) 

Note: The data is as of June 9, 2025

Features and Benefits of Canara Bank Fixed Deposit  

• Canara Bank fixed deposits come with flexible tenures starting from 7 days and going up to 10 years.
• Senior citizens are eligible for an additional interest of 0.50% per annum over standard rates.
• Customers can partially withdraw their deposit in multiples of ₹1,000 while the remaining amount continues to earn interest.
• Loan facility of up to 90% of the deposit value is available, offering liquidity without breaking the FD.
• Interest earnings on the deposit are payable only upon maturity, depending on the chosen plan.
• Eligible depositors include resident individuals, Hindu Undivided Families (HUFs), companies, trusts, and partnership firms.

Types of Canara Bank FD Schemes

Regular Fixed Deposit

• Open with a minimum deposit of ₹1,000 for tenures ranging from 15 days to 10 years
• Interest payout options include monthly (discounted), quarterly, half-yearly, or annually
• Senior citizens earn an extra 0.50% p.a. on deposits below ₹2 crore for tenures of 180 days or more
• Up to 90% of the deposit value is eligible for a loan facility
• Auto-renewal is available for similar tenure at prevailing interest rates on maturity (excluding specific schemes)

Kamadhenu Deposit – Re-investment Plan

• This is a re-investment FD where interest is compounded quarterly and paid at maturity
• Tenure ranges from 5 months to 10 years with a minimum deposit of ₹1,000
• Senior citizens enjoy an additional 0.50% p.a. interest rate
• Loan facility is available for up to 90% of the deposit amount
• Auto-renewal option is provided for continued investment

Ashraya Deposit Scheme (For Senior Citizens)

• Designed exclusively for individuals aged 60 years and above
• Accounts can be held single or jointly, with the senior citizen as the primary holder
• Interest payout options include monthly (discounted), quarterly, and half-yearly
• Kamadhenu under this scheme compounds interest quarterly and pays on maturity
• Loan facility of up to 90% of the deposit amount is available

Canara Bank Tax Saver Scheme

• Deposit as low as ₹100 (in multiples) up to a maximum of ₹1.5 lakh per financial year
• Fixed tenure of 5 years with monthly (discounted) or quarterly interest payout options
• Kamadhenu option offers compounded quarterly interest, payable on maturity
• Offers income tax benefits under Section 80C of the Income Tax Act
• Nomination facility is available, except for certain entities like HUFs, firms, and minors

Canara Green Deposit

• Funds support green projects like renewable energy, eco-friendly infrastructure, and sustainability
• Tenure options include 1111, 2222, and 3333 days, with a minimum deposit of ₹1,000
• Senior citizens get an extra 0.50% p.a. interest on tenures of 180 days or more
• Loan facility is available against the deposit amount
• Nomination facility is offered for added security

Term-wise Canara Bank Fixed Deposit Rates

Short-Term Fixed Deposits

These FDs range between 7 days to less than a year, offering interest rates from 3.50% to 6.00% for regular customers and 4.00% to 6.50% for senior citizens. This type of FD can be suitable for short-term savings and quick liquidity.

Medium-Term Fixed Deposits

These FDs range from 1 year to less than 5 years, with an interest rate of 6.50% for regular customers and 7.00% for senior citizens. This can be a suitable option for planned expenses over the medium term.

Long-Term Fixed Deposits

These FDs range from 5 years to 10 years, offering 6.50% for regular customers and up to 7.00% for senior citizens. This can be suitable for long-term wealth creation with stable and assured returns.

How to Invest in a Canara Bank Fixed Deposit?

Internet Banking

• Log in to your Canara Bank internet banking account
• Navigate to the ‘Term Deposit’ section and select ‘New Account’ to choose your preferred deposit type
• Enter the required details including nominee information, payment method, and maturity instructions
• Click on ‘Open Deposit’ to review the filled information
• Confirm the details and complete the authentication.
• A confirmation message will appear once the FD account is successfully opened

Mobile App – Canara Bank App

• Download and log in to the Canara Bank App
• Select the ‘New Account’ option and choose your deposit type
• Provide all necessary details such as payment mode, nominee details, and maturity preferences
• Tap on ‘Open Deposit’ to verify the information
• Hit ‘Confirm’ and authenticate the transaction
• A confirmation message will be shown once the FD is opened

Offline Mode (Branch Visit)

• Visit the nearest Canara Bank branch
• Fill out the FD application form and submit it along with required documents and the deposit amount
• Upon successful processing, the bank will issue a fixed deposit receipt as proof of your account opening

Eligibility for Opening a Canara Bank FD Account

• Resident individuals
• Non-Resident Indians (NRIs)
• Minors ( under guardianship)
• Members of Hindu Undivided Families (HUFs)
• Companies, firms, and other recognised institutions

Documents Required to Open CanaraFD Account

Proof of Identity (any one of the following)

• Aadhaar Card
• PAN Card
• Valid Passport
• Voter ID
• Ration Card with photograph
• Driving Licence
• Senior Citizen ID (if applicable)

Proof of Address (any one of the following)

• Aadhaar Card
• Passport
• Driving Licence
• Recent Electricity Bill
• Latest Telephone Bill
• Address certificate issued by the Post Office

Tax on Canara Bank Fixed Deposit

The Canara Bank Tax Saving FD offers tax benefits under Section 80C, allowing savings of up to ₹1.5 lakh per year. Other Canara Bank FDs do not provide any tax deductions. The interest earned on Canara Bank FDs is taxable as per your income tax slab.

If the total interest crosses ₹40,000 in a year, 10% TDS (Tax Deducted at Source) is applied. For senior citizens, this limit is ₹50,000 per year. If you don’t submit your PAN details, the TDS rate increases to 20%.

Premature Closure of Canara Bank Fixed Deposit

Premature withdrawal of Canara Bank FDs attracts a 1% penalty for regular and Kamadhenu deposits below ₹2 crore opened or renewed on or after March 12, 2019. Under the Capital Gains Account Scheme-1988, a 1% penalty applies irrespective of the amount.

Partial withdrawal in multiples of ₹1,000 is allowed. For Ashraya Deposits (senior citizens), a 1% penalty applies to deposits below ₹1 crore (February 4, 2011) and below ₹2 crore ( March 12, 2019). Tax Saver FDs cannot be closed prematurely, except in the event of the depositor’s death. Green Deposits also attract a 1% penalty on early withdrawal.