Latest Canara Bank FD Interest Rate April 2023
Canara Bank FD interest rate ranges between 4% and 7.25% for general depositors. Senior citizens are eligible for 0.50% higher interest rates for deposits less than Rs.2 Cr and with tenor of 180 Days and above. Canara Bank fixed deposit rates for senior citizens ranges from 4% to 7.75%. The tenure for a regular fixed deposit scheme ranges between 7 days to 10 years.
Additionally, Canara bank offers a variety of fixed deposit schemes including Canara Bank Kamadhenu Deposit (Reinvestment Plan), Canara Bank Tax Saver Scheme, Canara Bank Ashraya Deposit Scheme (For Senior Citizens) and Tax Save Scheme, to name a few. The bank also offers term deposit schemes for NRIs. In this blog, we have listed out Canara Bank fixed deposit interest rates, the different schemes and their features and benefits in detail.
Canara Bank FD Interest Rate 2023 Highlights
| Interest Rate | 4% – 7.75% (including senior citizen scheme) |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | NA (5 years for Tax Saver FD) |
How to Calculate Canara Bank FD Interest Rate?
You can calculate the interest earned on your fixed deposit account using either of the two methods – simple interest or compound interest method. If you use the simple interest method, you can calculate Canara Bank fixed deposit interest by multiplying the invested principal amount by the predetermined rate of interest and investment tenure.
1. Simple Interest
Here is the formula to calculate simple interest on your fixed deposit amount:
Simple Interest = (P*R*T)/100,
Here,
- P = Principal Amount Invested
- R = Rate of Interest (%)
- T = Tenure
For example, let’s say you have invested ₹5 lakh at 7% p.a. rate of interest for a tenure of 10 years. In this situation, P = ₹5 lakh, R = 7% and T = 10 years.
Simple Interest = (5,00,000 * 7 * 10) / 100 = ₹3,50,000
Maturity Value = Principal Amount + Simple Interest = ₹5,00,000 + ₹3,50,000
Therefore, at the time of your FD’s maturity, you will receive ₹8,50,000.
2. Compound Interest
You can also use the compound interest formula to calculate your fixed deposit interest amount. Compound interest calculation considers the interest on the earned interest.
If you use the compound interest method, the interest that you will receive will get added to the principal amount and then interest will be calculated on that amount. This cycle continues till the end of the tenure and you receive a consequent amount of interest over time.
Formula for calculation of total amount if the interest is compounded is provided below:
A = P (1+r/n) ^ (n * t)
Here,
- A = Maturity Amount
- P = Principal Amount Invested
- r = Rate of Interest
- n = Number of times interest is compounded in a year
- t = Number of Years
Let’s say that you have invested ₹5,00,000 at 7% per annum for a tenure of 10 years. In this situation, P = ₹5,00,000, r = 7%, n = 4 (once in every quarter), t = 10 years.
Therefore, Total Maturity Amount = 5,00,000 (1+0.07/4) ^ (4*10)
= ₹10,00,798.67
Hence, Interest Amount = ₹10,00,798.67 – ₹5,00,000 = ₹5,00,798.67
However, manual calculations could be extremely complex. Instead, you can use any FD interest calculators available online to save your time as well as ease out the entire calculation process.
Factors that Can Affect Canara Bank Fixed Deposit Rate
Before going forward with opening a fixed deposit account, it might be helpful to understand which are the factors that affect the returns. Let us take a look at some of the factors that impact Canara Bank fixed deposit interest rates:
1. FD Duration
Duration of FD is directly related to its interest rate. If you choose an extended duration, you will typically get a high interest rate for your FD investment. For example, if you choose a tenure of 10 years, you may get a higher interest rate than what you would have got for a 100-year tenure.
2. Repo Rate Fluctuation
Repo rate is the rate at which the Reserve Bank of India lends money to banks in case there is a shortfall of funds. A repo rate increase also leads to hiked fixed deposit interest rates and vice versa. Your Canara Bank fixed deposit interest rates could also be impacted due to a new fiscal or monetary policy.
3. Your Age
Age is also another important factor that influences fixed deposit interests. Senior citizens are offered higher interest rates in comparison to individuals below 60 years of age. If you open a fixed deposit account with Canara Bank, you will get an additional interest of 0.50% in case you are a senior citizen.
Canara Bank FD Interest Rate for General Public
Canara Bank fixed deposit rates vary based on the age of the depositor. For the general public who aren’t senior citizens, term deposits less than ₹2 crore and above ₹2 crore on the basis of tenure. For a deposit of less than ₹2 crore, which is referred to as a domestic term deposit, you can get an interest of up to 7.25% depending on the tenure.
On the other hand, if your deposit is above ₹2 crore, which is known as a domestic bulk term deposit, you can get an interest of up to 6%. Following is the table that shows the Canara Bank fixed deposit interest rate applicable to general public:
| Tenure | Interest on Deposits Below ₹2 crore | Interest on Deposits Above ₹2 crore |
| 7 days to 45 days | 4.00% | 2.90% |
| 46 days to 90 days | 5.25% | 3.10% |
| 91 days to 179 days | 5.50% | 3.35% |
| 180 days to 269 days | 6.25% | 3.35% |
| 270 days to 1 year | 6.50% | 5.75% |
| 1 year only | 7.00% | 6.00% |
| 444 days | 7.25% | NA |
| 1 year to 2 years | 6.90% | 6.00% |
| 2 years to 3 years | 6.85% | 6.00% |
| 3 years to 5 years | 6.80% | 6.00% |
| 5 years to 10 years. | 6.70% | 3.40% |
Canara Bank FD Interest Rate for Senior Citizens
In case you open an FD account with Canara Bank and are above the age of 60, you will be eligible to get an additional interest of 0.50%. Please refer to the table below to get a clear image of the tenure and the Canara Bank FD interest rates 2023 for senior citizens:
| Tenure | Interest on Deposits Below ₹2 crore |
| 7 days to 45 days | 4.00% |
| 46 days to 90 days | 5.25% |
| 91 days to 179 days | 5.50% |
| 180 days to 269 days | 6.75% |
| 270 days to 1 year | 7.00% |
| 1 year only | 7.50% |
| 444 days | 7.75% |
| 1 year to 2 years | 7.40% |
| 2 years to 3 years | 7.35% |
| 3 years to 5 years | 7.30% |
| 5 years to 10 years | 7.20% |
**Note that rates are subject to change without prior notice.
Canara Bank FD Interest Rate for NRI
Canara Bank offers a wide range of term deposit or FD products for Non-resident Indians (NRIs). If you are an NRI, you can deposit any sum of money in Canara Bank and earn the applicable amount of interest. Canara Bank FD interest rate differs based on the type of NRI account.
The different types of NRI FD accounts are:
- NRO Term Deposit Scheme
- NRE Term Deposit Scheme
- FCNR(B) (Foreign Currency Non-Resident) Deposits
- RFC (Resident Foreign Currency) Deposits
Canara Bank NRO Interest Rate
Non-resident ordinary or NRO FD account refers to an account that allows Overseas Citizens of India (OCI) as well as Person of Indian Origin (PIO) to manage their foreign currency earnings in India. In case you earn in a foreign currency, you need to deposit your funds in an NRO account.
NRO accounts allow NRIs to open a joint account with any Indian resident as well. NRIs can get up to 7.15% interest rate if they deposit in the Canara Bank NRO term deposit. Below is a table providing Canara Bank FD rates 2023 for NROs:
| Tenure | Interest on Deposits Below ₹2 crore | Interest on Deposits Above ₹2 crore |
| 7 days to 45 days | 4.00% | 2.90% |
| 46 days to 90 days | 5.25% | 3.10% |
| 91 days to 179 days | 5.50% | 3.35% |
| 180 days to 269 days | 6.25% | 3.35% |
| 270 days to 1 year | 6.50% | 5.75% |
| 1 year only | 7.00% | 6.00% |
| 444 days | 7.25% | NA |
| 1 year to 2 years | 6.90% | 6.00% |
| 2 years to 3 years | 6.85% | 6.00% |
| 3 years to 5 years | 6.80% | 6.00% |
| 5 years to 10 years | 6.70% | 3.40% |
Canara Bank NRE FD Interest Rate
NRE or Non-resident External FD is the type of fixed deposit account that lets Non-resident Indians hold foreign currency deposits in India. Under the rules of this account, the foreign currencies get converted into Indian currency denominations. You can take a look at the Canara Bank NRE FD rates in the table below:
| Tenure | Interest on Deposits Below ₹2 crore | Interests on Deposits Above ₹2 crore |
| 1 year only | 7.00% | 6.15% |
| 444 days | 7.25% | NA |
| 1 year to 2 years | 6.90% | 6.25% |
| 2 years to 3 years | 6.85% | 6.25% |
| 3 years to 5 years | 6.80% | 6.25% |
| 5 years to 10 years | 6.70% | 3.65% |
Canara Bank FCNR Interest Rate
A Foreign Currency Non-Resident account allows NRIs to deposit their foreign currency earnings in India. The amount that you deposit will be retained in a foreign denomination; this saves you from the risks of exchange rate fluctuation.
Canara Bank allows you to deposit US Dollar, Pound Sterling, Euro, Canadian Dollar and Australian Dollar. Take a look at the table below to get an idea about Canara FD rates and what interest rate you can expect for your deposits in different currencies:
| Tenure | Currency | ||||
| USD | GBP | EURO | CAD | AUD | |
| 1 year to 2 years | 5.25% | 4.25% | 1.50% | 4.30% | 3.50% |
| 2 years to 3 years | 4.25% | 3.00% | 1.50% | 4.10% | 3.25% |
| 3 years to 4 years | 4.00% | 3.00% | 1.50% | 3.85% | 3.00% |
| 4 years to 5 years | 4.00% | 3.00% | 1.50% | 3.50% | 3.00% |
| 5 years only | 3.90% | 3.00% | 1.50% | 3.50% | 3.00% |
Canara Bank RFC Interest Rate
RFC or Resident Foreign Currency account allows NRIs planning to return to the country to maintain their funds in foreign currency in India. Canara Bank offers the opportunity to open RFC accounts in various foreign currencies namely US Dollar, Pound Sterling, Euro, Canadian Dollar and Australian Dollar.
Here is the tabular representation of Canara Bank deposit rates and tenures for RFC accounts:
| Tenure | Currency | ||||
| USD | GBP | EUR | CAD | AUD | |
| 1 month to 3 months | 1.50% | 0.75% | 0.05% | 0.75% | 0.75% |
| 3 months to 6 months | 1.50% | 0.75% | 0.20% | 1.25% | 1.25% |
| 6 months to 1 year | 1.75% | 1.50% | 0.25% | 1.50% | 1.50% |
| 1 year to 2 years | 5.25% | 4.25% | 1.50% | 4.30% | 3.50% |
| 2 years to 3 years | 4.25% | 3.00% | 1.50% | 4.10% | 3.25% |
| 3 years only | 4.00% | 3.00% | 1.50% | 3.85% | 3.00% |
Canara Bank Vs Other Banks FD Interest Rates
Following is a table that will provide you with the information on fixed deposit account tenure and interest rates offered by a number of public sector and private sector banks in India. Please note that we have considered the deposit amount less than ₹2 crore based on the common threshold in India.
| Bank Name | Interest Rate |
| Axis Bank Fixed Deposit | 3.50% to 7.26% |
| HDFC Fixed Deposit | 3% to 7.75% |
| ICICI Bank Fixed Deposit | 3% to 7.60% |
| IDFC First Bank Fixed Deposit | 3.50% to 8.25% |
| Yes Bank Fixed Deposit | 3.25% to 8.25% |
| Kotak Mahindra Bank Fixed Deposit | 2.75% to 7.70% |
| Paytm Payments Bank Fixed Deposit | 2.75% to 5.5% |
| Bandhan Bank Fixed Deposit | 3.00% to 8.50% |
| SBI Fixed Deposit | 3% to 7.50% |
| Bank of Baroda Fixed Deposit | 3% to 7.75% |
| Union Bank of India Fixed Deposit | 3% to 8.05% |
| Punjab National Bank Fixed Deposit | 3.5% to 8.05% |
| Bank of India Fixed Deposit | 3% to 7.65% |
| IndusInd Bank Fixed Deposit | 3.5% to 8.25% |
| Canara Bank Fixed Deposit | 4% to 7.75% |
| DBS Bank Fixed Deposit | 2.5% to 8% |
| Punjab and Sind Bank Fixed Deposit | 2.80% – 7.60% |
| RBL Bank Fixed Deposit | 3.5% to 8.3% |
| IDBI Bank Fixed Deposit | 3% to 7.25% |
| HSBC Fixed Deposit | 2.85% to 8% |
| UCO Bank Fixed Deposit | 2.90% to 7.20% |
| Federal Bank Fixed Deposit | 3% to 7.75% |
| Indian Bank Fixed Deposit | 2.80% to 6.70% |
| Central Bank of India Fixed Deposit | 4% to 7.25% |
This table is for educational purposes only. Navi neither endorses any of the products mentioned above nor takes responsibility for the data mentioned. Feel free to consult a financial advisor before taking any investment decision.
Features and Benefits of Canara Bank Fixed Deposit
Here are some of the features and benefits of Canara Bank FD:
- You can open a Canara Bank FD account with a minimum investment of ₹1000
- There is no ceiling for maximum investment.
- It is up to the depositor to choose either monthly, quarterly, half-yearly or annual interval for interest payment.
- Auto-renewal facility is available.
- Loan facility is available for up to 90% of the deposit amount.
- Nomination facility is available.
- Premature withdrawal is permitted.
Different Types of Canara Bank FD Schemes
Canara Bank offers multiple fixed deposit schemes for various tenures and different interest rates. Every scheme comes with different sets of benefits. Here is a list of Canara Bank fixed deposit schemes:
- Canara Bank Fixed Deposit
- Canara Bank Kamadhenu Deposit (Reinvestment Plan)
- Canara Tax Saver Scheme
- Canara Bank Ashraya Deposit Scheme (for Senior Citizens)
- Canara Bank Nithya Nidhi Deposit (NND) Scheme
- Canara Bank NRO Deposit
- Canara Bank NRE Deposit
- Canara Bank FCNR (B) Deposit
- Canara Bank RFC Deposit
1. Canara Bank Fixed Deposit
- Minimum Deposit: ₹1000
- Maximum Deposit: No Ceiling
- Tenure: 7 days to 10 years
- Interest Rate: 3.25% to 7.65%
- Eligibility Criteria: Indian resident
2. Canara Bank Kamadhenu Deposit (Reinvestment Plan)
- Minimum Deposit: ₹1000
- Maximum Deposit: No Ceiling (Can be reinvested in odd amounts also)
- Tenure: 5 months to 10 years (Can be odd periods also)
- Interest Rate: 3.25% to 7.65%
- Eligibility Criteria: Indian resident
3. Canara Tax Saver Scheme
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1,50,000 per person (deposit should be in multiples of 100)
- Tenure: 5 years
- Interest Rate: 5.75% to 6.75%
- Eligibility Criteria: Indian residents
4. Canara Bank Ashraya Deposit Scheme (for Senior Citizens)
- Minimum Deposit: ₹1000
- Maximum Deposit: No Ceiling (Can be deposited in odd amounts also)
- Tenure: 15 days to 10 years
- Interest Rate: 3.25% to 7.65%
- Eligibility Criteria: Indian resident
5. Canara Bank Nithya Nidhi Deposit (NND) Scheme
- Minimum Deposit: ₹50
- Maximum Deposit: ₹1000 in a day and ₹30,000 in a month
- Tenure: 63 months
- Interest Rate: 2.00% on maturity (63 months)
- Eligibility Criteria: Indian resident
6. Canara Bank NRO Deposit Scheme
- Minimum Deposit: ₹1000
- Maximum Deposit: No Ceiling
- Tenure: 7 days to 10 years
- Interest Rate: 3.25% to 7.65%
- Eligibility Criteria: Non-resident Indians
7. Canara Bank NRE Deposit Scheme
- Minimum Deposit: ₹1000
- Maximum Deposit: No Ceiling
- Tenure: 1 year to 10 years
- Interest Rate: 3.40% to 7.15%
- Eligibility Criteria: Non-resident Indians
8. Canara Bank FCNR (B) Deposit Scheme
- Minimum Deposit: USD 1000 or equivalent
- Maximum Deposit: No Ceiling
- Tenure: 1 year to 5 years
- Interest Rate: 3.00% to 5.25%
- Eligibility Criteria: Non-resident Indians
9. Canara Bank RFC Deposit Scheme
- Minimum Deposit: USD 1000 or equivalent
- Maximum Deposit: No ceiling
- Tenure: 1 month to 3 years
- Interest Rate: 0.05% to 5.25%
- Eligibility Criteria: Non-resident Indians
How to Invest in Canara Bank Fixed Deposit?
Here are the steps that you can follow to open a Canara Bank FD account:
- Step 1: Log in to Canara Bank netbanking with your credentials
- Step 2: Go to the term deposit opening window and select the ‘New Account’ option to open a fresh term deposit
- Step 3: From the dropdown menu, choose the ‘Deposit Product’
- Step 4: Choose other details such as the type of deposit, amount of investment and tenure range
- Step 5: Choose the interest pay plan, which is the frequency at which interest should be paid
- Step 6: Select the mode of interest payment
- Step 7: Go to ‘Account Transfer’ and ‘Add to Principal’ to do so
- Step 8: Choose the account to which interest should be paid. Key in the account number
- Step 9: Go to ‘Principal Instructions’ and choose how and where the money should be credited upon maturity
- Step 10: After filling in all details, verify and click on ‘Open Deposit’
- Step 11: Click ‘Confirm’. An account opening confirmation message will be displayed on the screen
Documents Required to Open Canara Bank FD
In order to open a Canara Bank FD account, you will need the following list of documents:
- Bank’s prescribed application form
- Proof of Identity: PAN card, voter ID, Aadhaar card, passport or driving licence or any other document as per KYC norms
- Proof of Address: Aadhaar card, voter ID, passport or bank statement or any other document as per KYC norms
- Form 60 or 61 (in case you do not have a PAN card)
- Photograph of depositor or depositors (2 copies)
- Any other document as applicable to proprietorship, company, HUF, partnership firm, etc.
Eligibility to Open Canara Bank FD
Here are the types of entities who are eligible to open a Canara Bank FD:
- An individual (Indian resident or NRI)
- Joint investors (not more than 4)
- A guardian on behalf of a minor
- Partnership Firm
- Hindu Undivided Families (HUFs)
- A company, association or any other institution
Taxation on Canara Bank FD
- According to the Income Tax Act of 1961, interest that you earn on fixed deposits is treated as ‘income from other sources’ and is, therefore, taxable. Interest which you earn on your fixed deposit is added to your gross annual income and is taxed as per your tax slab.
- In case you earn more than ₹40,000 as interest from your FD in a fiscal year, 10% of it will be deducted as TDS if PAN card details have been provided to the bank, else it will be taxed at 20%.
- For senior citizens, the TDS deduction limit is ₹50,000 in a fiscal year.
- If you are eligible for tax exemptions, you need to submit forms 15H or 15G, whichever is applicable to your age and income. You need to specifically provide instructions to the bank for not deducting TDS.
In case you want to avoid paying on fixed deposit returns, you can opt for Canara Tax Saver Scheme. This scheme has a lock-in period of 5 years, and you can claim a tax deduction of up to ₹1.5 lakh by investing in it.
Loan Against Canara Bank FD Scheme
In case you already have a Canara Bank FD account, you can utilise it to take a loan if you are in urgent need of cash and do not want to opt for a personal loan. At present, you can take 90% of the value of your fixed deposit as a loan.
The interest rate is comparatively lower than what is charged in case of personal loans. The greatest advantage of opting for a loan on your FD is that you don’t have to go through the hassles of arranging for collateral, as is the case with personal loans. Additionally, you do not have to withdraw from your fixed deposit account prematurely.
Final Word
Before deciding to park your money in any Canara Bank FD account, it is better to analyse their returns as well as go through the fine print. In case you are a senior citizen, make sure to check the rate of interest that is being offered to you, which is higher than normal FD rates. You should also keep in mind that if you withdraw money before maturity, you will have to bear a penalty of 1.00%.
If you’re looking to invest in tax-saving schemes, you can consider investing in Nifty 50 ELSS tax-saving schemes with Navi Mutual Fund. ELSS investments could help you save up to ₹46,800 on your tax outgo while giving you the opportunity to invest in the top 50 companies of India listed on the National Stock Exchange (based on market cap).
FAQs
Yes, a nomination facility is available for this scheme. However, no nomination is acceptable in case the account has been opened on behalf of a minor or if the account belongs to a firm, HUF, company or association or body of persons.
At the time of opening a new Ashraya Deposit Scheme account, you need to submit a certified copy of any of the documents mentioned below for age proof:
– Voter ID
– Passport
– Pension Payment Order
– Birth Certificate issued by any competent authority
– LIC Policy
– Secondary school leaving certificate with date of birth
If you wish to close your NND account within 12 months of opening it, 3% of the account’s balance will be deducted as a penalty.
Yes, you can opt for a loan against your NND account in Canara Bank. With this, you can avail up to 75% of the value of your fixed deposit account.
For general Canara Bank FD schemes, there are no tax benefits. However, for tax-saver FD schemes, you can claim tax benefits of up to ₹1.5 lakh under Section 80C of the I-T Act. However, the Canara Bank tax-saver FD scheme comes with a lock-in period of 5 years.
To open an FD account with Canara Bank, you need to deposit a minimum of ₹1,000. There’s no upper limit for maximum amount.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
