Canara Fixed Deposit Rate
Canara Bank Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) is one of the most popular ways of investing money for conservative investors. Investing in an FD account is risk-free and gives an assured return. It is a popular mode of investment with the general populace in India.
A fixed deposit account is a term deposit account, which gives you a fixed amount of interest for a certain principal amount deposited for a fixed period of time. Though advantageous in many ways, FDs comes with an issue of liquidity. You won’t be allowed to withdraw that money before maturity, except on the payment of a penalty.
Money can be deposited in an FD account for a time period that typically ranges from 7 days to as long as 10 years. You can choose the tenure for as per your convenience, according to your investment plans. Once the term deposit matures, the bank transfers the principal amount along with the interest earned to the account specified by you at the time of FD account opening. Banks also give you the option of periodic interest payouts – monthly, quarterly, half-yearly and annually.
Opening a fixed deposit is one of the simplest ways of earning interest if you have some idle money. FDs are low-risk instruments of saving that yield a higher interest amount than a regular savings account.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Canara Bank Deposit Rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest, though a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. Canara Bank Interest Rates typically range from 5% - 9% per annum.
Canara Bank FD rates
Following is an overview of Canara Bank Term Deposit Rates and Canara Bank Short-Term Fixed Deposit Interest Rates.
Canara Bank Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Canara Bank directly.)
|Term Deposits (All Maturities)||
|Rate of Interest (% p.a)||Annualized Interest yield|
|7 days to 14 days||5.25||5.25|
|15 days to 30 days||5.25||5.25|
|31 days to 45 days||5.50||5.50|
|46 days to 60 days||6.50||6.50|
|61 days to 90 days||6.50||6.50|
|91 days to 179 days||6.50||6.50|
|180 days to 269 days||7.00||7.06|
|270 days to less than 1 year||7.15||7.27|
|1 year only||7.15||7.34|
|Above 1 year to less than 2 years||7.50||7.71|
|2 years & above to less than 3 years||7.40||7.90|
|3 years & above to less than 5 years||7.40||8.20|
|5 years & above to less than 8 years||7.00||8.30|
|8 years & above to 10 years||7.00||9.28|
Canara Bank FD Interest Rates for Senior Citizens
Canara Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates applicable on a regular FD. It provides seniors with that extra buffer in their golden years. Senior citizens are entitled to get an extra 0.50% interest rate across all maturities. Following is an overview.
|Term Deposits (All Maturities)||Rate of Interest (% p.a)||Annualized Interest yield|
|7 days to 14 days||5.75||5.75|
|15 days to 30 days||5.75||5.75|
|31 days to 45 days||6.00||6.00|
|46 days to 60 days||7.00||7.00|
|61 days to 90 days||7.00||7.00|
|91 days to 179 days||7.00||7.00|
|180 days to 269 days||7.50||7.50|
|270 days to less than 1 year||7.65||7.65|
|1 year only||7.65||7.87|
|Above 1 year to less than 2 years||8.00||8.24|
|2 years & above to less than 3 years||7.90||8.47|
|3 years & above to less than 5 years||7.90||8.82|
|5 years & above to less than 8 years||7.50||9.00|
|8 years & above to 10 years||7.50||10.15|
How to Calculate Canara Bank Fixed Deposit Interest
There are several online websites that have easy-to-use FD calculators that allow you to instantly calculate the interest earned. You can use the online FD calculator as many times as you want, using various combinations. This will help you arrive at your final deposit amount and help decide how much you want to invest and for what period.
You can also compute the interest earned on a certain principal amount using the following formula:
Calculate Canara Bank FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Canara Bank FD Premature Withdrawal Penalty
While investing in an FD account, it is important to take into consideration potential emergency situations where you might be in urgent need of funds. Once you deposit an amount into the FD, you cannot withdraw from it, unlike with a savings account. However, you will be allowed to break the deposit upon payment of a penalty. Canara Bank typically charges a nominal penalty for premature withdrawal which is communicated to you at the time of application of FD Deposit.
Canara Bank FD – FAQS
For how long can I book an FD with Canara Bank?
Deposits can be made for period that ranges from 15 days (only for single deposit of Rs.5 lakhs and above) to 120 months.
Is tax deducted for FD deposits?
Yes, if the interest accrued reaches a particular slab in the financial year, then TDS is deducted.
What is the eligibility for opening an FD account with Canara Bank?
An Individual, jointly with others -- not more than 4, a Guardian on behalf of a minor, HUF, Partnership, a Company, Association or any other Institution are eligible to open an FD account with Canara.
What is the minimum and maximum amount that can be invested?
The minimum amount is Rs.1000. There is no cap on the maximum amount.