Canara Bank was founded by Shri Ammembal Subba Rao Pai in July 1906 at Mangalore. Over the years, the bank has noted phenomenal growth, particularly after nationalization in the year 1969, attaining the status of a national level player for its geographical reach and client segments. In June 2006, the bank completed a century of operation in India’s banking sector. Today, it is regarded as one of the premier commercial banks in the country.
Canara bank offers a range of deposit products to meet varying client needs. Fixed deposits have been increasingly gaining popularity among the public, considering that it is a safe investment option compared to investments in stocks and mutual funds. Fixed deposits are accounts where money gets deposited for a fixed tenure, without fluctuating interest rates. Canara bank’s fixed deposit options offer a wide variety in terms of deposit periods and interest rates.
| TERM DEPOSITS | ||
|---|---|---|
| Domestic | Rate of Interest (%) p.a.. | |
| For Deposits less than Rs. 2 Crore w.e.f. 12.03.2019 | ||
| Term Deposits (All Maturities | General Public | |
| Rate of Interest (% p.a..) | Annualised Interest yield | |
| 7 days to 14 days * | 5.75 | 5.88 |
| 15 days to 30 days | 5.75 | 5.88 |
| 31 days to 45 days | 5.75 | 5.88 |
| 46 days to 60 days | 6.25 | 6.40 |
| 61 days to 90 days | 6.25 | 6.40 |
| 91 days to 120 days | 6.25 | 6.40 |
| 121 days to 179 days | 6.25 | 6.40 |
| 180 days to 269 days | 6.35 | 6.50 |
| 270 days to less than 1 year | 6.40 | 6.56 |
| 1 year only | 7.00 | 7.19 |
| Above 1 year to less than 2 years | 7.00 | 7.19 |
| 2 years & above to less than 3 years | 6.70 | 6.87 |
| 3 years & above to less than 5 years | 6.20 | 6.35 |
| 5 years & above to less than 8 years | 6.20 | 6.35 |
| 8 years & above to 10 years | 6.20 | 6.35 |
| 444 Days (Canara Shikhar Deposit) | 7.05 | 7.24 |
| 555 Days (Canara Shikhar Deposit) | 7.10 | 7.29 |
Source: Canara Bank Official Website
*Rates apply only for single deposit of Rs. 5 lakhs and above.
| Term Deposits (All Maturities) | Rate of Interest (% p.a.) | Annualised Interest yield |
|---|---|---|
| 7 days to 14 days | 6.25 | 6.40 |
| 15 days to 30 days | 6.25 | 6.40 |
| 31 days to 45 days | 6.25 | 6.40 |
| 46 days to 60 days | 6.75 | 6.92 |
| 61 days to 90 days | 6.75 | 6.92 |
| 91 days to 120 days | 6.75 | 6.92 |
| 121 days to 179 days | 6.75 | 6.92 |
| 180 days to 269 days | 6.85 | 7.03 |
| 270 days to less than 1 year | 6.90 | 7.08 |
| 1 year only | 7.50 | 7.71 |
| Above 1 year to less than 2 years | 7.50 | 7.71 |
| 2 years & above to less than 3 years | 7.20 | 7.40 |
| 3 years & above to less than 5 years | 6.70 | 6.87 |
| 5 years & above to less than 8 years | 6.70 | 6.87 |
| 8 years & above to 10 years | 6.70 | 6.87 |
| 444 Days (Canara Shikhar Deposit) | 7.55 | 7.77 |
| 555 Days (Canara Shikhar Deposit) | 7.60 | 7.82 |
Source: Canara Bank Official Website
*Rates apply only for single deposit of Rs. 5 lakhs and above.
Points to be noted
As listed above, Canara Bank offers an additional interest of 0.50% p.a. to deposits held by senior citizens for all maturity slabs.
Under the Canara Shikhar Deposit Scheme for General Public, the bank offers 7.05% p.a. and 7.10% p.a. for 444 days and 555 days, respectively.
The bank offers 6.20% p.a. for Canara Tax Saver Deposit scheme (General Public). The maximum deposit that is acceptable here Rs 1.50 lakhs.
Auto Renewal facility is not available for Capital Gains Accounts, Canara Tax Saver Deposits, Canara Samriddhi deposits and Non-callable deposits.
-Penalty: A 1.00% penalty shall be charged for part withdrawal, premature closure or premature extension of domestic/NRO term deposits of less than Rs. 2 crore that are accepted or renewed on or after 12.03.2019.
| Non Resident Accounts | ||
|---|---|---|
| a. NRO – all maturities | Same as applicable to Domestic Term Deposits | |
| b. NRE –Term deposits | Rate of interest (%) per annum | |
| Period of Deposit | Less than Rs.2 crore (w.e.f. 12.03.2019) | |
| Rate of Interest (% per annum) | Annualised Interest Yield | |
| 1 year only | 7.00 | 7.19 |
| Above 1 year to less than 2 years | 7.00 | 7.19 |
| 2 years & above to less than 3 years | 6.70 | 6.87 |
| 3 years & above to less than 5 years | 6.20 | 6.35 |
| 5 years & above to less than 8 years | 6.20 | 6.35 |
| 8 years & above to 10 years | 6.20 | 6.35 |
Source: Canara Bank Official Website
Points to be noted:
Interest shall not be payable for the period run on NRE term deposits that are prematurely closed or prematurely extended prior to the completion of one year from the date of the deposit.
Under Canara Shikhar Deposit Scheme (for deposits less than Rs. 2 crore), the bank offers 7.05% p.a. and 7.10% p.a. for periods of 444 days and 555 days, respectively.
NRE Term deposits get auto renewed only once considering that the Non-resident status is to be confirmed. The overdue deposit shall be paid interest at prevailing Savings Bank Rate for the overdue period.
Penalty: A 1.00% penalty shall be charged for premature closure or premature extension of NRE term deposits below Rs. 2 crores placed or renewed on or after 12.03.2019. There will be no penalty for premature closure or premature extension of NRE term deposits of Rs. 2 crores and above placed or renewed on or after 12.03.2019. However, a 1.00% penalty shall be levied in case of premature closure or premature extension of NRE term deposits of Rs.1 crore and above placed or renewed from 29.12.2011 to 12.10.2012.
| Interest rates on FCNR (B) Deposits w.e.f. 01.04.2019 to 30.04.2019 (Interest rate % per annum) | |||||
|---|---|---|---|---|---|
| CURRENCY OF DEPOSIT | 1 Year and above but less than 2 years | 2 years and above but less than 3 years | 3 years and above but less than 4 years | 4 years and above but less than 5 years | Five years only |
| USD | 3.33 | 3.16 | 3.18 | 3.15 | 3.16 |
| GBP | 1.37 | 1.47 | 1.51 | 1.55 | 1.59 |
| EUR | 0.28 | 0.30 | 0.38 | 0.44 | 0.54 |
| CAD | 2.72 | 2.39 | 2.35 | 2.35 | 2.38 |
| AUD | 2.12 | 2.03 | 2.02 | 2.19 | 2.25 |
Source: Canara Bank Official Website
Note: - The interest rates listed above are applicable for FCNR deposits of less than USD 1 million (or its equivalent in other currencies).
Entities who can open a fixed deposit account with Canara Bank are as follows:
Application in the banks’ prescribed form
PAN card copy or form 60 or 61 (if the customer does not have PAN card)
Photograph of depositor/s (2 copies)
ID and address proof copies
Other related documents as applicable to company, proprietor, partnership, HUF etc.
Fixed Deposit Interest Rates for other Banks:
What is the interest rate that Canara Bank Fixed Deposit offers on senior citizens FDs?
Canara Bank offers an additional interest of 0.50% p.a. on deposits held by senior citizens for all maturity slabs. In the event of the demise of the senior citizen before the maturity date, the deposit may be continued with the contracted interest rate, provided there is no change to the other contracted terms.
Can I make alterations to the tenure of my ongoing Canara Bank Fixed Deposit?
An individual cannot change the tenure of an already active fixed deposit account. However, he or she can close the existing fixed deposit account and open a new one with tenure of his or her choice.
How to open a Canara Bank Fixed Deposit account without a PAN card?
In case PAN is not available, an individual will have to make a declaration in Form 60.
What is the highest interest rate offered by the Canara Bank Fixed Deposit?
The highest interest rate offered by the Canara Bank Fixed Deposit is 7.10% on its Canara Shikhar Deposit of 555 days.
What are the FD tenure options with Canara Bank?
Canara Bank offers a range of tenure options to fixed deposit holders. The minimum period of deposit is 15 days (7-14 days – Only for single deposit of Rs. 5 lakh and above), while the maximum is 120 months.
What is the minimum amount required to start a Canara Bank Fixed Deposit account?
The minimum amount required to open a fixed deposit account with Canara Bank is Rs. 1,000.
What is the eligibility criteria to open a Canara Bank Fixed Deposit account?
Those who can open a fixed deposit account include individuals, a guardian on behalf of a minor, HUF, partnership, a company, an association or any other institution.
Can I open my Canara Bank Fixed Deposit without a PAN card?
While it is possible to open a fixed deposit account without a PAN card, there are certain implications to it. The TDS applicable will be recovered at 20% (as against 10% with PAN card). There will be no TDS credit from the Income Tax department, and no TDS certificate shall be issued (As per CBDT circular no: 03/11). Additionally, penal TDS will apply and Form 15G/H and other exemption certificates become invalid. It must be noted that no deposit for a sum equal to or more than Rs. 50,000 shall be booked if the PAN is not provided.
