Canara Bank Revises FD Rates, Get As High As 7.25% Return On This Tenure

The public sector lender Canara Bank has revised its interest rates on fixed deposits (FD) on less than Rs 2 Cr. Following the Reserve Bank of India's (RBI) decision to hold the repo rate at its third bimonthly monetary policy committee (MPC) meeting of FY24, the bank made this announcement. After the adjustment, Canara Bank is now giving a maximum return of 7.75% for elderly persons and 7.25% for the general public on a 444-day tenure.

Canara Bank FD Rates

The bank is giving an interest rate of 4.00% on fixed deposits that mature within the next 7 days to 45 days, while Canara Bank is offering an interest rate of 5.25% on deposits maturing in the next 46 days to 90 days. On deposits with a tenor of 91 days to 179 days, Canara Bank is giving an interest rate of 5.50%, and on deposits with a tenor of 180 days to 269 days, 6.25%. Deposits that mature in 270 days to less than a year earn interest at a rate of 6.50%, while those that mature in a year earn interest at a rate of 6.90%.

The bank is paying an interest rate of 7.25% on fixed deposits that mature in 444 days, and Canara Bank is promising an interest rate of 6.90% on deposits that mature in 1 year or more but less than 2 years. Deposits with maturities between 2 and 3 years will earn interest at a rate of 6.85%, while those with maturities between 3 and 5 years will earn interest at a rate of 6.80%. Currently, Canara Bank is providing a 6.70% interest rate on deposits due in 5 years or longer up to 10 years.

For domestic deposits under Rs. 2 Cr. and with a tenor of at least 180 days, Canara Bank would continue to provide senior citizens with an additional interest rate of 0.50%. On behalf of additional interest rate benefit for super senior citizens, Canara Bank has mentioned on its website that "Additional rate of interest 0.60% for Super Senior Citizen(80 years and above) is introduced under Canara-444 product only i.e. 7.85% for callable deposits and 8% for non callable deposits."

For its Canara Tax Saver Deposit programme (open to the general public), Canara Bank offers 6.70% p.a. and 7.20% for elderly individuals. The maximum amount that you may deposit is Rs. 1.50 lakh. The interest rate shown above also applies to recurring deposits.

Premature closure, partial withdrawal, or extension of domestic or NRO term deposits under Rs. 2 crore would incur a penalty of 1.00%. According to the website of Canara Bank, "Such prematurely closed/part withdrawn/prematurely extended deposits will earn interest at 1.00% below the rate as applicable for the relevant amount slab as ruling on the date of deposit and as applicable for the period run OR 1.00% below the rate at which the deposit has been accepted, whichever is lower." However, no interest will be payable on term deposits prematurely closed/prematurely extended before completion of 7th day."