This Government Bank Is First Bank To Offer 7.5% Interest Rate On Fixed Deposits

Leading public sector lender Canara Bank recently increased the interest rate on fixed deposits below Rs. 2 crore. According to the bank's official website, the hiked interest rate on FD is effective from October 7, 2022. On select tenors, Canara Bank increased the interest rate on fixed deposits by up to 135 basis points.

The increase in interest rate is an aftereffect of the Reserve Bank of India's recent 4th consecutive Repo Rate hike. The repo rate has gone up by 190 basis points since May. In September, the RBI hiked the repo rate by 50bops. After the recent hike, the current repo rate is 5.9 per cent.

Canara Bank FD Interest Rates

The Bank now offers an interest rate on deposits maturing in 7 days to 10 years that ranges from 3.25 per cent to 7 per cent for the general public and 3.25 per cent to 7.50 per cent for senior citizens. The bank has increased its interest rates for all tenors.

The interest rate on fixed deposits maturing in 7 days to 45 days is increased by the bank from 2.90 per cent to 3.25 per cent. The bank increased the interest rate from 4% to 4.25% on deposits with maturities of 46 days to 90 days. Now, fixed deposits with maturities between 91 and 179 days will pay 4.50 per cent interest.

The interest rate for terms of 180 to 269 days was raised by the bank to 5.90 per cent for the general public and 6.40 per cent for senior citizens. The Bank raised the interest rate on fixed-rate deposits from 4.65 per cent to 6 percent for the general public and 6.50 per cent for senior citizens for maturities of 270 days to less than 1 year.

On maturity of 1 year, the bank after the hike is providing 6.50 per cent to the general public and 7 per cent to senior citizens, respectively. For the 666-day maturity period, the bank after the hike now offers 7 per cent to the general public and 7.50 per cent to senior citizens, which is the highest by the bank.

The bank will now charge 6.50 per cent interest for the general public and 7 per cent for senior citizens for terms of 2 to 5 years following the rise. For a maturity period of 5 years and up to 10 years, the bank will offer 7 per cent to the general public and 7.50 per cent to senior citizens.

Interest rates On FD (Domestic Deposits) Below 2 Cr w.e.f 07.10.2022

Tenor	General Public Interest (% p.a.)	Senior Citizen Interest (% p.a.)
7 days to 45 days	3.25	3.25
46 days to 90 days	4.25	4.25
91 days to 179 days	4.5	4.5
180 days to 269 days	5.9	6.4
270 days to less than 1 Year	6	6.5
1 year only	6.5	7
Above 1 year to less than 2 years	6.5	7
666 Days	7	7.5
2 years & above to less than 3 years	6.5	7
3 years & above to less than 5 years	6.5	7
5 years & above to 10 Years	7	7.5

Source- Canarabank.com

According to the bank's official website, the senior citizens will receive an additional 0.50 per cent interest on deposits (other than NRO/NRE and CGA Deposits) with a tenor of 180 days and above on deposits below Rs. 2 crore. Also, the Bank is giving 7.00 per cent p.a. to the general public and 7.50 per cent to senior citizens for the Canara Tax Saver Deposit account. Additionally, recurring deposits are also subject to the interest rate specified above.