About Canara Bank Fixed Deposits
Canara Bank is a public sector bank that offers fixed deposit schemes to individual depositors, non-individual entities and, in most cases, non-resident Indians, across a range of tenures designed to suit different savings horizons. As with fixed deposits at any bank, the interest rate you are offered depends on the tenure you choose and the amount you deposit, with Canara Bank typically offering a slightly higher interest rate to senior citizen depositors compared with the general rate. Many banks, Canara Bank included, periodically revise their FD interest rates in response to changes in the broader interest rate environment and their own funding requirements, so it is worth checking the latest rates before booking a deposit rather than relying on rates you may have seen previously.
Canara Bank FD Interest Rates
The comparison table on this page lists the latest Canara Bank FD interest rates across different tenure buckets, ranging from very short-term deposits of a few days or weeks to long-term deposits of five years or more, along with the deposit amount slab each rate applies to. Canara Bank, like most banks, offers a preferential interest rate to senior citizens that is typically higher than the general rate for the same tenure, so it is worth checking the senior citizen column separately if you or the depositor qualify. Since Canara Bank's FD rates can change from time to time based on the bank's own funding needs and broader interest rate conditions, it's a good idea to check the current rate for your specific tenure and deposit amount at the time you are ready to invest, rather than assuming rates will remain unchanged.
How to Open a Fixed Deposit with Canara Bank
If you already hold a savings or current account with Canara Bank, you can typically open a fixed deposit instantly through the bank's net banking portal or mobile banking app by selecting the FD or term deposit option, choosing your desired tenure and deposit amount, and confirming the transfer of funds from your linked account.
If you do not yet have an account with Canara Bank, most banks allow new customers to open an FD by visiting a branch with basic KYC documents such as a PAN card, Aadhaar and a passport-sized photograph, and in many cases Canara Bank also allows eligible new customers to open an FD online after completing a video KYC or similar digital verification process, without needing to visit a branch in person.
Premature Withdrawal and Loan Against Canara Bank FD
Most Canara Bank fixed deposits allow premature withdrawal before the completion of the chosen tenure, though this typically comes with a penalty in the form of a reduced interest rate compared with the rate that would have applied to the original tenure, and the exact penalty structure can vary depending on how much of the tenure has been completed. As an alternative to breaking the deposit early, Canara Bank also typically allows depositors to take a loan or overdraft against their fixed deposit, usually up to a specified percentage of the deposit amount, which lets you access funds for a short-term need while keeping your original FD intact and continuing to earn interest on it.
Tax on Canara Bank Fixed Deposit Interest
Interest earned on a Canara Bank fixed deposit is fully taxable as per your applicable income tax slab, and like other banks, Canara Bank is required to deduct Tax Deducted at Source (TDS) once the total interest earned across your FDs with the bank in a financial year crosses the threshold specified under the Income Tax Act, with a higher threshold generally applicable for senior citizens. If your total income is below the taxable limit or you otherwise do not expect to owe tax on your FD interest, you can submit Form 15G, or Form 15H if you are a senior citizen, to Canara Bank to request that TDS not be deducted, provided you meet the eligibility criteria for these forms, and any excess TDS already deducted can be claimed back when filing your income tax return.
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