Canara Bank, founded in Mangalore in 1906, ranks among India's major nationalized banks, headquartered in Bengaluru, Karnataka. The bank offers diverse fixed deposit schemes enabling customers to allocate their savings securely for a fixed duration. During account setup, a fixed amount is deposited with no further additions or withdrawals allowed during the term. Fixed deposits at Canara Bank generally yield higher returns than savings accounts.

Key Features and Advantages of Canara Bank Fixed Deposits

• FD Tenure: Ranges from 7 days to 10 years.
• Senior Citizen Benefit: Additional interest of 0.50% per annum over regular rates.
• Minimum Deposit: Rs. 1000 required to open an FD account.
• Nomination Facility: Available for all FD accounts.
• Loan/Overdraft Options: Up to 90% of the deposit amount as a loan or overdraft.
• Interest Payout: Paid upon the maturity of the deposit.
• FD Schemes: Schemes like Canara Khazana Deposit and Canara Shikhar Deposit with competitive rates.
• Eligibility: Resident Indians, HUFs, companies, trusts, and partnership firms can open FDs.

These features make Canara Bank a favorable choice for maximizing savings through fixed deposits.

Canara Bank FD Interest Rates 2024

Types of Canara Bank FD Schemes

Fixed Deposit Scheme:

• Joint Accounts: Permitted.
• Automatic Renewal: Available.
• Maturity Period: 7 days to 10 years.
• Interest Rates: General public: 4.00% p.a. to 6.70% p.a.; Seniors: 4.00% p.a. to 7.20% p.a.
• Loan Options: Up to 90% of FD value.
• Partial Withdrawals: Allowed in multiples of Rs.1,000.
• Overdue Deposits: Savings account rates apply.
• Taxation: Subject to TDS.

Kamadhenu Deposit (Re-investment Plan):

• Minimum Deposit: Rs.1,000.
• Duration: 5 months to 10 years.
• Interest Rates: Annual rates from 4.00% p.a. to 5.50% p.a., compounded quarterly.
• Interest Payment: At maturity.
• Partial Withdrawals: In multiples of Rs.1,000.
• Senior Benefits: Extra 0.50% above standard rates.
• Loan Options: Up to 90% of deposit amount.

Canara Tax Saver Scheme:

• Tenure: 5 years.
• Interest Rate: 5.50% p.a. for the general public.
• Interest Payout: Monthly/Quarterly.
• Minimum Investment: Rs.100.
• Loan Availability: No loans against Tax Saver FD.
• Withdrawals: No premature closure.
• Nomination: Available except for minors.
• Tax Benefits: Up to Rs.1.50 lakh under Section 80C.

Ashraya Deposit Scheme for Senior Citizens:

• Eligibility: For individuals aged 60 and above.
• Loan Options: Up to 90% of the FD amount.
• Interest Benefits: 0.50% higher rate on all domestic FDs.
• Interest Payment: Frequency varies with deposit type.
• Taxation: Interest income subject to TDS.

These schemes cater to varied financial needs, from tax benefits to higher returns for seniors.

How to Open a Fixed Deposit Account with Canara Bank

Opening a fixed deposit account with Canara Bank can be done through internet banking, the mobile app, or visiting a branch.

Internet Banking:

1. Step 1: Log into NetBanking.
2. Step 2: Navigate to Term Deposit, click ‘New Account’.
3. Step 3: Enter details including nominee information and maturity instructions.
4. Step 4: Click on ‘Open Deposit’, confirm and authenticate.

Mobile App - Canara Bank App:

1. Step 1: Download and login.
2. Step 2: Select ‘New Account’, choose deposit type.
3. Step 3: Complete required fields.
4. Step 4: Confirm details and authenticate.

Offline at a Branch:

1. Step 1: Visit nearest branch.
2. Step 2: Fill application, submit documents and deposit.
3. Step 3: Receive FD receipt upon processing.

These options ensure flexibility for starting an FD with Canara Bank.

Qualifications for Opening a Fixed Deposit Account at Canara Bank

Eligible for Canara Bank FDs:

• Resident individuals and NRIs.
• Minors with a guardian.
• HUF members.
• Companies, organizations, and institutions.

Necessary Documents to Open a Fixed Deposit Account

Required documents include:

Proof of Address:

• Bank statement with a cheque
• Electricity bill
• Telephone bill
• Passport
• ID issued by Post Office

Proof of Identity:

• Driving license
• PAN card
• Voter ID
• Passport
• Photo ration card

Documents verify identity and residence for FD setup at Canara Bank.

Early Withdrawal of Canara Bank Fixed Deposit

Canara Bank allows early withdrawal of FDs except for tax-saving deposits, with a 1% penalty. This penalty is subject to Canara Bank's terms.