Investing in a fixed deposit scheme is a very popular saving option as it is not dependent on market fluctuations and you get steady returns on your deposit based on the scheme chosen. In a fixed deposit scheme you can invest money for a stated period of time after which a fixed rate has to be paid until the end of deposit term. Canara bank’s fixed deposit options offer a great variety in terms of interest rates and deposit periods.
Canara Bank Fixed deposit interest rates
|Tenure||FD Rates||Senior Citizen FD Rates|
|7 days to 14 days||4.20%||4.70%|
|15 days to 30 days||4.20%||4.70%|
|31 days to 45 days||4.50%||5.00%|
|46 days to 60 days||4.75%||5.25%|
|61 days to 90 days||4.75%||5.25%|
|91 days to 120 days||5.50%||6.00%|
|121 days to 179 days||5.75%||6.25%|
|180 days to 364 days||6.35%||6.85%|
|1 year 1 day to 1 year 364 days||6.30%||6.80%|
|2 years to 4 years 364 days||6.20%||6.70%|
|5 years to 10 years||6.00%||6.50%|
Canara Bank FD: Special features
- Nomination facility is available to any family member or spouse can be nominated to receive the final amount
- Canara bank FD options allow you to invest from Rs 1000 onwards but there is no upper limit to amount deposit.
- Customers can avail loan facility up to 90% of the FD amount.
- Competitive interest rates are offered against all FD schemes
- Easy and fast liquidity options are available.
- NRE NRO and FCNR deposit facility is available.
- FD account can be opened online or by visiting your nearest Canara bank branch. Online FD account opening facility is available as well.
Canara Bank FD: Is it the best way to save?
Investing in a balanced mix of safe and risky investment options is considered as a good investment strategy. While fixed deposits offer security they might not be ideal wealth creation investment instruments. Mutual funds, on the other hand, can help you achieve your financial goals to some extent.The advantage of investing in mutual funds over fixed deposits primarily is that they are managed by professional fund managers who have experience in predicting market trends and make sure your money is invested in the right way. This mitigates the risk that mutual funds come with to a large extent. There is less liquidity in the case of fixed deposits till the deposit tenure is over, on the other hand, mutual funds over higher liquidity in case the lock-in period has been crossed. In a positive market, you can get returns as high as 2 times as compared to fixed deposits which have fixed income rate for a deposit tenure. Hence if wealth creation is your goal and you have a moderate risk-taking appetite, investing in mutual funds can prove to be very fruitful.
Canara Bank FD: Eligibility Criteria
The following groups and individuals are eligible to open an FD account with Canara Bank
- Joint accounts for 2 or more individuals
- Partnership firms
- Blind persons
- Illiterate persons
- Joint Hindu families
- Limited companies and partnership firms
- Municipalities and panchayats
- Charitable, religious, and educational institutions
- Associations, societies, clubs etc.
- Sole proprietary concerns
Canara Bank: Premature Withdrawal
As per latest bank rules, a penalty of 1.00% will be applicable for premature withdrawal of deposits or closure of account for a deposit amount of less than 1 crore rupees that are renewed on or after 04.02.2011. However, no penalty will be applied to accounts renewed on or before 13.10.2012. No penalty would be levied if deposits are withdrawn within 7 days.
Tax benefits on Canara bank fixed deposit
Canara bank offers a tax saving option under the “ Fixed Deposit and Kamadhenu deposit”streams with a minimum lock-in period of 5 years. Individuals, minors, and HUFs are eligible for this.Minimum deposit starts from multiples of Rs 100 and the maximum limit is 1,50,000 You can go for this fixed deposit scheme to avail tax benefits under section 80C of the Income Tax Act,1961.
However it is important to note here that in case of fixed deposits, tax levied is dependent on the tax bracket you fall into, irrespective of FD tenure. If the interest earned on your fixed deposit is more than Rs. 10,000, TDS deduction of 10% would be deducted by the bank. TDS certificate will be provided by the bank upon deduction.
Mutual funds have an edge over fixed deposit in this regards as tax payable on mutual funds depends on the category. For example, returns on equity funds like Equity Linked Savings Scheme (ELSS) are tax-free and upto 1.5 lakh can be claimed under section 80C of the Income Tax Act,1961.(are tax exempt. Also, long-term capital gains on equity mutual fund units held for more than 12 months are tax exempt. They offer a higher capital appreciation potential and a smaller lock-in period of 3 years. Hence we can say investing in Mutual funds is viable tax saving option
Documents required to open Canara bank FD account
1. Identity proof
- PAN card
- Voter ID card
- Driving license
- Government ID card
- Photo ration card
- Senior citizen ID card
2. Address proof
- Telephone bill
- Electricity bill
- Bank Statement with Cheque
- Certificate/ ID card issued by Post office
Types of Fixed Deposit offered by Canara Bank
- Fixed/Short Term Deposit– A standard FD scheme offered by Canara bank wherein customers are paid fixed interest amounts at regular intervals.
- Quarterly/Monthly Term Deposit– In this scheme, customers can choose to receive interest payments at monthly or quarterly intervals
- You can also choose to receive payment upon maturity of account.