Canara Bank Fixed Deposit (FD) Rates

Updated on: Jan 2nd, 2023


7 min read

Canara Bank offers a few fixed deposit (FD) schemes that allow the retail customers to deposit lump sum savings in the account and rest assured that the money is earning a competitive interest rate over the specified tenure. The tenure of an FD account can range from 7 days up to 10 years based on your requirement. Senior citizens may get an additional interest rate based on the tenure chosen.

Here is all that you should know about Canara Bank FD schemes.

Latest Update

RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.

It has been proposed to exempt senior citizens from filing income tax returns if pension income and interest income are their only annual income source. Section 194P has been newly inserted to enforce the banks to deduct tax on senior citizens more than 75 years of age who have a pension and interest income from the bank.

Fixed Deposit Interest Rates 2022 of Canara Bank

Deposit TenureInterest Rate for Regular Customers (% p.a.)*Annualised Yield for Regular Customers (% p.a.)*Interest Rate for Senior Citizens (% p.a.)*Annualised Yield for Senior Citizens (% p.a.)*
7 days up to 45 days2.92.982.92.98
46 days up to 90 days3.93.963.93.96
91 days up to 179 days3.954.063.954.06
180 days up to less than 1 year4.44.524.95.04
1 year5.15.305.65.82
Above 1 year up to 2 years5.15.305.605.82
2 years up to 3 years5.15.515.606.03
3 years up to 5 years5.255.615.756.14
5 years up to 10 years5.255.615.756.14

*Interest rates are subject to change from time to time.

Different Types of Canara Bank FD Schemes

  1. Kamadhenu Deposit (Re-investment Plan)

    This scheme allows you to make a minimum deposit of Rs.1,000 with no maximum limits. The minimum period for the account is 5 months and can go up to 120 months. Get attractive interest rates on the deposit as per the prevailing policy. The accrued interest will be paid out on maturity.

  2. Fixed Deposit

    This is the regular FD scheme where the minimum deposit amount is Rs.1,000, and there is no ceiling value specified. The interest will be paid out monthly, quarterly, half-yearly, or annually based on the depositor’s choice.

  3. Ashraya Deposit Scheme

    This scheme is dedicated to senior citizens where both Domestic Fixed Deposit account and Kamadhenu Deposit accounts are eligible for the scheme’s benefits. Individuals can open the account singly or jointly.

Canara Bank FD Special Features and Benefits

  • Minimum deposit tenure is seven days.
  • Minimum deposit amount is Rs.1,000.
  • Get attractive interest rates based on the prevailing bank policy.
  • Senior citizens that are resident individuals will get an additional interest rate of 0.5%.
  • Nomination facility is available.
  • Loan facility is offered up to 90% of the deposit amount.
  • Premature withdrawal is allowed subject to certain conditions.

Basic Eligibility Criteria for Canara Bank FD

  • Individuals
  • Two or more individuals to form a joint account (not more than 4)
  • Guardian on behalf of a minor
  • Hindu Undivided Families (HUFs)
  • Partnership, Company, Association or any other Institution

Tax Benefits on Canara Bank Fixed Deposit

Canara Tax Saver Scheme

This is a scheme offered under the Fixed Deposit and Kamadhenu Deposit schemes. The account is suitable for salaried employees, businessmen, and professionals. Individuals and HUFs are eligible for opening this account. The minimum deposit is Rs.100, and the maximum is Rs.1.5 lakh. The tenure is five years. Get income tax deduction up to Rs.1.5 lakh on depositing money in this account under Section 80C of the Income Tax Act, 1961.

FD Interest Rate Calculator

Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.

Frequently Asked Questions

Can I open a joint account with a person aged below 60 years for Ashraya Deposit Scheme?

In joint accounts for Ashraya Deposit Scheme, a senior citizen can open with another senior citizen or with another person aged below 60 years. When you open the account in the latter case, the senior citizen must be the first account holder.

Is the minimum tenure seven days for all schemes?

No. In fixed deposit schemes, the minimum deposit tenure of seven days applies only to Rs.5 lakh deposits and above. For deposits less than Rs.5 lakh, the minimum deposit period is 15 days. When it comes to Kamadhenu Deposit scheme, the minimum deposit tenure is five months. In contrast, the Canara Tax Scheme has a tenure of five years.

Is there a criterion for senior citizens to get the additional interest rate?

Being a senior citizen, you can get the additional rate of 0.5% only on domestic term deposits of less than Rs.2 crore with a tenure of 180 days and above.

What is the penalty applicable to premature withdrawal?

A penalty of 1.00% will be levied for premature withdrawal of domestic/NRO term deposits of less than Rs.2 crore that are accepted/renewed on or after 12 March 2019. Such accounts will earn 1.00% less interest rate as applicable for the relevant amount slab as on the date of opening the account, and as applicable to the period the deposit stayed in the bank account.

Related Articles

Bank of India FD Interest Rates

Indian Bank FD Interest Rates

Post Office FD Interest Rates

Axis Bank FD Interest Rates

inline CTA
Invest in Direct Mutual Funds
Save taxes upto Rs 46,800, 0% commission

Public Discussion

Get involved!

Share your thoughts!


Quick Summary

Canara Bank provides various fixed deposit schemes with competitive interest rates for retail customers, including additional rates for senior citizens. New RBI rules on unclaimed, matured FD accounts and tax exemptions for senior citizens. Different types of FD schemes available with unique features like Kamadhenu Deposit, minimum deposit of Rs.1,000, and loan facilities. Tax-saving benefits under Canara Tax Saver Scheme. Use the FD calculator to estimate returns. Basic eligibility criteria, frequently asked questions, and related articles provided.

Was this summary helpful?

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use


ISO 27001

Data Center


SSL Certified Site

128-bit encryption