Canara Bank Savings Account: Interest Rate & Minimum Balance 2025

As of June 1, 2025, Canara Bank has officially converted all its savings accounts into zero-balance accounts. This means customers would no longer need to maintain a minimum balance to avoid penalties, making banking easier for everyone. 

Canara Bank made all savings accounts zero-balance, getting rid of the difficulties that come with minimum balance requirements. With interest rates ranging from 2.90% to 4.00% per annum, they offer flexible, secure savings options tailored for every kind of saver. Keep reading this article to know more about Canara Bank’s savings account interest rates and the different savings account schemes designed to fit your financial needs.

Canara Bank Savings Account Interest Rate

To know the Canara Bank savings account interest rate, go through the table provided below:

New Rule for Canara Bank Savings Account

As of June 1st 2025, Canara Bank has removed the minimum balance requirement across all savings accounts. Previously, customers had to maintain an average monthly balance of ₹2,000 in urban areas, ₹1,000 in semi-urban areas, and ₹500 in rural areas, with penalties for non-compliance.

These charges have now been withdrawn, aiming to improve access to banking, boost customer retention, and encourage investments in long-term products like fixed and recurring deposits. It will benefit students, senior citizens, low-income individuals, and those who prefer to maintain low or zero balances.

Canara Bank Savings Account Interest Rate for Senior Citizens

Canara Bank savings account interest rate for senior citizens is the same as for the general public. It varies from 2.90% to 4% p.a., depending on the account balance, as shown in the table above. 

Different Types of Canara Bank Savings Account 

Canara Bank offers a diverse array of savings accounts catering to various customer needs. These accounts provide a range of features and benefits, contributing to the bank's reputation as a leader in the financial sector. 

Canara Bank Savings Account Minimum Balance

If you are keen to know the minimum balance you need to maintain for your Canara Bank Savings account, check the table below.

Canara Bank Savings Account Maximum Balance

There is no maximum balance limit that you need to maintain in an Canara Bank savings account. However, investors must remain aware of the deposit limits and ensure all the account activities are aligned with Income Tax regulations.

Penalty for not Maintaining Minimum Balance in Canara Bank Savings Account 

As of June 1, 2025, Canara Bank has removed the minimum balance requirement across all its savings accounts. This means there is no penalty for non-maintenance of minimum balance. 

Canara Bank Savings Account Charges 

There are a few account charges that are levied upon you when you open a Canara Bank savings bank account. The charges to look for are as follows:

Canara Bank Savings Account Cash Transaction Limit

In case you want to know the transaction limit for your Canara Bank savings account, check the below table.

How to Open a Savings Account in Canara Bank Online?

Any resident Indian can access the official Canara Bank website to open a savings account and enjoy the Canara Bank savings account interest rate. The easy steps to follow are:

Step 1: Visit the nearest Canara Bank branch. 

Step 2: Obtain the Savings Bank account opening form.

Step 3: Fill out the form and submit it to the bank officials along with the documents required for verification.

Step 4: Deposit the minimum balance amount to complete the account opening process.

Step 5: Your savings account will be successfully opened.

Documents Required for Opening Savings Account in Canara Bank

To open a savings account with Canara Bank, applicants must provide copies of the following documents:

• Proof of Identity:
  • Copy of PAN Card/Form 60 or 61 (Applicable if the customer does not possess a PAN Card)
• Photographs of the customer
• KYC Documents:
  • Passport
  • Driving License
  • PAN card
  • Voter Identity card 
  • NREGA Job card, duly signed by a State Government officer
  • Unique Identification Authority of India (UIDAI) letter, which contains details of name, address, and Aadhaar number

How to Close a Canara Bank Savings Account?

If you have decided to close your Canara Bank account, follow these steps for a smooth closure process:

Step 1: Obtain the Canara Bank Savings or Current Account Closure Form from any Canara Bank Branch.

Step 2: Fill out the form with accurate details, including the Account Holder’s Name, Mobile Number, Account Number, and your preference for receiving the Account Balance (Cash, Cheque/Draft, or Balance Transfer to another bank account).

Step 3: After providing the required information in the form, sign it.

Step 4: Collect all associated account items such as Debit cards, chequebooks, and passbooks.

Step 5: Collect a copy of your Identity Proof and Address Proof Document.

Step 6: Enclose the document copies and attach the bank products to the Account Closure Form. Submit this package at your home branch.

Step 7: Allow the bank some time to process the closure request and finalise the account closure.

Step 8: Receive your Account Balance according to the specified mode mentioned in the Canara Bank Account Closure Form.

Canara Bank Savings Account Features

Each Canara Bank Savings Account has its own unique features. Some of them are:

Canara Bank Savings Account Benefits

Here are some of the most important advantages and benefits of a Canara Bank Savings Account that you must be aware of while opening a savings bank account.

• Enjoy the convenience of an ATM/Debit card for seamless transactions.
• Keep track of your account activity with a Passbook or Pass Sheet.
• Access your account anytime, anywhere, with the flexibility of Mobile Banking and Net Banking services.
• Benefit from the instant crediting of outstation cheques up to ₹ 10,000.
• Facilitates the option of opening a joint account for shared financial management.
• Tailored accounts for both minors and senior citizens to meet their unique banking needs.
• Ensure a smooth transition of your account with the nomination facility in unforeseen circumstances.
• Avail the convenience of two free Demand Drafts for amounts equivalent to or above the minimum balance of ₹ 10,000, with a maximum issuance of ₹ 25,000.

One of the key factors that make Canara Bank's savings account interest rate attractive is the competitive interest rates offered, ranging from 2.90% to 4.00%. This ensures that account holders have a secure place for their funds and the opportunity to earn attractive returns on their savings. 

Other Related Articles:
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2. Bank Account Transfer Application
3. Axis Bank Savings Account Interest Rate
4. Punjab National Bank (PNB) Savings Account
5. Bank of Baroda (BOB) Savings Account
6. ICICI Bank Savings Account Interest Rate
7. Union Bank Savings Account Interest Rate
8. HDFC Bank Savings Account Interest Rate

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