Canara Bank is currently offering 3.25% to 7.10% interest on its Fixed Deposit (FD) schemes. With inflation stabilising, many experts believe the RBI may cut the repo rate again soon. If that happens, FD rates are likely to fall. Since the repo rate has already been reduced by 1% this year, banks have trimmed their FD returns as well.
So, if you’re planning to lock in your money at a higher rate, this is a good time to take a call. Let’s break down a Canara Bank FD option where depositing ₹2 lakh can earn you up to ₹79,500 in guaranteed interest.
Current FD Interest Rates at Canara Bank
The bank is offering interest between 3.25% and 7.10%, depending on tenure and customer category.
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- Minimum FD tenure: 7 days
- Maximum FD tenure: 10 years
- Special 444-day FD:
- 6.50% for regular customers
- 7.00% for senior citizens
- 7.10% for super senior citizens
FDs give you a fixed return at the end of the tenure, so there’s no fluctuation once the interest rate is locked in.
5-Year FD: The Most Popular Option
Canara Bank’s 5-year FD is offering:
- 6.25% for regular customers
- 6.75% for senior citizens
Maturity Value on ₹2,00,000 Deposit
Here’s what you’ll get after 5 years:
| Category | Deposit Amount | Interest Rate | Maturity Amount | Fixed Interest Earned |
|---|---|---|---|---|
| Regular Citizen | ₹2,00,000 | 6.25% | ₹2,72,708 | ₹72,708 |
| Senior Citizen | ₹2,00,000 | 6.75% | ₹2,79,500 | ₹79,500 |
So, a senior citizen depositing ₹2 lakh for 5 years earns a guaranteed ₹79,500 in interest.
Should You Invest Now?
If FD returns drop again after an RBI rate cut, the current rates may not last long. Locking in now helps you secure a stable return without worrying about market changes.
Disclaimer
This article is for informational purposes only. Always consult your financial advisor before making any investment decisions. The publisher is not responsible for any financial risks or losses.
