Fixed Deposit schemes from Canara Bank are a great way to channel savings so as to earn high returns with the advantage of capital protection. Canara Bank FDs are safe fixed income options which offer flexible tenures and interest payout options which lets depositors balance liquidity and returns.
Eligibility for opening FD accounts at Canara Bank
Individuals, singly and jointly (less than 5), Hindu Unified Families (HUF), companies, guardians on behalf of minors, and other associations and institutions can opt for the different Canara Bank fixed deposit schemes. The following documents have to be produced at the time of opening a Canara Bank fixed deposit account:
- Duly filled the application form
- PAN Card copy/Form 60 or 61
- 2 photographs
- Identity proof as accepted under Know Your Customer (KYC) norms
- Related documents for proving HUF, company, partnership firm, proprietorship concern etc. status as applicable
Different fixed deposit schemes from Canara Bank
- Fixed Deposit: This is the flagship FD product from Canara Bank. There is no maximum ceiling for investment and interests can be paid out in annually, half-yearly, quarterly and monthly (discounted rates) periods.
- Kamadhenu Deposit: This is a re-investment plan from Canara Bank where customers receive compounded interests quarterly. Interest is paid out on the maturity of the scheme.
- Ashraya Deposit: Meant for senior citizens, the Ashraya fixed deposit scheme from Canara bank is applicable for customers of Kamadhenu and Fixed Deposit schemes.
- Tax Saver Scheme: This term deposit scheme is applicable under Kamadhenu Deposit and Fixed Deposit schemes. The Tax Saver Scheme is meant for businessmen, salaried individuals, and professionals who are taxpayers.
1.00% penalty is applicable in case of pre-closures of FD accounts of less than ₹ 1 crore. This penalty is not levied on FD values above ₹ 1 crore. Interests will not be paid in case the fixed deposit account has been closed within a week of its inception.
Minimum and maximum amounts for opening Canara Bank fixed deposit account
- Fixed Deposit: Minimum deposit of ₹ 1,000. No upper limit.
- Kamadhenu Deposit: ₹ 1,000 minimum deposit value. No upper ceiling.
- Ashraya Deposit: ₹ 1,000 minimum deposit value. No upper limit.
- Tax Saver Scheme: ₹ 100 to ₹ 1 lakh per person (in multiples of ₹ 100).
Minimum and maximum tenures applicable on FDs from Canara Bank
- Fixed Deposit: 15 days to 120 months. For individual deposits above ₹ 5 lakhs, minimum tenure ranges from 7-14 days.
- Kamadhenu Deposit: 5 months to 120 months.
- Ashraya Deposit: 15 days to 120 months (5 months minimum tenure for customers under Kamadhenu scheme).
- Tax Saver Scheme: The allowed tenure is 5 years.
Procedure to open a Canara Bank FD account
To open a Canara Bank FD account, you have to be eligible for the products according to the eligibility criteria as explained above. All the relevant documents have to be submitted as mentioned earlier, so that the bank can proceed with registration of your FD account. Online registration is currently not available for fixed deposits, though you can use services such as BankBazaar.com to find and compare fixed deposit products, and apply to/get quotes for your choices.
Interest rates on FD accounts at Canara Bank
For deposits up to ₹ 1 crore (per annum) interest rates vary from 4% p.a. to 9% p.a. for deposits held for periods between 7 days to 1 year. For deposits above ₹ 1 crore (per annum), rates range from 6.25% p.a. to 8.75% for deposits held between 1 year ot 10 years. Apart from these rates, Canara Bank offers 9.00% p.a. interest rate for tenures of 500/1000 days and 8.75% p.a. interest on tenure of 1200 days. For deposits of tenures of 444 days and 555 days, the bank offers 9.10% p.a. under the Canara Shikhar Deposit Scheme.
Taxes on Canara Bank FD accounts
TDS is applicable on interests paid on all Canara Bank fixed deposit schemes. There are two categories of customers who have to pay TDS on fixed deposit accounts – People with PAN card and people without PAN card. Those customers who have submitted their PAN details are to pay 10% TDS on accumulated interests of more than ₹ 10,000. Customers who haven’t submitted their PAN details to the bank have to pay 20% TDS on accumulated interests above ₹ 10,000.
Main features of FD products from Canara Bank
- Loans available against FD accounts.
- Nomination facility available.
- Closures before maturity.
- Withdrawal facility available in multiples of ₹ 1,000, while the rest of the amount will continue to attract interests as applicable.
Availing loans against Canara Bank fixed deposits
Loans are available against up to 90% of the overall amount in the fixed deposit.
Special rates for senior citizens
Senior citizens are provided an additional 0.50% interest on all applicable deposit rates on the various fixed deposit products from Canara Bank. The Ashraya Scheme as described in above sections is primarily meant for senior citizens of India.
What are the premature withdrawal terms?
For domestic/NRO deposits, premature withdrawal is allowed at no penal interest for deposits above Rs.1 crore. For deposits below Rs.1 cr, 1% penal rate of interest is applicable. No interest will be payable if the account is withdrawn within 7 days.
For NRE deposits, premature withdrawal before 1 year will not receive any accrued interests from the period. Withdrawals after 1 year will attract a penal rate of 1%.
Are NRI fixed deposit schemes available in Canara Bank?
Yes, NRIs can open fixed deposits with Canara Bank. The deposits are available under NRO (non-resident ordinary), NRE (non-resident external rupees) and FCNR (foreign currency non-resident) accounts.
- NRO FDs: These accounts can be opened in Indian Rupees only. The account may be held jointly with a resident Indian. Interest rates are the same as applicable for domestic term deposits. Loans are available against the deposit amount.
- NRE FDs: These accounts can be opened in Indian Rupees only. The account may be held jointly only with a close Indian resident relative. Loans can be availed against the term deposits. Interests earned are exempt from income and wealth taxes.
- FCNR FD: Accepted currencies include USD, EURO, GBP, CAD, and JPY. The account can be held jointly only with other NRIs. Interests are non-taxable under Income Tax laws. Loans can be availed against the deposit amount.