Canara Bank has come up with a new rate structure for Fixed Deposits (FD) applicable to retail customers in 2025. The new rates are applicable to deposits below ₹3 crores, changing with time and type of customer (general or senior citizen).
Updated interest rates: The amount to be received
- Callable FDs for general customers have been adjusted to give interest rates ranging from 4% to around 7% per annum according to the time period.
- The rates for senior citizens are slightly better — usually going up to 7.50% p.a. for a number of tenures.
- The much in demand 444-day FD is still there with attractive rates — most of the time it is the second highest among the bank’s short to mid-term deposits attractive rates.
Besides, the bank still has the Tax-Saver FD scheme, which effectively compensates customers with interest rates that are on par with the general FD rates, for the opportunity of taking a tax deduction under Section 80C (for deposits of up to ₹1.5 lakh).
Implication for Depositors
The 2025 Canara Bank FD scheme is suited for low-to-medium risk investors, providing guaranteed returns, hence it is still a safe choice. Even short-term deposits (less than a year) get modest interest; however, for longer terms or senior-citizen FDs, a higher return is offered. For instance, the returns from an investment of ₹1 lakh for 444 days under senior-citizen slab will be significantly over standard savings accounts or shorter instruments.
Additionally, the tax-saver option also assists salaried people or those with taxable income in tax liability reduction while receiving stable interest.
Also Read: Senior Citizen Guaranteed Income for Retirees: Top Fixed Deposits with High Returns in 2025…