Canara Bank FD Scheme Fixed Deposit (FD) is one of the safest and most trusted investment options in India. If you are planning to invest your savings in a secure scheme with guaranteed returns, Canara Bank FD Scheme can be a smart choice. Many investors are interested in knowing how depositing ₹2,00,000 in Canara Bank can generate fixed interest of up to ₹45,201 at maturity. In this detailed article, we will explain everything in simple and clear language.
Canara Bank is one of India’s leading public sector banks with a strong nationwide presence. Established in 1906, the bank offers a wide range of financial products including savings accounts, loans, recurring deposits, and fixed deposits. Due to its government backing and long history, many customers trust Canara Bank for safe investments.
What is a Fixed Deposit (FD)?
A Fixed Deposit is a financial product where you deposit a lump sum amount for a fixed period at a predetermined interest rate. Unlike savings accounts, the interest rate in FD remains fixed for the entire tenure. This makes it ideal for investors who want stable and predictable returns.
Key features of FD:
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Fixed interest rate for the selected tenure
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Flexible duration ranging from 7 days to 10 years
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Guaranteed returns
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Option for cumulative and non-cumulative interest
How ₹2,00,000 Can Grow to ₹2,45,201
Let us understand how you can earn fixed interest of around ₹45,201 by investing ₹2,00,000.
If you deposit ₹2,00,000 in a 3-year FD at an interest rate of approximately 7.90% per annum (available for eligible senior citizens on select tenures), the maturity amount can reach around ₹2,45,201. This means your total interest earnings would be about ₹45,201 over three years.
Below is an estimated calculation table:
| Investment Amount | Tenure | Interest Rate (Approx) | Interest Earned | Maturity Amount |
|---|---|---|---|---|
| ₹2,00,000 | 3 Years | 7.40% | ₹42,682 | ₹2,42,682 |
| ₹2,00,000 | 3 Years (Senior Citizen) | 7.90% | ₹45,201 | ₹2,45,201 |
Note: Interest rates may change from time to time depending on bank policy and RBI guidelines. The above calculation is for understanding purposes.
Current FD Interest Rates Overview
Canara Bank generally offers competitive FD interest rates depending on tenure. Senior citizens usually receive an additional 0.50% interest over regular rates.
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Short-term deposits (1 year): Around 6.75% to 7%
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Medium-term deposits (2–3 years): Around 7% to 7.40%
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Senior citizen rate: Up to 7.90% on select tenures
Before investing, always check the latest interest rates on the official bank website or nearest branch.
Benefits of Investing in Canara Bank FD
Guaranteed Returns
Your money grows at a fixed rate without market risk. Unlike mutual funds or stocks, FDs are not affected by market fluctuations.
Safe Investment Option
As a public sector bank, Canara Bank provides a high level of security and trust.
Flexible Tenure Options
You can choose tenure according to your financial goals, whether short-term savings or long-term planning.
Loan Against FD
You can take a loan of up to 90% of your FD amount without breaking your deposit.
Auto Renewal Facility
At maturity, your FD can automatically renew for the same tenure if you opt for it.
Who Should Invest in This FD Scheme?
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Retired individuals looking for fixed income
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Senior citizens who want higher interest rates
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Salaried professionals planning safe savings
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Parents saving for children’s future expenses
FD is especially suitable for risk-averse investors who prefer guaranteed returns over high-risk investments.
Tax and Other Important Information
Interest earned on FD is taxable as per your income tax slab. If the interest earned exceeds the prescribed limit in a financial year, TDS (Tax Deducted at Source) may apply.
Premature withdrawal is allowed but may attract a small penalty and reduced interest rate. Therefore, it is advisable to select the tenure carefully before investing.
How to Open a Canara Bank FD
You can open an FD in two ways:
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Visit the nearest Canara Bank branch and fill out the FD application form.
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Use internet banking or mobile banking to book an FD online if you already have an account with the bank.
You will need basic KYC documents such as PAN card and identity proof.
Final Conclusion
Depositing ₹2,00,000 in the Canara Bank FD Scheme can help you earn fixed interest of up to ₹45,201 in three years, depending on the interest rate and eligibility. It is a safe and reliable investment option for individuals who want stable returns without market risk.