Canara Bank ₹2 Lakh FD Scheme : Complete Details, Interest Rates, Maturity Value & Benefits
Fixed Deposits (FDs) continue to be one of the most preferred and secure investment options for Indian households. They offer guaranteed returns, capital safety, and flexible investment periods—making them suitable for both short-term savings and long-term financial planning. Among the top banks offering FD schemes, Canara Bank is known for its reliability, customer-friendly features, and competitive interest rates. If you are considering investing ₹2 lakh in a Canara Bank FD, this comprehensive guide will help you understand the scheme’s features, interest rates, maturity amounts, and key benefits.
Key Features of Canara Bank Fixed Deposit Scheme
Canara Bank offers a wide range of FD options designed to meet different financial needs. Here are the main highlights of the scheme:
1. Minimum Deposit
You can start a fixed deposit with as low as ₹1,000. Since you plan to invest ₹2 lakh, your deposit falls under the most favorable interest rate category.
2. Flexible Tenure Range
The tenure options range from 7 days to 10 years, allowing you to choose a duration that aligns with your savings goals—whether short-term or long-term.
3. Eligible Investors
Canara Bank FDs are available for:
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Individuals
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Joint account holders
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Hindu Undivided Families (HUFs)
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NRIs (NRE/NRO deposits)
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Companies and trust accounts
4. Deposit Limit
Interest rates apply to deposits below ₹3 crore. A ₹2 lakh FD comfortably falls under this slab.
5. Loan Facility
You can obtain up to 90% of your FD amount as a loan or overdraft. This ensures liquidity in case of emergencies without breaking your FD.
6. Premature Withdrawal
Allowed with a small penalty—usually around 1%. For deposits up to ₹5 lakh, penalties are relatively low.
7. Nomination Facility
Investors can add a nominee to ensure easy transfer of the deposit in case of any unfortunate event.
Current Interest Rates on Canara Bank FDs (Below ₹3 Crore)
Canara Bank’s FD interest rates vary based on tenure. Below are the rates applicable for deposits like your ₹2 lakh investment:
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7 to 45 days: 4.00%
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46 to 90 days: 5.25%
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91 to 179 days: 5.50%
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180 to 269 days: 6.15%
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270 days to <1 year: 6.25%
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1 year: 6.85%
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Special 444 days: 7.25%
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Above 1 year to 3 years: 6.85% – 7.15%
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3 years to <5 years: Around 7.20%
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5 to 10 years: Around 6.70%
Maturity Value of a ₹2 Lakh FD in Canara Bank
Here’s how your ₹2 lakh investment grows across different tenures:
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1 Year at 6.85% : Approx. ₹2,13,700
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444 Days at 7.25% : Around ₹2,24,000
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3 Years at ~7.20% : Nearly ₹2,47,000
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5 Years at ~6.70% : Around ₹2,39,000
These values are indicative and may slightly vary depending on the compounding frequency and payout option chosen.
Types of FD Schemes Offered by Canara Bank
Canara Bank provides multiple FD options designed for different financial goals:
1. Cumulative FD
Interest is compounded and paid at maturity along with the principal—ideal for wealth growth.
2. Non-Cumulative FD
Interest is paid monthly, quarterly, half-yearly, or annually—perfect for those seeking regular income.
3. Tax-Saving FD
Has a 5-year lock-in period and qualifies for Section 80C tax deduction up to ₹1.5 lakh.
4. NRE/NRO FD Schemes
Special FD options for NRIs with repatriable and non-repatriable benefits.
Benefits of Investing in a Canara Bank Fixed Deposit
1. High Safety of Capital
As a PSU bank, Canara Bank offers strong credibility and government-backed security.
2. Competitive Interest Rates
Attractive returns, especially on the popular 444-day special FD scheme.
3. Flexible Investment Options
Wide tenure choices help you match your investment to your short-term or long-term goals.
4. Liquidity Support
Loan/OD options against FD ensure that your money is accessible during emergencies without breaking the deposit.
5. Senior Citizen Benefits
Older investors enjoy extra 0.50% interest, significantly increasing returns.
6. Tax Advantages
Tax-saving FD options allow deductions under Section 80C, helping reduce taxable income.
Important Things to Know Before Investing
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Interest earned on FDs is taxable as per your income tax slab.
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TDS is deducted if your annual bank interest exceeds ₹40,000 (₹50,000 for senior citizens).
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FD interest rates frequently change—always verify the latest rates before booking.
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Penalties may apply on premature withdrawal—check details with the bank.
Conclusion
A ₹2 lakh FD in Canara Bank is a solid, safe, and profitable investment option for anyone seeking guaranteed returns without market risk. With flexible tenure options, attractive interest rates, loan facilities, and special benefits for senior citizens, Canara Bank FDs help you grow your savings securely. By choosing the right tenure and payout method, you can maximize your earnings and align your investment with your financial goals.