FD Scheme

Canara Bank FD Scheme for ₹2 Lakh: Interest Rates, Maturity Value & Complete Benefits

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Canara Bank FD Scheme for ₹2 Lakh: Interest Rates, Maturity Value & Complete Benefits

Fixed Deposits (FDs) are among the most popular and trusted investment options for Indian households. They provide safety, guaranteed returns, and flexible tenure choices — unlike market-linked investments that carry risks. Among the many banks offering FD facilities, Canara Bank is a preferred choice because of its competitive interest rates and investor-friendly schemes.

If you are planning to invest ₹2 lakh in a Canara Bank FD, here’s a detailed guide covering features, interest rates, maturity values, and benefits.

Key Highlights of Canara Bank FD

  • Minimum Deposit: Start with as little as ₹1,000. With ₹2 lakh, your deposit easily qualifies for the best rates.

  • Tenure Flexibility: Choose between 7 days to 10 years, depending on your financial needs.

  • Eligible Investors: Individuals, joint account holders, HUFs, NRIs (via NRE/NRO accounts), companies, and trusts.

  • Maximum Limit: Interest rates apply for deposits below ₹3 crore — so your ₹2 lakh FD qualifies.

  • Loan Against FD: You can borrow up to 90% of the FD amount in case of emergencies.

  • Premature Withdrawal: Allowed with a small penalty (generally 1%). For FDs up to ₹5 lakh, penalties are minimal.

  • Nomination Facility: Hassle-free transfer to your nominee in case of unforeseen events.

Current Canara Bank FD Interest Rates (Below ₹3 Crore)

  • 7–45 days → 4.00% p.a.

  • 46–90 days → 5.25% p.a.

  • 91–179 days → 5.50% p.a.

  • 180–269 days → 6.15% p.a.

  • 270 days to <1 year → 6.25% p.a.

  • 1 year → 6.85% p.a.

  • Special 444 Days → 7.25% p.a.

  • Above 1 year to 3 years → 6.85%–7.15% p.a.

  • 3–5 years → Around 7.20% p.a.

  • 5–10 years → Around 6.70% p.a.

Senior citizens earn 0.50% extra- For example, instead of 7.25%, they get 7.75%.

How Much Will ₹2 Lakh Grow in Canara Bank FD?

Here’s the approximate maturity value depending on tenure:

  • 1 Year @ 6.85% → ₹2,13,700

  • 444 Days @ 7.25% → ₹2,24,000

  • 3 Years @ ~7.20% → ₹2,47,000

  • 5 Years @ ~6.70% → ₹2,39,000

FD Options in Canara Bank

  1. Cumulative FD – Interest gets reinvested and paid at maturity. Best for long-term wealth growth.

  2. Non-Cumulative FD – Interest is paid monthly, quarterly, half-yearly, or annually. Suitable for regular income seekers.

  3. Tax-Saving FD – 5-year lock-in; eligible for deduction under Section 80C (up to ₹1.5 lakh).

  4. NRE/NRO Deposits – Special FDs for NRIs, with repatriable and non-repatriable options.

Benefits of Investing in Canara Bank FD

  • Safe & Reliable – Backed by a leading PSU bank.

  • Flexible Tenures – Wide range of choices for different goals.

  • Attractive Returns – Especially the 444-day special scheme.

  • Liquidity Support – Loan against FD in times of need.

  • Senior Citizen Advantage – Extra 0.50% interest.

  • Tax Savings – 80C benefits via tax-saving FDs.

Important Points to Remember

  1. Interest earned is taxable as per your income tax slab.

  2. TDS is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).

  3. FD rates are subject to change — always confirm with the official Canara Bank website.

  4. Premature withdrawals may attract penalties, so confirm with your branch.

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Conclusion

Investing ₹2 lakh in a Canara Bank FD is a secure and smart choice for individuals who prefer steady returns without market risk. Whether you’re looking for long-term growth or regular interest income, Canara Bank’s FD schemes offer the right balance of safety, flexibility, and returns. By selecting the right tenure and FD type, you can maximize your earnings and meet your financial goals with confidence.