Following the Reserve Bank of India’s (RBI) decision to reduce the repo rate, many banks have started lowering their Fixed Deposit (FD) interest rates.
Kotak Bank cut its FD rates yesterday evening, and now Canara Bank has followed suit.
The bank has reduced interest rates on certain FDs by up to 0.20%. These revised rates came into effect on Thursday, April 10, 2025.
The new rates apply to term deposits above 2 years and below 5 years. Specifically:
FDs over 2 years but less than 3 years
FDs over 3 years but less than 5 years
These categories now offer interest rates that are 0.20% lower than before. The changes are applicable for FDs up to ₹3 crore.
Current Interest Rates on Canara Bank FDs
Canara Bank offers FD tenures ranging from 7 days to 10 years. The revised interest rates for the general public now range from 4% to 7.20%, while for senior citizens, they range from 4% to 7.70%.
Here’s a snapshot of the latest rates:
Short-Term FD Rates
| Tenure | General (Callable) | Senior Citizen (Callable) |
|---|---|---|
| 7 – 14 days | 4.00% | 4.00% |
| 46 – 90 days | 5.25% | 5.25% |
| 91 – 179 days | 5.50% | 5.50% |
| 180 – 269 days | 6.15% | 6.65% |
| 270 days – < 1 year | 6.25% | 6.75% |
Long-Term FD Rates
| Tenure | General (Callable) | Senior Citizen (Callable) |
|---|---|---|
| 1 year | 6.85% | 7.35% |
| 444 days | 7.25% | 7.75% |
| >1 – <2 years | 6.85% | 7.35% |
| >2 – <3 years | 7.15% | 7.65% |
| >3 – <5 years | 7.20% | 7.70% |
| >5 – 10 years | 6.70% | 7.20% |
Callable vs. Non-Callable FDs
Callable FDs: Allow premature withdrawals.
Non-Callable FDs: Do not allow early withdrawal; if done, a penalty is applied.
For deposits between ₹1 crore and ₹3 crore, interest rates differ for callable and non-callable FDs.
Non-callable FDs generally offer slightly higher rates, but with stricter withdrawal rules.
