FD Scheme Canara Bank 2 Lakh : Complete Details, Interest Rates, and Benefits

FD Scheme Canara Bank 2 Lakh : Complete Details, Interest Rates, and Benefits

Fixed deposits (FDs) have always been one of the most trusted investment options for Indian families. They offer safety, guaranteed returns, and flexible tenure choices compared to market-linked instruments. Among the many banks offering FD facilities, Canara Bank stands out for its customer-friendly schemes and attractive interest rates. If you are planning to invest ₹2 lakh in a Canara Bank FD, here’s a complete guide to help you understand the scheme, maturity benefits, and all the rules you should know.

Key Features of Canara Bank Fixed Deposit

Current Interest Rates

Canara Bank offers different interest rates depending on the tenure. Here’s an overview for deposits under ₹3 crore (i.e., including ₹2 lakh):

  • 7 days to 45 days – 4.00% p.a.

  • 46 to 90 days – 5.25% p.a.

  • 91 to 179 days – 5.50% p.a.

  • 180 to 269 days – 6.15% p.a.

  • 270 days to <1 year – 6.25% p.a.

  • 1 year – 6.85% p.a.

  • Special 444 days scheme – 7.25% p.a.

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

  • 3 years to <5 years – Around 7.20% p.a.

  • 5 to 10 years – Around 6.70% p.a.

👉 Senior citizens enjoy an additional 0.50% over the regular rate. For example, if the public rate is 7.25%, senior citizens can get 7.75%.

Maturity Value of a ₹2 Lakh FD

Let’s understand how much your ₹2 lakh FD can grow at Canara Bank:

  • 1 Year at 6.85%: Maturity amount will be approximately ₹2,13,700.

  • 444 Days at 7.25%: Maturity will be around ₹2,24,000.

  • 3 Years at ~7.20%: Maturity will be roughly ₹2,47,000.

  • 5 Years at ~6.70%: Maturity will be about ₹2,39,000.

(Values are indicative and depend on compounding frequency chosen by the depositor.)

Types of FD Options in Canara Bank

  1. Cumulative FD – Interest is reinvested and paid on maturity with principal. Best for long-term growth.

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

  3. Tax Saving FD – Lock-in of 5 years, with a maximum deposit eligible for deduction under Section 80C of the Income Tax Act.

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

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Benefits of Investing in Canara Bank FD

  • Safety of Capital: Being a PSU bank, Canara Bank offers strong trust and government backing.

  • Flexible Choices: Wide tenure range allows you to match FDs with your financial goals.

  • Attractive Rates: Competitive interest, especially on the 444 days special scheme.

  • Liquidity: Facility to take loans against FD ensures money is accessible in emergencies.

  • Senior Citizen Advantage: Higher rates ensure better returns for elderly investors.

  • Tax Benefits: With tax-saving FDs, you can claim deductions up to ₹1.5 lakh under 80C.

Things to Keep in Mind

  • Interest income is taxable as per your income tax slab. TDS is deducted if total interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens).

  • Always check the latest FD rates on Canara Bank’s official website before booking, as rates change frequently.

  • For premature withdrawals, confirm the exact penalty with the branch.

Conclusion

A ₹2 lakh FD in Canara Bank is a secure and smart investment choice for those seeking steady returns with zero market risk. Whether you want to grow your savings over the years or earn regular interest payouts, Canara Bank’s FD schemes offer the right mix of safety and returns. By choosing the right tenure and payout option, you can maximize your earnings and meet your financial goals confidently.

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