Canara Bank Updates FD: It is one among India’s largest public sector banks, announces revision of Fixed Deposit (FD) and Savings Account interest rates for the year 2025. The revised rate seeks to meet changes in the economic environment and with the monetary policy stance prevailing at present.
The above changes are applicable for retail deposits below ₹3 crore and have become effective from May 2025.
Canara Bank has changed its interest rates for various tenures of FDs. Summary is given below:
Short Term Deposit (7 days to 45 days): Now earning interest at the rate of 4.00%
Medium Term (180 days to 364 days): 6.15% to 6.25%
Interest rate changes from 1 Year Deposit up to 6.85%
Special Scheme: 7.00% for 444 days for general customers.
2-3 Years Tenure: Interest rates up to 6.90%.
3-5 Years: Up to 7.00%.
5 Years-10 Years: Interest 6.70%.
Additional benefits of up to 0.50% are offered to senior citizens for most tenures.
Super senior citizens (80+) can earn under this special scheme for 444 days an interest of up to 7.60%.
Callable FDs have mentioned the above rates. FDs that cannot be withdrawn before the completion of the term would very probably yield slightly higher rates.
Canara Bank set tiered interest structure for Savings accounts. There is a specific interest rate based on balance maintained in account.
Below ₹50 lakh: 2.70%
₹50 lakh to limit of < ₹5 crore: 2.75%
₹5 crore to limit of < ₹10 crore: 2.80%
₹10 crore and above: up to 4.00% depending upon which slab of balance falls into
The above-laid structure ensures that higher savings balances earn slightly more interest thus encouraging customers to maintain those higher deposits.
These revised rates are indicative of a balanced approach between offerings, providing competitive returns for fixed deposits and mere conservative offering for savings accounts. It provides opportunities for the more conservative investors, in particular the retirees, to book higher FD rates on a medium to long-term goal.
Customers are advised to evaluate their financial need and select tenures that correlate with the requirements of their investment horizon. On the other hand, short-term FDs may offer some flexibility for those requiring liquidity.
Also Read: Bank Rules 2025: Minimum Balance Rules Of SBI vs ICICI vs HDFC vs Other Banks
Canara Bank’s interest rate revision for the year 2025 mirrors trends in the market and the RBI monetary stance. While the FD rates are attractive for long-term investors, such investors must compare offers prevailing in the market and from all banks to maximize their overall returns.
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