Public sector Canara Bank has revised its fixed deposit (FD) rates across tenors for general customers and senior citizens, effective August 7, 2025. The bank has also reduced interest rates for domestic/NRO/NRE savings bank deposits in select slabs.
According to the bank’s website, general customers will be offered now rates between 3.25% and 6.50% on deposits (callable) less than Rs 3 crore. For general customers, the highest rate of 6.5% will be offered on deposits with a tenure of 444 days. In callable fixed deposits, premature withdrawal is permitted.
While senior citizens will continue to receive better deals on select tenor FDs compared with plans for general customers. For seniors, FD rates range between 3.25% and 7%. Fixed deposits with a 444-day tenor will give the highest rate of 7% to seniors above 60 years of age.
| 2. TERM DEPOSITSRate of Interest (%) p.a.For Deposits less than Rs.3 Crore w.e.f. 07.08.2025 | ||||||||
| A. Domestic | ||||||||
| Less than Rs.3 Crore | ||||||||
| Callable | Non Callable ( Above Rs.1 Crore ) $ | |||||||
| Term Deposits (All Maturities) | General Public | Senior Citizen | General Public | Senior Citizen | ||||
| Rate of Interest (% p.a.) | Annualised Interest yield (% p.a.) ** | Rate of Interest (% p.a.) # | Annualised Interest yield (% p.a.) ** | Rate of Interest (% p.a.) | Annualised Interest yield (% p.a.) ** | Rate of Interest (% p.a.) # | Annualised Interest yield (% p.a.) ** | |
| 7 Days to 45 Days | 3.25 | 3.29 | 3.25 | 3.29 | NA | NA | NA | NA |
| 46 Days to 90 Days | 4.25 | 4.32 | 4.25 | 4.32 | 4.35 | 4.42 | 4.35 | 4.42 |
| 91 Days to 179 Days | 4.50 | 4.58 | 4.50 | 4.58 | 4.60 | 4.68 | 4.60 | 4.68 |
| 180 Days to 269 Days | 5.50 | 5.61 | 6.0 | 6.14 | 5.60 | 5.72 | 6.10 | 6.24 |
| 270 Days to less than 1 Year | 5.75 | 5.88 | 6.25 | 6.40 | 5.85 | 5.98 | 6.35 | 6.50 |
| 1 Year & above to 1 year 3 months Only | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 444 Days | 6.50 | 6.66 | 7.00 | 7.19 | 6.60 | 6.76 | 7.10 | 7.29 |
| Above 1 Year 3 months to less than 2 Years | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 2 Years & above to less than 3 Years | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 3 Years & above to less than 5 Years | 6.25 | 6.40 | 6.75 | 6.92 | NA | NA | NA | NA |
| 5 Years & above to 10 Years | 6.25 | 6.40 | 6.75 | 6.92 | NA | NA | NA | NA |
This FD rate revision by Canara Bank has come despite the Reserve Bank of India (RBI) on August 6 maintaining status quo on repo rate at 5.5%. The RBI has cut repo rate by 100 bps so far this year, triggering a wave of rate cuts by banks for FD customers.
Premature withdrawal penalty for Canara Bank FD customers
A penalty of 1% will be charged for premature closure, partial withdrawal, or premature extension of Domestic/NRO term deposits below Rs 3 crore, for deposits accepted or renewed on or after March 12, 2019.
Canara Bank savings account interest rate
The bank has also revised its savings account interest rates. New savings account rates will range between 2.55% and 4% depending on the savings account balance. Earlier, the bank was offering rates in the range of 2.70% to 4%.
Summing up…
When the RBI cuts the repo rate, people with loans benefit because their EMIs become cheaper. But at the same time, those who keep money in savings accounts lose out, as banks reduce interest rates. In such a case, it’s wise to look for better investment options, so your savings don’t lose value due to inflation.