Canara Bank, a public sector bank, has increased interest rates on fixed deposits under Rs 2 crore. The new rates are effective from December 19, 2022, according to the bank’s official website.

The bank offers interest rates on deposits maturing in 7 days to 10 years that range from 3.25% to 7% for the general public and 3.25% to 7.50% for senior people after the revision.

Individuals can earn 7 per cent on 666 days Canara Bank FD. The senior citizens will earn 7.50 per cent on the same tenure. The bank has increased the interest rate on deposits maturing in two years or more but less than three years by 55 basis points, from 6.25% to 6.80%.

For fixed deposit tenure of three years and less than 10 years, the interest rate offered by the Canara Bank is 6.50 per cent for the general public and 7 per cent for senior citizens.

Source: Bank website

Senior citizens

According to the Canara Bank website, “Additional interest of 0.50% for Senior Citizens is available for Deposits (Other than NRO/NRE and CGA Deposits) less than Rs. 2 Cr and with tenor of 180 Days and above.”

Penalty

Premature closure, part withdrawal, premature extension of Domestic, NRO term deposits of less than Rs.2 Crore accepted/renewed on or after 12.03.2019 would result in a 1.00% penalty.
As per the website, “For premature closure/part withdrawal/premature extension of Domestic/NRO term deposits, the Bank imposes a penalty of 1.00%. Such prematurely closed/part withdrawn/prematurely extended deposits will earn interest at 1.00% below the rate as applicable for the relevant amount slab as ruling on the date of deposit and as applicable for the period run OR 1.00% below the rate at which the deposit has been accepted, whichever is lower.” However, no interest will be payable on term deposits prematurely closed/prematurely extended before completion of 7th day.