Canara Bank FD Schemes

Canara Bank is a major public sector bank in India. It is also one of the oldest ones in the country. Headquartered in Bangalore, the Canara Bank has over 5000 branches spread all over the country. Fixed deposit schemes from Canara bank are also quite popular among Indian citizens. The bank offers 4 different types of fixed deposit schemes that are quite popular with customers around India.

The 4 Canara Bank fixed deposits schemes are as follows:

Fixed deposit: This is the basic fixed deposit scheme. Here, customers can deposit any amount of money they wish to. Deposits are available with tenures ranging from 7 days to 120 months or 10 years. Customers can also choose the frequency of interest payment from options such as monthly interests (discounted rates), quarterly, half-yearly and yearly intervals. This gives you greater flexibility in controlling the returns and optimize the returns according to your specific needs. You can also opt for a personal secured loan up to 90% of the value of the deposit. Partial withdrawal is allowed, offering you liquidity as and when the need arises.

Kamadhenu deposit: This is a re-investment plan with no maximum ceiling on deposit amount. You can choose tenures between 5 months and 120 months. The accrued interest is paid out on maturity of the deposit. You can also avail a loan of up to 90% of the deposit value against the Kamadhenu fixed deposit account. Partial withdrawal is applicable and so is pre-payment penalty of 1%.

Ashraya deposit: Fixed Deposit and Kamadhenu Deposit account holders can open an Ashraya deposit with Canara Bank. This FD scheme is meant exclusively for senior citizens. Tenures are available from 15 days to 120 months, and an additional 0.50% interest rate is applicable on deposits. Frequency of interest payment can be selected as monthly, quarterly, half-yearly and yearly payments, with Kamadhenu account holders receiving interest on a quarterly basis only. You can avail a loan up to 90% of deposit value and opt for premature withdrawal at 1% penal rate.

Canara Tax Saver scheme: This is designed to benefit taxpayers including salaried class, professionals and businessmen. You can deposit a maximum of Rs.1.5 lakhs per person, in a fixed tenure of 5 years. Interest is paid out in monthly and quarterly frequencies only. Loans are not available and premature withdrawal is also disallowed here. However, customers can claim tax deductions up to Rs.1.5 lakhs according to Section 80C.

As you can see, Canara Bank FD schemes are designed for people from different classes such as self-employed, professionals, salaried individuals, businessmen, senior citizen etc., so as to provide them with customized benefits. The deposits can be opened with minimal documentation requirements, and the whole process is painless and fast. You can approach the nearest Canara Bank branch with the requisite documents to open your account almost immediately. Also, being a government-owned bank, there is a high level of reliability on timely returns from the deposit.