Canara Bank FD Interest Rates 2019 Calculator
Comprehensive Guide to Canara Bank FD Interest Rates 2019
Fixed Deposits (FDs) remain one of the most popular investment options in India due to their safety, guaranteed returns, and flexibility. Canara Bank, one of India’s largest public sector banks, offered competitive interest rates on fixed deposits in 2019. This guide provides a detailed analysis of Canara Bank’s FD interest rates for 2019, helping you make informed investment decisions.
Canara Bank FD Interest Rates 2019: Overview
In 2019, Canara Bank offered differential interest rates based on:
- Deposit tenure (ranging from 7 days to 10 years)
- Deposit amount (regular vs. bulk deposits)
- Customer category (regular citizens vs. senior citizens)
- Type of deposit (domestic vs. NRE/NRO)
Canara Bank FD Interest Rates 2019 for Regular Citizens
| Tenure | Interest Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| 7 to 45 days | 6.25% | 6.75% |
| 46 to 90 days | 6.50% | 7.00% |
| 91 to 179 days | 6.75% | 7.25% |
| 180 days to less than 1 year | 7.00% | 7.50% |
| 1 year to less than 2 years | 7.25% | 7.75% |
| 2 years to less than 3 years | 7.50% | 8.00% |
| 3 years to less than 5 years | 7.75% | 8.25% |
| 5 years to 10 years | 8.00% | 8.50% |
Key Features of Canara Bank Fixed Deposits in 2019
- Minimum Deposit Amount: ₹1,000 (₹5,000 for tax-saving FDs)
- Maximum Deposit Amount: No upper limit for regular FDs
- Tenure Options: 7 days to 10 years
- Interest Payout Options:
- Monthly
- Quarterly
- Half-yearly
- Yearly
- At maturity (cumulative)
- Loan Facility: Up to 90% of the deposit amount
- Premature Withdrawal: Allowed with penalty (1% reduction in interest rate)
- Auto-Renewal: Available with same or different tenure
- Nomination Facility: Available for all deposit accounts
How to Calculate Canara Bank FD Maturity Amount
The maturity amount for a fixed deposit can be calculated using either:
- Simple Interest Formula:
Maturity Amount = Principal + (Principal × Rate × Time)/100
Where:
- Principal = Deposit amount
- Rate = Annual interest rate
- Time = Tenure in years
- Compound Interest Formula:
Maturity Amount = P × (1 + r/n)^(n×t)
Where:
- P = Principal amount
- r = Annual interest rate (in decimal)
- n = Number of times interest is compounded per year
- t = Time the money is invested for (in years)
Our calculator above uses the compound interest formula to provide accurate results based on your selected compounding frequency.
Comparison with Other Major Banks in 2019
Here’s how Canara Bank’s FD rates compared with other major banks in 2019 for 1-year deposits:
| Bank | Regular Citizen Rate | Senior Citizen Rate |
|---|---|---|
| Canara Bank | 7.25% | 7.75% |
| State Bank of India | 6.80% | 7.30% |
| Punjab National Bank | 7.00% | 7.50% |
| Bank of Baroda | 6.85% | 7.35% |
| HDFC Bank | 7.30% | 7.80% |
| ICICI Bank | 7.25% | 7.75% |
Tax Implications on Canara Bank FDs in 2019
Interest earned on fixed deposits is taxable as per the Income Tax Act, 1961. Here are the key tax rules that applied in 2019:
- TDS Deduction: Banks deduct TDS at 10% if interest income exceeds ₹10,000 in a financial year (₹50,000 for senior citizens)
- Form 15G/15H: Can be submitted to avoid TDS if total income is below taxable limit
- Tax-Saving FDs: 5-year tax-saving FDs (under Section 80C) offered tax deduction up to ₹1.5 lakh
- Tax Rate: Interest income is added to your total income and taxed at your applicable slab rate
Special FD Schemes by Canara Bank in 2019
- Canara Tax Saver Deposit Scheme:
- 5-year lock-in period
- Tax benefit under Section 80C
- Interest rate: 7.75% (8.25% for senior citizens)
- Minimum deposit: ₹100 (in multiples of ₹100)
- Maximum deposit: ₹1.5 lakh per financial year
- Canara Suvidha Deposit Scheme:
- Flexible deposit scheme with overdraft facility
- Minimum deposit: ₹5,000
- Overdraft up to 90% of deposit amount
- Interest rate same as regular FD rates
- Canara Double Deposit Scheme:
- Deposit doubles in 95 months (7 years 11 months)
- Interest rate: 7.50% p.a. (compounded quarterly)
- Minimum deposit: ₹1,000
- No maximum limit
How to Open a Canara Bank Fixed Deposit in 2019
Canara Bank offered multiple channels to open fixed deposits:
- Online through Internet Banking:
- Log in to Canara Bank net banking
- Navigate to ‘Deposits’ section
- Select ‘Fixed Deposit’ option
- Fill in deposit details and confirm
- Mobile Banking:
- Open Canara Bank mobile app
- Go to ‘Deposits’ section
- Select ‘Open FD’ option
- Enter details and submit
- Branch Visit:
- Visit nearest Canara Bank branch
- Fill FD account opening form
- Submit KYC documents (if not existing customer)
- Deposit amount through cash/cheque
- ATM:
- Insert debit card at Canara Bank ATM
- Select ‘Fixed Deposit’ option
- Enter deposit details
- Confirm transaction
Premature Withdrawal Rules for Canara Bank FDs in 2019
Canara Bank allowed premature withdrawal of fixed deposits with the following conditions:
- Penalty: 1% reduction in applicable interest rate
- Minimum Lock-in:
- 7 days for deposits less than ₹5 lakh
- No lock-in for deposits ₹5 lakh and above
- Interest Calculation: For premature withdrawal, interest was calculated at the rate applicable for the period the deposit remained with the bank, less 1% penalty
- Tax-Saving FDs: Premature withdrawal not allowed (5-year lock-in period)
Loan Against Canara Bank Fixed Deposit
Canara Bank offered loans against fixed deposits with the following features:
- Loan Amount: Up to 90% of the deposit amount
- Interest Rate: 1-2% above the FD interest rate
- Tenure: Up to the remaining tenure of the FD
- Processing Fee: Nil or nominal charges
- Repayment: Can be repaid in lump sum or EMIs
- Eligibility: Available to deposit holder or joint holders
Factors to Consider Before Investing in Canara Bank FDs in 2019
- Interest Rate Trends: Compare with other banks and previous rates to assess if rates are at peak
- Inflation Rate: Ensure FD returns beat inflation (CPI was around 3.45% in 2019)
- Liquidity Needs: Choose tenure based on when you might need the funds
- Tax Implications: Consider post-tax returns, especially for higher tax brackets
- Alternative Investments: Compare with other fixed-income options like debt funds, RDs, or government schemes
- Bank’s Financial Health: Canara Bank had strong fundamentals with:
- Total assets of ₹9.78 lakh crore
- CASA ratio of 29.63%
- Gross NPA of 8.83%
- Net NPA of 4.82%
- Compounding Frequency: More frequent compounding (monthly/quarterly) gives slightly better returns than annual compounding
Canara Bank FD vs Other Investment Options in 2019
| Parameter | Canara Bank FD | Savings Account | Debt Mutual Funds | Public Provident Fund |
|---|---|---|---|---|
| Interest Rate | 6.25%-8.00% | 3.5%-4.0% | 7%-9% (historical) | 8.0% (2019 rate) |
| Tenure Flexibility | 7 days to 10 years | No lock-in | No lock-in (ELSS has 3-year lock-in) | 15 years |
| Liquidity | Moderate (premature withdrawal allowed with penalty) | High | High (for open-ended funds) | Low (partial withdrawal from 7th year) |
| Tax Benefits | Only for 5-year tax-saving FD (80C) | None | Indexation benefit for LTCG | E-E-E tax status |
| Risk Level | Low (bank deposit insurance up to ₹1 lakh) | Low | Low to Moderate | Very Low (government-backed) |
| Minimum Investment | ₹1,000 | Varies by bank | ₹500-₹1,000 | ₹500 |
| Loan Facility | Available (up to 90%) | Not applicable | Not available | Available from 3rd year |
Historical Trend of Canara Bank FD Rates (2015-2019)
The interest rates on Canara Bank fixed deposits showed the following trend from 2015 to 2019:
- 2015: Rates ranged from 7.00% to 8.50% (highest for 5 years)
- 2016: Rates reduced to 6.75% to 8.25% post demonetization
- 2017: Further reduction to 6.50% to 8.00% due to RBI repo rate cuts
- 2018: Slight increase to 6.75% to 8.25% as rates started hardening
- 2019: Rates stabilized at 6.25% to 8.00% for regular deposits
Expert Tips for Maximizing Returns from Canara Bank FDs in 2019
- Ladder Your FDs: Split your investment across different tenures to balance liquidity and returns
- Choose Cumulative Option: For higher returns, opt for compounding at maturity rather than regular payouts
- Senior Citizen Benefit: If eligible, always opt for senior citizen rates (0.50% extra)
- Bulk Deposits: For amounts above ₹2 crore, negotiate for better rates
- Auto-Renewal: Enable auto-renewal to avoid reinvestment hassles
- Tax Planning: Use 5-year tax-saving FDs to claim 80C deductions
- Monitor Rates: Keep track of RBI policy changes that might affect FD rates
- Nomination: Always add a nominee to your FD account
Common Mistakes to Avoid with Canara Bank FDs
- Ignoring Inflation: Not accounting for inflation can erode real returns
- Overlooking TDS: Forgetting to account for TDS when calculating net returns
- Wrong Tenure Selection: Choosing very short or very long tenures without considering liquidity needs
- Not Comparing Rates: Not checking rates offered by other banks before investing
- Missing Auto-Renewal Deadlines: Letting FDs lapse instead of renewing them
- Not Updating KYC: Allowing KYC to expire which can freeze the account
- Ignoring Premature Withdrawal Rules: Not understanding penalty charges for early withdrawal
Authoritative Sources for Canara Bank FD Information
For the most accurate and official information about Canara Bank fixed deposits, you can refer to these authoritative sources:
- Canara Bank Official Website – For the latest interest rates and scheme details
- Reserve Bank of India – For regulatory guidelines on bank deposits
- Income Tax Department, Government of India – For tax implications on FD interest
- India Brand Equity Foundation – For banking sector analysis and trends
Frequently Asked Questions about Canara Bank FDs in 2019
Q1: What was the highest FD interest rate offered by Canara Bank in 2019?
The highest interest rate offered by Canara Bank in 2019 was 8.50% p.a. for senior citizens on deposits with tenure of 5 years to 10 years.
Q2: Could I open a Canara Bank FD jointly in 2019?
Yes, Canara Bank allowed fixed deposits to be opened jointly with up to three account holders. The interest was paid to the first holder unless specified otherwise.
Q3: Was there any special FD scheme for women in Canara Bank in 2019?
Canara Bank didn’t have any special FD schemes exclusively for women in 2019. However, women could avail the regular FD schemes and senior citizen benefits if eligible.
Q4: How was the interest on Canara Bank FDs taxed in 2019?
In 2019, interest earned on Canara Bank FDs was taxed as per the investor’s income tax slab. The bank deducted TDS at 10% if the interest income exceeded ₹10,000 in a financial year (₹50,000 for senior citizens).
Q5: Could NRIs open FDs with Canara Bank in 2019?
Yes, NRIs could open FD accounts with Canara Bank in 2019 through NRE (Non-Resident External) and NRO (Non-Resident Ordinary) fixed deposit schemes. The interest rates for NRE FDs were generally higher than domestic FDs.
Q6: What was the penalty for premature withdrawal of Canara Bank FD in 2019?
Canara Bank charged a penalty of 1% on the applicable interest rate for premature withdrawal of fixed deposits in 2019. For example, if the FD was earning 7.5%, the interest would be calculated at 6.5% for the period the deposit remained with the bank.
Q7: Could I get a loan against my Canara Bank FD in 2019?
Yes, Canara Bank offered loans up to 90% of the FD amount at an interest rate typically 1-2% higher than the FD rate. This was a good option for those who needed funds but didn’t want to break their FD.
Q8: What was the minimum amount required to open a Canara Bank FD in 2019?
The minimum amount required to open a regular fixed deposit with Canara Bank in 2019 was ₹1,000. For tax-saving FDs, the minimum amount was ₹100 (in multiples of ₹100) with a maximum of ₹1.5 lakh per financial year.
Q9: How could I calculate the maturity amount of my Canara Bank FD?
You could calculate the maturity amount using either the simple interest or compound interest formula, depending on your FD type. Our calculator above provides an easy way to compute this automatically based on your inputs.
Q10: Were Canara Bank FD rates different for different branches in 2019?
No, Canara Bank maintained uniform FD interest rates across all its branches in India in 2019. The rates were standardized regardless of the branch location.