Canara Bank FD 2025: Invest ₹20,00,000 for 310 Days – Check Maturity Value & Interest Rates
Table of Contents
What is a Fixed Deposit (FD)?
A Fixed Deposit (FD) is one of the most trusted and simplest saving instruments offered by banks and financial institutions. It allows you to deposit a lump sum amount for a fixed period at a pre-agreed interest rate, ensuring guaranteed returns. FDs are low-risk investments, ideal for conservative investors seeking predictable growth of their money over time.
Unlike savings accounts, which offer variable interest rates, FDs lock in your money for the fixed term you choose, with the benefit of a higher interest rate than regular savings accounts.
Canara Bank FD 2025 Details
Canara Bank, a major government-owned bank in India, offers Fixed Deposits with various tenures suited for different financial goals. The bank provides competitive interest rates and flexible options for interest payouts and premature withdrawals.
For 2025, one particularly attractive product is the 310-day FD – a tenure that fits well for investors looking to invest for around 10 months without committing for a full year.
Key Features of Canara Bank FD 2025
- Minimum Investment: ₹10,000
- Selected Tenure: 310 days
- Interest Payout Options: Quarterly or on Maturity
- Premature Withdrawal: Allowed with Penalty
- Renewal: Automatic or Manual
Interest Rates and Tenure
Interest rates on Fixed Deposits vary depending on the tenure selected. Canara Bank offers competitive rates that make short-to-medium term investments worthwhile.
| FD Tenure | Interest Rate (Per Annum) | Interest Payout Options |
|---|---|---|
| 310 days | 7.25% | Maturity / Quarterly |
| 1 year | 7.50% | Maturity / Quarterly |
| 3 years | 7.40% | Maturity / Quarterly |
| 5 years | 7.60% | Maturity / Quarterly |
Maturity Amount Calculation
Understanding how much you will get at the end of your FD is essential for investment planning. Suppose you invest ₹20,00,000 in Canara Bank FD for 310 days at an interest rate of 7.25% per annum. Here’s how you calculate the maturity amount.
Maturity Amount = Principal + Interest Earned
Interest calculation formula:
Interest = Principal × Rate of Interest × Time (in years)
| Principal (P) | ₹20,00,000 |
| Rate of Interest (R) | 7.25% p.a. |
| Time (T) | 310/365 (years) |
Interest calculation:
₹20,00,000 × 7.25 / 100 × 310 / 365 = ₹1,23,287 (approx.)
Therefore, Maturity Amount = ₹20,00,000 + ₹1,23,287 = ₹21,23,287
Infographic: Interest Rate Comparison
Canara Bank FD Interest Rates by Tenure
Taxation on FD Interest
The interest you earn from your Fixed Deposit is taxable under your income tax slab. According to current rules:
- Canara Bank deducts TDS (Tax Deducted at Source) if the interest income exceeds ₹40,000 per annum, or ₹50,000 for senior citizens.
- If your total income is below the taxable limit and you submit Form 15G/15H, you can avoid TDS deduction.
- If TDS is deducted and your total income is below taxable limits, you can claim a refund by filing your income tax return.
Advantages of Canara Bank FD
- Assured and safe returns backed by a government-owned bank
- Flexible tenures spanning from 7 days to up to 10 years
- Loan facility available against FD as collateral
- Premature withdrawal allowed with nominal penalty
- Both online and offline modes available for investment – convenience at your fingertips
How to Invest in Canara Bank FD
Starting your Fixed Deposit investment with Canara Bank is straightforward and can be done in just a few steps:
- Visit your nearest Canara Bank branch, or alternatively, access Canara Bank’s official internet banking portal or mobile application.
- Navigate to the Fixed Deposit section and select your preferred tenure (310 days for this example).
- Enter the investment amount — ₹20,00,000 in this demonstration.
- Choose the interest payout preference: either quarterly interest or lump sum at maturity.
- Complete the payment via available modes, such as net banking, cheque, or cash at the branch.
- Receive your Fixed Deposit receipt instantly through email or collect the physical copy from the bank.
Frequently Asked Questions (FAQs)
Is Canara Bank FD safe?
Yes, Canara Bank is a government-owned bank, which makes its Fixed Deposits one of the safest investment options with assured and timely returns.
Can I withdraw my FD before maturity?
Yes, premature withdrawal is allowed, but it may attract a penalty on the interest earned. The principal amount is always safe and returned as per the bank’s terms.
What is the minimum amount required to open a Canara Bank FD?
The minimum investment amount is ₹10,000, making it accessible for a wide range of investors.
Can I renew my FD after maturity?
Yes, Canara Bank offers automatic renewal as well as manual renewal options for your convenience.
Is TDS applicable on FD interest?
Yes, TDS is deducted if the total interest earned exceeds the threshold limit of ₹40,000 for general taxpayers and ₹50,000 for senior citizens in a financial year.
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