Eligibility for Canara Bank Fixed Deposits

The following individuals and entities are eligible to open a Fixed Deposit account with Canara Bank, subject to bank norms.

• 1

  Individual investors

  Resident individuals as per Canara Bank guidelines

• 2

  Senior citizens

  Eligible for higher interest rates

• 3

  Hindu Undivided Families (HUFs)

  Account operated by the Karta or authorised member

• 4

  Sole proprietorships, partnership firms, and companies

  Valid business documents required

• 5

  Minors

Online Fixed Deposit Application

Canara Bank allows customers to open a Fixed Deposit online through net banking or mobile banking, offering a quick and paperless process.

1. 1

   Log in to Net Banking or Mobile App

   Log in to Canara Bank net banking or mobile banking using your registered credentials.

2. 2

   Select Fixed Deposit Option

   Choose the Fixed Deposit or Term Deposit option from the dashboard.

3. 3

   Enter Deposit Details

   Enter the deposit amount and select the desired tenure.

4. 4

   Choose Maturity Instructions

   Select maturity options such as auto-renewal or credit to savings account.

5. 5

   Confirm and Submit

   Review all details and submit the request to open the Fixed Deposit.

Offline Fixed Deposit Application

Customers can also open a Canara Bank Fixed Deposit by visiting the nearest branch and completing the process in person.

1. 1

   Visit Nearest Canara Bank Branch

   Visit your nearest Canara Bank branch during banking hours.

2. 2

   Fill FD Application Form

   Fill in the Fixed Deposit application form with required details.

3. 3

   Submit Required Documents

   Submit valid identity proof, address proof, and PAN card.

4. 4

   Deposit Funds

   Deposit the FD amount through cash or cheque.

5. 5

   Receive FD Receipt

   Collect the Fixed Deposit receipt after successful processing.

Interest earned on Canara Bank Fixed Deposits is fully taxable and is added to the investor’s income under the head “Income from Other Sources.” The tax payable depends on the individual’s income tax slab. Example: If you earn ₹35,000 as FD interest in a financial year, this amount must be added to your total income and taxed as per your applicable slab rate.

Canara Bank deducts Tax Deducted at Source (TDS) if the total FD interest exceeds ₹40,000 in a financial year. For senior citizens, the TDS threshold is ₹50,000. Example: If a regular customer earns ₹45,000 as FD interest in a year, TDS will be deducted since the interest exceeds ₹40,000.

Canara Bank Tax Saving Fixed Deposits qualify for a tax deduction of up to ₹1.5 lakh per financial year under Section 80C. These FDs come with a 5-year lock-in period, and premature withdrawal is not allowed. Example: If you invest ₹1,50,000 in a Canara Bank Tax Saver FD, you can claim the full amount as a deduction under Section 80C.

Investors whose total income is below the taxable limit can submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens) to avoid TDS deduction on FD interest. Example: If a senior citizen earns ₹48,000 as FD interest and submits Form 15H, no TDS will be deducted.

Senior citizens enjoy a higher TDS exemption limit of ₹50,000 on FD interest. However, the interest income remains taxable and must be declared while filing income tax returns. Example: If a senior citizen earns ₹55,000 as FD interest, TDS applies only after crossing ₹50,000, but the entire ₹55,000 must be reported as income.

What is the minimum amount required to open a Canara Bank Fixed Deposit?

The minimum deposit amount generally starts from ₹1,000, depending on the FD scheme.

Do senior citizens get extra interest on Canara Bank FDs?

Yes, senior citizens are eligible for higher interest rates compared to regular customers.

Is premature withdrawal allowed on Canara Bank Fixed Deposits?

Yes, premature withdrawal is allowed, but penalty charges may apply as per bank rules.

Are Canara Bank Fixed Deposits safe?

Yes, Canara Bank is a public sector bank, making its fixed deposits safe and reliable.

Can I open a Canara Bank Fixed Deposit online?

Yes, Canara Bank allows customers to open Fixed Deposits online through net/mobile banking as well as by visiting a branch.