Canara Bank has introduced an attractive Fixed Deposit (FD) scheme for 270 days, offering competitive interest rates for both general investors and senior citizens. This makes it an excellent short-term investment option for individuals looking to grow their savings safely.
With secure returns and high liquidity, Canara Bank’s 270-day FD scheme is gaining attention among investors. Let’s explore the details, benefits, and how you can make the most of this opportunity.
Canara Bank Bumper Interest Returns on 270 Days FD
| Feature | Details |
|---|---|
| Bank Name | Canara Bank |
| Scheme Name | 270-Day Fixed Deposit |
| Interest Rate (General Public) | 6.25% per annum |
| Interest Rate (Senior Citizens) | 6.75% per annum |
| Minimum Investment | As per bank guidelines |
| Maximum Investment | No upper limit |
| Premature Withdrawal | Allowed with applicable penalties |
| Tax Benefits | No tax exemption, but TDS applies above ₹40,000 (₹50,000 for seniors) |
| Loan Facility | Available against FD |
| Official Website | Canara Bank |
Canara Bank’s 270-day Fixed Deposit Scheme is a highly attractive investment option for those looking for short-term, secure, and high-interest returns. With interest rates up to 6.75%, low risk, and easy online/offline application, this FD is an excellent choice for investors of all ages.
Why Choose Canara Bank’s 270-Day FD?
1. Attractive Interest Rates
Compared to regular savings accounts, which typically offer 2.50% to 3.50% interest per annum, Canara Bank’s 270-day FD provides a significantly higher return.
For instance:
- If you invest ₹5 lakh in this FD at 6.25%, you will earn approximately ₹8,562 in interest over 270 days.
- For senior citizens, the return would be ₹9,312, thanks to the 6.75% rate.
2. Ideal for Short-Term Investors
Unlike long-term FDs (5+ years), this 270-day FD provides liquidity while still ensuring higher returns. It’s suitable for:
- Individuals saving for short-term goals (e.g., vacation, emergency funds).
- Retirees seeking safe, moderate returns.
- Businesses looking to park surplus funds securely.
3. Low Risk & Secure Investment
Fixed Deposits in Canara Bank are backed by Deposit Insurance and Credit Guarantee Corporation (DICGC) for up to ₹5 lakh per depositor. This makes it a safe investment with zero market risk.
4. Loan Facility Against FD
Need urgent cash? Canara Bank allows you to take a loan against your FD for up to 90% of the deposit amount, ensuring liquidity without breaking your FD prematurely.
5. Tax Implications
- Tax Deducted at Source (TDS) applies if total interest exceeds ₹40,000 (₹50,000 for senior citizens).
- If your total income is below the taxable limit, submit Form 15G/15H to avoid TDS deduction.
6. Flexible Investment & Easy Process
- Open an FD online via net banking or by visiting the nearest Canara Bank branch.
- Choose automatic renewal or payout of interest at maturity.
- Premature withdrawal is available with nominal penalties.
see also: RBI FD New Rules: Big Changes for Investors in 2025
Step-by-Step Guide to Open a 270-Day FD in Canara Bank
1. Eligibility Check
To invest in this FD, you must be:
- An Indian resident
- Hindu Undivided Families (HUFs), firms, partnerships, and NRIs are also eligible
2. Documents Required
You will need:
- Identity Proof (Aadhaar, PAN, Passport, Voter ID)
- Address Proof (Aadhaar, Utility Bill, Driving License)
- Passport-size photograph
- Existing Canara Bank account details (if applicable)
3. Opening the FD Online
- Log in to Canara Bank Net Banking.
- Navigate to Fixed Deposit > Open FD.
- Choose 270-day tenure.
- Enter the deposit amount.
- Select interest payout option (monthly, quarterly, or at maturity).
- Verify details and confirm.
- You will receive an e-receipt for your FD investment.
4. Opening the FD Offline
- Visit the nearest Canara Bank branch.
- Fill out the FD application form.
- Submit KYC documents & initial deposit.
- Receive physical FD receipt for records.
Comparison with Other FD Schemes
| Bank | 270-Day FD Interest Rate (General) | Senior Citizen Rate |
|---|---|---|
| Canara Bank | 6.25% | 6.75% |
| SBI | 5.75% | 6.25% |
| HDFC Bank | 6.00% | 6.50% |
| ICICI Bank | 6.10% | 6.60% |
see also: Risk-Free Returns: Invest in This Post Office Scheme Like SIP for Guaranteed Returns
Canara Bank Bumper Interest Returns on 270 Days FD FAQs
1. Can I withdraw my FD before 270 days?
Yes, Canara Bank allows premature withdrawals, but with a penalty of 0.50% to 1%, depending on the duration.
2. What happens if I don’t renew my FD?
If not renewed, the maturity amount will be credited to your linked savings account.
3. Can NRIs invest in this FD?
Yes, NRIs can open NRE/NRO FDs with Canara Bank.
4. Is it better to invest in this FD or mutual funds?
If you want stable, risk-free returns, FDs are better. Mutual funds may offer higher returns but carry market risks.
5. Is there a loan facility against this FD?
Yes, Canara Bank provides loans of up to 90% of the FD value, ensuring liquidity when required.
