Looking for a safe investment option with guaranteed returns? Public sector lender Canara Bank is currently offering attractive interest rates on Fixed Deposits (FDs).
With deposit tenures ranging from 7 days to 10 years, the bank is offering interest rates between 3.00% and 7.10%.
One particular scheme can help you earn up to ₹79,500 in fixed interest by investing ₹2 lakh.
Here’s how it works.
Special 555-Day FD Offers Higher Returns
Canara Bank is offering its highest interest rates under the 555-day special FD scheme.
Here are the current rates:
6.50% for general citizens
7.00% for senior citizens (above 60 years)
7.10% for super senior citizens (above 80 years)
For comparison, the 5-year FD offers:
6.25% for general citizens
6.75% for senior citizens
Additional interest benefits for super senior citizens are available only on the 444-day and 555-day special FD schemes.
How ₹2 Lakh Can Grow in This Scheme
If a general citizen invests ₹2 lakh in the 555-day FD:
Total maturity amount: ₹2,72,708
Fixed interest earned: ₹72,708
If a senior citizen invests ₹2 lakh:
Total maturity amount: ₹2,79,500
Fixed interest earned: ₹79,500
The higher interest rate for senior citizens makes a noticeable difference in overall returns.
Why FD Rates Have Changed Recently
It’s important to understand why FD rates are where they are today.
Last year, the Reserve Bank of India reduced the repo rate by 1.25%.
While this made loans such as home and car loans cheaper, it also impacted fixed deposit returns.
As the repo rate falls, banks usually lower FD interest rates too.
That’s why locking into a competitive rate at the right time can be beneficial.
If you’re looking for stable and predictable returns without market risk, these FD options from Canara Bank may be worth considering.