Public sector lender Canara Bank has changed the interest rates for fixed deposits (FDs) and savings accounts. The new rates came into effect on 7 August 2025 and are applicable to both general customers and senior citizens.
New FD Interest Rates
For callable FDs (with premature withdrawal facility) of less than ₹3 crore:
General customers: 3.25% to 6.50% interest per annum.
Maximum rate of 6.50% on FDs of 444 days.
Senior citizens: 3.25% to 7% interest per annum.
Maximum rate of 7% on FDs of 444 days.
Callable FDs allow premature or partial withdrawal, but as per rules effective from March 2019, a 1% penalty applies in such cases.
Interest Rate Table (Callable & Non-Callable FDs)
| Period | General Public (%) | Annual Yield (%) | Senior Citizens (%) | Annual Yield (%) | General Public (%) Non-Callable | Annual Yield (%) | Senior Citizens (%) Non-Callable | Annual Yield (%) |
|---|---|---|---|---|---|---|---|---|
| 7–45 days | 3.25 | 3.29 | 3.25 | 3.29 | NA | NA | NA | NA |
| 46–90 days | 4.25 | 4.32 | 4.25 | 4.32 | 4.35 | 4.42 | 4.35 | 4.42 |
| 91–179 days | 4.50 | 4.58 | 4.50 | 4.58 | 4.60 | 4.68 | 4.60 | 4.68 |
| 180–269 days | 5.50 | 5.61 | 6.00 | 6.14 | 5.60 | 5.72 | 6.10 | 6.24 |
| 270 days < 1 year | 5.75 | 5.88 | 6.25 | 6.40 | 5.85 | 5.98 | 6.35 | 6.50 |
| 1 year–1 year 3 months | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 444 days | 6.50 | 6.66 | 7.00 | 7.19 | 6.60 | 6.76 | 7.10 | 7.29 |
| >1 year 3 months–<2 years | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 2–<3 years | 6.25 | 6.40 | 6.75 | 6.92 | 6.35 | 6.50 | 6.85 | 7.03 |
| 3–<5 years | 6.25 | 6.40 | 6.75 | 6.92 | NA | NA | NA | NA |
| 5–10 years | 6.25 | 6.40 | 6.75 | 6.92 | NA | NA | NA | NA |
Savings Account Interest Rates
The bank has also reduced interest rates on savings accounts:
New rates: 2.55% to 4% (depending on account balance).
Earlier rates: 2.70% to 4%.
Why the Rates Changed
The change came a day after the RBI’s policy review on 6 August 2025, where the repo rate was kept unchanged at 5.55%.
This year, RBI has reduced the repo rate by a total of 100 basis points, prompting many banks to lower deposit rates.
Callable vs Non-Callable FDs
Callable FD: Allows premature withdrawal if required, but with a penalty (1% in most cases).
Non-Callable FD: No premature withdrawal allowed before maturity. If withdrawn, penalty charges apply.
Before opening an FD, customers should decide based on their liquidity needs.
If you want, I can also make this even cleaner by turning the long interest rate table into a side-by-side FD rate chart for quick reading. That will make it much easier for a reader to grasp.
