Canara Bank FD Scheme : In a significant move to attract investors and depositors looking for safe yet rewarding investment avenues, Canara Bank, one of India’s leading public sector banks, has recently launched a new fixed deposit scheme with a unique tenure of 456 days. This scheme is being promoted as a “Dhaakad” or “Powerful” FD, and it truly lives up to its name, offering attractive interest rates and secure returns to both regular and senior citizens.
Let us explore the details of Canara Bank’s 456-day FD scheme and understand why it is being considered one of the best short-to-medium-term investment options currently available in the Indian banking sector.
Canara Bank FD Scheme : Overview of the 456-Day Dhaakad Fixed Deposit Scheme
Canara Bank’s new fixed deposit scheme is designed with a specific tenure of 456 days, slightly over 15 months. This makes it an ideal choice for individuals who are looking for investment options that are not too long-term but still offer more than savings account interest.
The primary highlights of this scheme include:
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Tenure: 456 Days
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Interest Rate for Regular Citizens: 7.25% per annum
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Interest Rate for Senior Citizens: 7.75% per annum
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Minimum Deposit Amount: ₹1,000
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Maximum Limit: No upper limit
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Type of Interest Payment: Can be cumulative or non-cumulative (monthly/quarterly/half-yearly payouts or reinvestment)
Attractive Interest Rates
One of the biggest selling points of this FD scheme is the bumper interest rate being offered by Canara Bank. At a time when market-linked instruments are prone to volatility, a fixed return of 7.25% for regular citizens and 7.75% for senior citizens is quite appealing.
These interest rates are significantly higher than those offered on regular savings accounts, and even higher than many other bank FDs for similar tenures. With inflation eating into savings, a rate above 7% ensures that your money not only stays safe but also grows in real terms.
Canara Bank FD Scheme : Illustration: Returns on ₹3,00,000 Investment
To give you a clearer picture, let’s consider the example of an individual investing ₹3,00,000 in this 456-day FD scheme.
For Regular Citizens (Interest Rate: 7.25%)
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Principal Amount: ₹3,00,000
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Tenure: 456 Days (Approximately 1.25 years)
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Interest Rate: 7.25% per annum
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Maturity Amount: ₹3,22,918
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Total Interest Earned: ₹22,918
This return is completely risk-free and assured, making it ideal for conservative investors.
For Senior Citizens (Interest Rate: 7.75%)
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Principal Amount: ₹3,00,000
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Tenure: 456 Days
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Interest Rate: 7.75% per annum
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Maturity Amount: ₹3,23,825
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Total Interest Earned: ₹23,825
As seen above, senior citizens get an additional ₹907 due to the higher interest rate, which is a part of Canara Bank’s senior citizen-friendly policy.
Canara Bank FD Scheme : What Makes This FD Scheme a Great Investment Option?
1. Higher Than Average Returns
Canara Bank’s offering of 7.25% to 7.75% is among the best in the current banking landscape, especially for a tenure of just 456 days. It offers a safer alternative to mutual funds or stock markets without the associated risks.
2. Safe and Secured Investment
As a government-owned bank, Canara Bank provides a high level of trust and security. Your investment is protected under the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per individual per bank.
3. Flexible Payout Options
You can choose to receive interest at regular intervals (monthly/quarterly) or go for cumulative returns where interest is reinvested and paid along with the principal at maturity.
4. No Market Dependency
Unlike stock markets or mutual funds, returns from fixed deposits are not impacted by market volatility. It’s an ideal option for risk-averse investors or those nearing retirement.
Canara Bank FD Scheme : Who Should Invest in Canara Bank’s 456-Day Dhaakad FD Scheme?
This FD scheme is suitable for:
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Individuals with idle funds for around 15 months
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Those who want higher-than-savings-account interest with minimal risk
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Retirees and senior citizens looking for regular, safe income
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Investors who want to diversify away from market-linked investments
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First-time investors or conservative investors looking for stability
Taxation on FD Returns
It is important to note that interest earned on fixed deposits is taxable as per the investor’s applicable income tax slab. However, senior citizens can claim deductions up to ₹50,000 under Section 80TTB of the Income Tax Act. Also, if your total interest income across all FDs in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), TDS (Tax Deducted at Source) will be applicable.
How to Invest in the 456-Day FD Scheme?
Investing in this FD scheme is easy and can be done through multiple channels:
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Canara Bank Branch: Visit the nearest branch and fill out the FD application form.
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Online Banking: Log in to your Canara Bank Net Banking account and navigate to the “Fixed Deposits” section.
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Mobile App: Use the Canara Bank mobile app to create an FD within minutes.
You will need the following documents:
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Identity proof (Aadhaar/PAN)
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Address proof
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Passport-sized photograph
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Bank account details
Conclusion
Canara Bank’s 456-day Dhaakad Fixed Deposit Scheme is an excellent opportunity for investors looking for guaranteed returns, short-term tenure, and high interest rates. With a competitive rate of 7.25% for general public and 7.75% for senior citizens, this FD stands out as a solid option in the current economic environment.
In times of financial uncertainty and fluctuating markets, such fixed-income instruments offer peace of mind and assured growth. If you have surplus funds lying in your savings account or are looking for a short-term parking option with better returns, Canara Bank’s new FD scheme is worth considering.
