Fixed Deposit Interest Rates: Following the recent repo rate cut by the Reserve Bank of India (RBI), Canara Bank, one of the country’s largest banks, has revised its fixed deposit (FD) interest rates. Under the new rates, the bank is offering better returns on short and medium-term FDs. Senior citizens, in particular, are now receiving up to 7% interest on select callable FDs.
It’s worth noting that FD investments are still considered a safe option, which is why many senior citizens prefer them for their savings and future planning. Let’s look at the interest offered on Canara Bank’s 555-day FD.
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Canara Bank FD Rates
For a 555-day FD, regular customers receive 6.50% interest, while senior citizens get up to 7%. For a 444-day FD, the interest rate is 6.45% for regular customers and 6.95% for senior citizens. For FDs with a tenure of more than one year, regular customers receive 6.25% interest, and senior citizens get 6.75%. This means that short and medium-term FDs are now offering better returns compared to long-term FDs.
How to Calculate FD Returns
You can use the online FD calculator on Canara Bank’s website, canarabank.bank.in. Simply enter the deposit amount, tenure, and interest rate. The calculator will easily show you the maturity amount and the total interest earned. For example, if you invest ₹1 lakh for 1 year at 7% interest, you will receive approximately ₹1.07 lakh at maturity.
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What This Means for FD Investors
In this era of declining interest rates, banks are offering short and medium-term FD options such as 400-555 days. This is beneficial for investors, especially senior citizens, as these tenures are now offering higher returns compared to longer-term FDs of 5 years or more.