Canara Bank, one of the major banking institutions of India has followed in the footsteps of the State Bank of India (SBI) and HDFC Bank in increasing the interest rate for consumers on making fixed deposits (FDs).
The bank will offer a higher interest rate to the customers from March 1, 2022, and this is good news for people who already have an account in the bank. Let’s check the interest rate on FDs that Canara Bank is offering to its customers.
Interest Rate on FDs for Canara Bank Customers
Customers who are looking to make a fixed deposit between 7 to 45 days are going to get 2.90% interest on their investment. Customers going for an FD between 46 to 90 days will get 3.90% interest on the principal amount and 3.95% for FD between 91 days to 179 days.
Any FD with the bank for between 180 days to a year will fetch 4.40% on the investment. The interest rate on FDs for a complete year is 5.1% and for two years is 5.15%.
For 2-3 years, the interest rate would go up to 5.20% and for 3-5 years, it will become 5.45%.
There’s also an option for customers who want to go for an FD for between 5 to 10 years which will fetch them 5.50% interest. Note that the interest we are talking about here is on the basis of per annum.
Banks such as IndusInd Bank, Bank of Baroda, IDBI Bank, and more too have hiked the interest rate on their FDs. This is a good development for people who are looking to invest their money into a safe basket for the long term. If you have a keen interest in FDs and are looking to invest money into it, opening a bank account in Canara Bank is probably a good option right now.