How to Open Fixed Deposit in Canara Bank?

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Canara Bank is a famous public sector bank of India. It was founded in 1906 and got nationalized in 1969. With the current biggest move of amalgamation of Syndicate bank with Canara Bank in April 2020 Canara Bank has become the 4th biggest bank in India. With 10,391 branches and 112,829 ATMs Canara Bank is serving its customers all around India. All the existing customers of Syndicate Bank are now customers of Canara Bank.

What is Canara Bank Fixed Deposit?

Canara Bank Fixed Deposit is an investment plan provided by the Canara Bank to its customers. Under this scheme you have to deposit a lump sum amount (minimum Rs.1000) for the fixed time period (minimum 7 days to maximum 120 months) and generate the interest which is quite better than interest earned on a savings account. This amount of interest and deposit amount combined can be obtained at the time of maturity. Once the amount is fixed under the scheme it is locked for a fixed tenure with utmost safety which is completely unaffected by the market fluctuations. You can choose different mode of maturity for getting your interest amount like Monthly, Quarterly, Half-yearly or Annual intervals.

Benefits of Opening Fixed Deposit in Canara Bank

Canara Bank is the one of the most trustworthy bank when it comes to Fixed Deposit. With higher return, Lower minimum deposit limit, Flexible Tenure, Loan against FD facility etc Canara Bank offers many more facilities to their customers. Interest on Canara Bank FD is 5.50%, and for senior citizens it is 6%. Also the facility of loan against FD (upto 90%) is provided by the Canara bank to help its customers to fulfill their liquidity requirements without dissolving their FDs.

Required Documents for Opening Fixed Deposit in Canara Bank

These are some basic requirements decided by the Canara Bank for applying Fixed Deposit. You must have the below mentioned Documents before proceeding for Fixed Deposit.

  • Application : which is to be submitted in the Banks’ prescribed format.
  • PAN Card : A copy of PAN Card is must. If you do not have PAN Card then you have to submit Form 60 or 61.
  • Photograph of Account holder/s : 2 copies of photographs are needed to open Fixed Deposit Account.
  • Proof of Id and Address: Photo Id and Address Proof is needed as per KYC Norms.
  • Any other related documents:  For those who run a business must own additional documents as per the requirement like Proprietor ship concern, Company, HUF, Partnership Firm documents etc.

Methods of Opening Canara Bank Fixed Deposit

There are two methods of opening  Canara Bank Fixed Deposit.

1. Online Method

2. Offline Method

Let us discuss both the methods in details.

Online Method of Opening Canara Bank Fixed Deposit:

Opening Canara Bank Fixed Deposit Online is the hassle free and the most convenient method. By using this method customers can complete the whole process of Opening the Canara Bank Fixed Deposit while sitting anywhere anytime. This can be completed by following few steps mentioned below:

  1. Go to the Canara Bank‘s official website, click on the “Net Banking” and select “Net-Banking Retail”  and login via Username and Password.
  2. Click on the “Deposits” button displayed on the top navigation bar.
  3. A new left side menu will be opened. Among the provided options click on the “Deposits”  and Choose “Open Fixed Deposit” option from the list.
  4. Then you have to fill the all required details in the form. Firstly, click on the “FD Category” and  choose “Deposit Type“.
  5. Then in next step select the “Home Branch” or if you want to Open Canara Bank Fixed Deposit in other branch then choose “Other Branch“.
  6. Then select the “Account to be Debited
  7. After that you have to select “Amount“,”Months” and “Days” for your Fixed Deposit. Please note that you will always be suggested for minimum and maximum of these values during selection.
  8. Then you have to choose the “Maturity Instructions” in which you will have three options (Close on Maturity, Renew Principal and interest, Renew Principal and payout Interest) among which you can choose according to your need.
  9. At next step you have to opt “Nominee details” in which firstly you need to select between Yes or No option. If you choose “Yes” option then again you will find two options “Existing Nominee” and “New Nominee“. You can fill the details accordingly.
  10. Then you have to agree with “Terms and Conditions“.
  11. At last you have to enter your “Transaction Password” which is nothing but your Internet Banking password and the process of Opening Canara Bank Fixed Deposit will be completed.

Note: If you open the FD from the branch then you will not be able to close it online.

Offline Method of Opening Canara Bank Fixed Deposit:

In the offline mode of Opening Canara Bank Fixed Deposit you have to visit your Home branch and follow the below mentioned steps.

  • Firstly go to your Home branch and ask for the requirements of Opening Canara Bank Fixed Deposit.
  • Check the current rate of different fixed deposits and their tenure.
  • Select your preferred FD and ask for the Fixed Deposit Application Form from the bank officials.
  • Fill all the required details carefully.
  • Check the form and submit to the bank.
  • Collect the printed FD copy from the bank.

Others Facts to know before Opening Canara Bank Opening Account

Some other important facts which you always have to consider before opening your FD account are:

Eligibility Criteria for Canara Bank Fixed Deposit

In India, the below mentioned entities are entitled to open FD in India

  • Indian resident
  • Non residential Indian
  • Senior citizens
  • Companies
  • Partnership firms
  • Hindu Undivided Families
  • Individuals or joint investors
  • Societies or clubs
  • Minors
  • Sole proprietorship
  • Trusts
  • Charitable, Religious and Educational Institutions

Penalty For Premature Closure/ Part Withdrawal/ Premature Extention of  Fixed Deposit:

Premature closure or Part withdrawal or Premature extension of Domestic/NRO  fixed deposits which are less than Rs. 2 Crore and are accepted /renewed on or after March,12 2019 shall levied a penalty of 1.00%.

Taxability on Fixed Deposit

On interest, earned via Canara Bank’s Fixed Deposits, TDS (Tax Deducted at Source) is applicable. If the customer is having PAN card the Canara Bank will deduct TDS at 10% rate or in case when a customer doesn’t possess PAN card TDS will be deducted at rate 20%. Customer (under 60 years of age) can also escape from the deduction by submitting Form 15G to the Canara Bank , and submitting Form 15H n case if Senior Citizen.

Final Words

Canara bank is a trustworthy bank which facilitates its customers with different facilities and Fixed Deposit is among them. You can simply avail this facility by visiting bank or using Net Banking. Fixed Deposits give a chance to customers to earn a handsome amount of interest with utmost security and at any time this amount can be withdrawn which further makes it a suitable money saving scheme.

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