FD Rates: While people were busy preparing for Rakhi, this bank reduced its FD rates...

People were very excited about Rakshabandhan, and many people had also taken holidays. While people were planning to celebrate the festival of Rakhi, Canara Bank made a big change for its customers. The bank has changed the interest rates of fixed deposits (FD) and savings accounts. The new rates have come into effect from 8 August 2025 for FDs and from 1 August 2025 for savings accounts.

This change will affect FDs of less than Rs 3 crore. While now the interest on FD for general customers will be between 3.25% to 6.5%, senior citizens will get interest ranging from 3.25% to 7%. Talking about savings accounts, now interest of 2.55% to 4% will be available.

How much interest will be available on FD now?
The new interest rates will be applicable on callable fixed deposits of less than Rs 3 crore. For common citizens, these rates range from 3.25% to 6.5%. Whereas for senior citizens, the interest rates range from 3.25% to 7%.

Charges will be levied on premature closure.
If you break your FD prematurely, make a partial withdrawal, or extend it before maturity, you will have to pay a 1% penalty. This rule applies to domestic and NRO term deposits taken/renewed on or after March 12, 2019.

New interest in savings account
Canara Bank has also changed the interest rates of savings account. Now this rate will be decided according to the balance in your account. It will get interest ranging from 2.55 percent to 4 percent. Let's know who will get how much interest.

What will be the impact on customers?

These new rates will have a direct impact on your earnings. Lower interest on FD means that the amount received on maturity will be slightly less than before. Senior citizens will still have more benefits than general customers. The reduction in interest rates on savings accounts will also affect daily deposits.

This move by Canara Bank is in line with the current market trend of interest rates, as many banks have reduced their deposit rates in recent months. If you want higher returns, then apart from FDs, you can now look at mutual funds, bonds or other investment options.

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