Canara Bank hikes FD interest rates ahead of RBI monetary policy: Check new fixed deposit rates According to the bank's official website, the new rates will go into effect on April 5, 2023
Canara Bank, a public sector bank, has hiked interest rates on fixed deposits under Rs 2 crore . The new rates are effective from March 5, 2023, according to the bank's official website. The announcement was made ahead of the Reserve Bank of India’s monetary policy scheduled on April 5-6. The repo rate will be announced on April 6, 2023.The bank offers interest rates on callable deposits maturing in 7 days to 10 years that range from 4% to 7.25% for the general public and 4% to 7.75% for senior citizens after the revision.
Also read: Latest Bank Fixed Deposit (FD) Interest Rates in India for 2023
For non-callable deposits above Rs. 15 Lakh, the highest interest rate offered by the bank is 7.40% for regular citizens and 7.90% to senior citizens on tenure of 444 days. Bank provides 6.70% annual interest on the Canara Tax Saver Deposit general public. The interest rate mentioned also applies to recurring deposits.
CallableNon Callable (above Rs. 15 Lakh)Term Deposits (All Maturities)General PublicSenior CitizenGeneral PublicSenior CitizenRate of Interest (% p.a.)Rate of Interest (% p.a.) #Rate of Interest (% p.a.)Rate of Interest (% p.a.) #7 Days to 45 Days44NANA46 Days to 90 Days5.255.255.35.391 Days to 179 Days5.55.55.555.55180 Days to 269 Days6.256.756.36.8270 Days to less than 1 Year6.576.557.051 Year Only77.57.257.75444 Days7.257.757.47.9Above 1 Year to less than 2 Years6.97.47.157.652 Years & above to less than 3 Years6.857.357.17.63 Years & above to less than 5 Years6.87.3NANA5 Years & above to 10 Years6.77.2NANA
Note that Non-callable term deposits are deposits where premature withdrawal is not allowed.
Penalty
As per the bank website, “A penalty of 1.00% shall be levied for premature closure/part withdrawal/ premature extension of Domestic/NRO term deposits of less than Rs.2 Crore that are accepted /renewed on or after 12.03.2019.”
Overdue deposits
If a domestic term deposit matures and the funds are not paid, the amount that remains unclaimed with the bank will earn interest at the lower of the contracted rate of interest on the matured term deposit or the rate that is applicable to saving accounts.
Senior citizens
According to the Canara Bank website, “Additional interest of 0.50% for Senior Citizens is available for Deposits (Other than NRO/NRE and CGA Deposits) less than Rs. 2 Cr and with tenor of 180 Days and above.”
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This story originally appeared on: India Times - Author:Faqs of Insurances
