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Looking for a safe, short-term way to grow your money? Canara Bank’s new Fixed Deposit (FD) scheme for 2025 is turning heads with its 7.15% interest rate and a 310-day tenure. If you invest ₹2 lakh today, you could earn around ₹12,100 in interest and get your full amount back in less than a year.
Let’s break down what this scheme offers, how it works, and why it might be worth considering.
What Is Canara Bank’s New FD Scheme and Why It Matters
Canara Bank’s special FD scheme for 2025 is designed to give investors a solid return in under a year. With an interest rate of 7.15%, it offers better returns than most regular savings accounts or short-term deposits.
If you invest ₹2 lakh for 310 days, you’ll earn ₹12,100 in interest, which means your total maturity amount will be ₹2,12,100.
In today’s uncertain market, this FD provides a low-risk, guaranteed return, making it ideal for conservative investors or those looking for stability in their portfolio.
When Can You Invest in the Scheme?
As of November 2025, this FD scheme is active and open for new deposits. Canara Bank launched it earlier this year as part of its limited-period special FD offers.
If you haven’t invested yet, it’s still a good time interest rates are subject to change based on RBI policy moves, so locking in the 7.15% rate now could be a smart move before any future revisions.
How Canara Bank’s FD Scheme Works – Explained Simply
Here’s how it works in plain terms:
- Minimum Investment: ₹2,000 (but for the ₹12,100 example, we’re using ₹2 lakh).
- Interest Rate: 7.15% per annum.
- Tenure: 310 days (around 10 months).
- Payout Options: Choose between cumulative (interest paid at maturity) or non-cumulative (monthly/quarterly interest payouts).
Here’s a simple snapshot of your potential return:
| Investment Amount | Interest Rate | Tenure | Total Interest Earned | Maturity Amount |
|---|---|---|---|---|
| ₹2,00,000 | 7.15% p.a. | 310 days | ₹12,100 | ₹2,12,100 |
At maturity, you’ll receive your principal plus the accumulated interest perfect for short-term financial goals or emergency funds.
Why This FD Scheme Stands Out in 2025
Here’s why Canara Bank’s new FD is getting attention:
- Higher Returns: 7.15% is competitive, especially compared to other short-term deposits or small savings options.
- Short Tenure: Just 310 days less than a year so your money isn’t locked away for too long.
- Safety: Backed by a government-owned bank, your investment is secure and covered under the DICGC insurance (up to ₹5 lakh per depositor per bank).
- Guaranteed Returns: No market risk your maturity amount is fixed upfront.
For those who prefer stability over speculation, this is a solid pick.
Best Tips to Maximize Your Returns
Here are a few smart ways to make the most out of this FD scheme:
- Use FD Laddering: If you have more funds (say ₹5–10 lakh), split them into multiple FDs with different maturities. This keeps some funds liquid and others growing.
- Reinvest on Maturity: Once your FD matures after 310 days, reinvest it if the rates are still attractive. This can compound your returns over time.
- Choose Cumulative Option (if possible): You’ll earn slightly more since the interest compounds over the period.
- Link It With a Goal: Use it for short-term goals like vacation savings, a down payment, or an emergency fund.
Common Mistakes With FDs and How to Avoid Them
Even with a safe product like an FD, there are a few traps to avoid:
- Ignoring Premature Withdrawal Rules: If you withdraw before 310 days, you may lose some interest. Always check the penalty clause.
- Forgetting About TDS: Interest above ₹40,000 (₹50,000 for senior citizens) is subject to TDS. Submit Form 15G/15H if your total income is below taxable limits.
- Not Comparing Rates: Banks often revise FD rates every few months compare across banks before locking in.
The Latest Updates on Canara Bank FD Rates (As of November 2025)
Canara Bank currently offers a range of FD tenures from 7 days to 10 years with rates between 4% and 7.25% (for general public). Senior citizens get an extra 0.50%, meaning they could earn up to 7.65% on the same 310-day FD.
Always check the latest rates before investing via the official Canara Bank website or your nearest branch.
Conclusion
Canara Bank’s new 310-day FD at 7.15% is a great choice for anyone looking for a short-term, low-risk investment in 2025. By investing ₹2 lakh, you can earn ₹12,100 in interest all while keeping your money safe and accessible within the year.
With solid returns, flexibility, and guaranteed safety, this scheme is a smart addition to your savings plan, especially in today’s fluctuating financial climate.
FAQs
1. What is the interest rate of Canara Bank’s new FD in 2025?
The special FD scheme offers a 7.15% annual interest rate for a 310-day tenure.
2. How much interest will I get on ₹2 lakh?
You’ll earn around ₹12,100 in 310 days at 7.15% interest.
3. When is this scheme available?
As of November 2025, the scheme is active and open for investment.
4. Can I withdraw my FD before maturity?
Yes, you can withdraw early, but you may incur a penalty and reduced interest.
5. Is the interest from this FD taxable?
Yes. The interest earned is taxable as per your income tax slab. You can submit Form 15G/15H to avoid TDS if eligible.