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If you’re on the lookout for a safe yet rewarding investment option, Canara Bank’s Special 666-Day Fixed Deposit (FD) might just be the perfect choice for you. Launched in 2025, this FD scheme promises attractive returns with a fixed tenure, making it an ideal option for conservative investors who prioritize safety but still want to make their money work harder.
Let’s dive into the details of the Canara Bank 666-Day FD and how it can help you grow your savings with minimal risk.
Why Choose Canara Bank’s Special 666-Day FD?
The 666-Day FD is designed for those looking to maximize their returns while keeping their principal amount safe. Here’s why it’s worth considering:
- Higher Interest Rate: Canara Bank offers a competitive interest rate for this FD, which is higher than what you’d typically get with regular FDs.
- Safety of Investment: Being a government-backed public sector bank, your investment is completely safe, making it ideal for risk-averse investors.
- Fixed Tenure: The 666-day period is neither too short nor too long, striking the perfect balance for investors looking for a medium-term option.
It’s perfect for those who want to lock in their money for a specific period without worrying about market fluctuations.
Benefits of Investing in Canara Bank’s Special FD
1. Attractive Returns
With a 6.75% interest rate (as of 2025) for the 666-day FD, this is one of the highest interest rates offered by Canara Bank. For senior citizens, the rate is even higher at 7.25%, giving them an additional benefit.
2. Government-Sponsored Safety
As a public sector bank, Canara Bank is regulated by the government and offers complete security for your deposits. This makes it an excellent choice for people who prefer safe and guaranteed returns over the volatility of the stock market or mutual funds.
3. Quarterly Interest Payouts
If you need regular income, the FD offers quarterly interest payouts, which is perfect for retirees or those looking for periodic income without touching the principal.
4. Premature Withdrawal Option
While FDs generally lock your money for a fixed period, Canara Bank allows premature withdrawals under certain conditions. However, it comes with a penalty, so it’s better to only opt for this if absolutely necessary.
5. Loan Against FD
Need quick liquidity? You can take a loan against your FD without breaking it. The loan amount can be up to 90% of your FD value, which means you can access cash in emergencies without losing your investment.
How to Open a Canara Bank Special 666-Day FD?
Opening a 666-day FD with Canara Bank is simple. Here’s a quick guide:
- Visit the Bank: Go to any Canara Bank branch or visit their online platform to initiate the FD.
- Deposit Amount: You can start with a minimum deposit of ₹1,000, with no maximum limit. The more you invest, the higher your returns.
- Choose Tenure: Select the 666-day tenure to take advantage of this special scheme.
- Provide KYC: Submit the necessary documents like PAN, Aadhaar, and proof of address for KYC verification.
- Receive Certificate: Once your FD is processed, you will receive a FD receipt or certificate.
For those who prefer digital banking, Canara Bank offers easy online FD opening via their Mobile Banking or Net Banking platform.
Comparing the Special FD with Regular FDs
| Feature | Special 666-Day FD | Regular FD |
|---|---|---|
| Interest Rate | 6.75% (6.25% for general) | Typically lower (around 5.5%-6%) |
| Tenure | 666 days | 1 year to 10 years |
| Eligibility | Open to all (with senior citizen benefit) | Open to all |
| Interest Payouts | Quarterly | Monthly, quarterly, or at maturity |
| Loan Against FD | Available | Available |
| Premature Withdrawal | Yes (with penalty) | Yes (with penalty) |
As you can see, the Special 666-Day FD offers a higher interest rate and a medium-term investment horizon that can be more beneficial compared to traditional FDs.
How Interest Is Calculated and Paid
The interest on the 666-Day FD is compounded quarterly. This means that interest is calculated on the principal and any interest accumulated, which allows your investment to grow faster than simple interest schemes.
- Quarterly Interest: You can choose to either reinvest the interest or opt for a payout. If you choose reinvestment, the interest gets added back to the FD, and you earn more interest on the compounded amount.
- Tax Deducted at Source (TDS): Keep in mind that if your interest income exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), TDS will be deducted. However, you can claim a refund when you file your taxes if your total income is below the taxable limit.
Things to Keep in Mind
- Penalty for Premature Withdrawal: Withdrawing the FD before 666 days will attract a penalty, which will reduce the interest rate applied to your FD.
- No Additional Investment: Once your FD is opened, you cannot add extra money to it. If you want to increase the amount, you’ll need to open a new FD.
- Tax Implications: Interest income from FDs is taxable. Consider this when calculating your returns.
Conclusion
The Canara Bank Special 666-Day FD is a fantastic option if you’re looking for a safe investment with attractive returns. Whether you’re saving for a specific goal or simply want to grow your savings in a low-risk environment, this FD offers the right balance of safety, liquidity, and higher-than-average returns. Plus, the additional perks like quarterly interest payouts and the option to take a loan against the FD make it an even more flexible and appealing choice.
If you’re interested in a secure, short-to-medium-term investment with solid returns, the Special 666-Day FD could be the perfect option to lock in your funds while earning high interest without the worry of market fluctuations.
FAQs
1. What is the interest rate for Canara Bank’s 666-Day FD?
The interest rate for the 666-Day FD is 6.75% for general customers and 7.25% for senior citizens.
2. Can I withdraw my Canara Bank FD before maturity?
Yes, premature withdrawal is allowed, but it will come with a penalty, which reduces the interest rate on your FD.
3. How can I open a 666-Day FD with Canara Bank?
You can open the FD by visiting a Canara Bank branch, or you can do it online through the bank’s mobile or internet banking platform.
4. What happens if my FD interest exceeds ₹40,000?
If your total FD interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS will be deducted. You can claim a refund if your total income is below the taxable limit.
5. Is Canara Bank’s 666-Day FD a good option for long-term savings?
Yes, it offers a higher interest rate than regular FDs and is a safe investment for medium-term savings, especially for those who prefer low-risk investments.