Canara Bank FD Scheme : When the Reserve Bank of India (RBI) reduces the repo rate, loan interest rates also go down. However, this also leads to a reduction in the interest rates offered on Fixed Deposits (FDs). This year, the repo rate has been cut by 1.00 percent, due to which FD returns have slightly decreased.
Despite that, several banks are still offering attractive interest rates on fixed deposits. One such public sector bank is Canara Bank, which offers interest rates ranging from 3.25% to 7.10% on its FD schemes.
At Canara Bank, customers can start a fixed deposit for a minimum tenure of 7 days.
Canara Bank Offers Up to 6.75% Interest on a 5-Year FD
Canara Bank provides 6.50% interest for regular citizens, 7.00% for senior citizens, and 7.10% for super senior citizens under its special 444-day FD scheme.
For a 5-year FD, regular customers get 6.25%, while senior citizens earn 6.75% interest per annum.
Under the FD scheme, you receive a fixed return after the maturity period — your money grows steadily without market fluctuations.
Being a government-owned bank, Canara Bank ensures that your investment is completely safe.
Earn ₹39,750 Interest on ₹1 Lakh Deposit in 5 Years
If you invest ₹1 lakh in a 5-year FD at Canara Bank:
- A regular citizen will get a total of ₹1,36,354 at maturity, which includes ₹36,354 as fixed interest.
-
A senior citizen will receive a total of ₹1,39,750, including ₹39,750 as fixed interest.
Thus, senior citizens enjoy higher returns due to an additional interest rate benefit.
Union Bank of India FD Scheme Benefits 2025
Like Canara Bank, Union Bank of India (UBI) also offers attractive Fixed Deposit (FD) interest rates for both regular and senior citizens. As of 2025, the bank provides flexible tenure options, high safety, and guaranteed returns.
Union Bank FD Interest Rates (Approx. 2025)
| Category | Tenure | Interest Rate |
|---|---|---|
| Regular Citizens | 7 days – 10 years | 3.00% – 7.00% |
| Senior Citizens | 7 days – 10 years | 3.50% – 7.50% |
(Note: Rates may vary slightly depending on the deposit amount and latest RBI policies.)
Key Benefits of Union Bank FD Scheme
-
Flexible Tenure Options:
Customers can open an FD for as short as 7 days or as long as 10 years, depending on their savings goals. -
Higher Interest for Senior Citizens:
Senior citizens receive an additional 0.50% interest rate over the standard rates.
-
Auto-Renewal Facility:
FDs can be automatically renewed upon maturity, ensuring continuous earnings. -
Loan Against FD:
Customers can avail up to 90% of their FD amount as a loan, making it a secure and convenient financial backup. -
Safe Investment:
Being a government-owned bank, deposits in Union Bank are highly secure and insured under DICGC up to ₹5 lakh per depositor. -
Premature Withdrawal:
You can withdraw your FD before maturity with a small penalty, giving liquidity flexibility.
-
Monthly/Quarterly Interest Payouts:
Ideal for retirees — interest can be credited monthly or quarterly for regular income.
Example Calculation
If you invest ₹1 lakh for 5 years at 7.00% p.a.,
you’ll get approximately ₹1,40,255 on maturity.
Senior citizens at 7.50% interest will receive about ₹1,43,586 — that’s a gain of ₹43,586 on a ₹1 lakh deposit.
Final Thoughts
Both Canara Bank and Union Bank of India offer safe, stable, and government-backed FD schemes.
If you’re a senior citizen or a conservative investor seeking guaranteed returns, these FDs are a solid option for wealth growth with zero risk.
