FD Investment : After the State Bank of India (SBI), now Canara Bank has also cut the interest rates received on fixed deposits (FD). The revised rates have become effective, which will now give customers a little lower returns on FD than before.
According to new rates
The interest rate on 1 year FD has now come down to 6.85%.
FD on 2 -year tenure will get an annual interest of 6.90%.
3 -year fixed deposit will get a return of 7.00 percent.
The interest rate has been fixed at 6.70% on 5 years of FD.
At the same time, the bank is also giving a return of 7.00% on a special FD scheme of 444 days.
Senior citizens (Senior Citizens) are receiving a maximum of 7.50% interest on some schemes.
SBI has already changed interest rates
Prior to Canara Bank, the country’s largest public bank SBI also cut FD rates by up to 0.20% in the month of May.
Now SBI is getting only 6.50% interest on a period of 1 year. These rates have been implemented since 16 May 2025. It is noteworthy that SBI had earlier also changed the rates on 15 April.
- Decide the duration of fd wisely
If you break the FD in the middle without a plan, the bank can give you less interest by paying penalty. In most cases it is a penalty of up to 1%, which can reduce total returns.
- Do not put all the money in a fd
If you have ₹ 10 lakh for investment, instead of putting all the money in the same FD, divide it into small FD. For example, make 8 FD of 1 lakh and 4 FD of 50 thousand. If needed, some FD can be withdrawn by breaking money, the rest of the investment will be safe.
- Choose 5 year old FD to save tax
Tax Saving FD, which is 5 years duration, but you can avail tax deduction of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act. This special feature is better for those who want to save tax as well as safe investment.
