Woodkirk Stone
Canara Bank raised interest rates on term deposits by up to 25 basis points or 0.25%. The revised rates take effect March 1, 2022, according to Canara Bank’s website.
Canara Bank now offers a rate of 2.90% on term deposits with maturities between 7 and 45 days. Customers will now benefit from interest rates of 3.90% and 3.95% on term deposits maturing between 46 days and 90 days and between 91 days and 179 days, respectively.
On deposits maturing between 180 days and less than one year, the interest rate is fixed at 4.40%.
The interest rate on one-year term deposits was revised to 5.1%, while the rate on two-year term deposits was revised to 5.15%. The fixed deposit rates between 2 and 3 years would be 5.20% and between 3 and 5 years 5.45%. The 5-10 year fixed deposit slab has been revised to 5.50%.
The bank also announced that senior citizens will continue to benefit from a higher interest rate on fixed deposit investments. The bank offers 50 basis points or a higher interest rate of 0.5% on FD investments made by senior citizens.
The above interest rates are applicable to recurring deposits.
The bank’s “1111 days” retail term deposit program will offer an additional interest rate of 0.10% on top of the deposit interest rate. The interest rate offered on this deposit is 5.55%.
Before Canara Bank, several other public and private banks also raised interest rates on term deposits. These banks include State Bank of India (SBI), Bank of Baroda (BOB), HDFC Bank and ICICI Bank among others.