Canara Bank Tax Saving FD

Canara Bank offers a large array of FD schemes to meet the demands of a wide variety of investors. One of them is the Canara Bank Tax Saving FD, available to both regular and senior citizens. It is a type of term deposit scheme that falls under the general fixed deposit and Kamdhenu Deposit (FD reinvestment) scheme. 

The unique point about this scheme is that investors can claim tax exemption of up to ₹1.5 lakh in a financial year as per Section 80C of the Income Tax Act of 1961. It is highly suitable for salaried people as well as businessmen who fall under higher-income tax slabs. Keep reading to learn in detail about this scheme:

Account TypeCanara Bank Tax Saver Scheme
AmountMinimum: ₹100 (thereafter in multiples of ₹100)Maximum: ₹1,50,000 (per person)
TenureMinimum: 5 years (lock-in period)Maximum: No data available
Interest RateSenior Citizen: 7.20%General Public: 6.70%
Loan FacilityNot Available

Canara Bank Tax Saving Fixed Deposit Interest Rate                    

Canara Bank Tax Saving FD scheme is an excellent way to save some of our hard-earned money by not having to pay taxes on it. Additionally, it generates returns at a fixed interest rate, which can serve as a decent passive income source. Therefore, it is a good option for people who are looking for a scheme with a short lock-in period and guaranteed profits. Here is a table for the Canara Bank Tax Saver FD interest rate:

Type of InvestorTenureInterest Rate
General Citizen5 years6.70% p.a.
Senior Citizen5 years7.20% p.a.

How to Apply for Canara Bank Tax Saving Fixed Deposit?

Canara Bank offers the option to invest in their Tax Saver FD both online and offline. 


In case you wish to invest from the comfort of your home, you can make the best use of the online method. To do so, there are two different ways: 

1. Canara Bank Internet Banking Portal

Let us take a look at the steps for booking a Canara Bank Tax Saving FD scheme using the Internet banking portal:

Step 1: Visit the Canara Bank website and sign in to your NetBanking account.

Step 2: Visit the term deposit opening window and then select the ‘New Account’. 

Step 3: Here, you have to select the ‘Canara Bank Tax Saver scheme’. 

Step 4: After this, provide all the necessary information, like payment details and maturity instructions.

Step 5: Verify all the information and click on the ‘Open Deposit’ option.

Step 6: Hereafter, tap on ‘Confirm’ in order to authenticate the transaction. A confirmation message will pop up on the screen to signify account opening.

2.  Canara Bank Mobile App

Here are the steps you can follow to book a tax saver scheme with Canara Bank using the mobile banking app:

Step 1: Firstly, you need to download the Canara Bank app and log in.

Step 2: After this, select the ‘New Account’ option and choose the Canara Bank Tax Saver FD scheme.

Step 3: Enter all the essential details like payment mode, maturity information, etc.

Step 4: You can verify all the details you have provided by selecting the ‘Open Deposit’ option.

Step 5: After completing the verification, you need to click on ‘Confirm’ to authenticate your transaction.

Step 6: Hereafter, a confirmation message will pop up, stating that your fixed deposit has been successfully opened.


Apart from the online methods, you can also invest in the Canara Bank Tax Saving FD scheme by visiting the nearest branch of Canara Bank. Here are the steps that you can follow:

Step 1: Visit your nearest Canara Bank branch and ask for the application form for the Tax Saver scheme.

Step 2: Fill up all the details carefully and submit it along with the supporting documents and deposit amount.

Step 3: After successful processing, the bank official will offer you an FD receipt which is an official proof of your deposit. 

Canara Bank Tax Saver FD Eligibility Criteria

To invest in the Canara Bank Tax Saving FD scheme, you need to fulfil certain eligibility criteria. They are as follows:

  • Indian resident 
  • Individual
  • Karta of Hindu Undivided Family
  • Minor, along with an adult.
  • A joint account only with two adults. 

Documents Required for Canara Bank Tax Saver FD

Following is a list of all the documents you will require for booking a Canara Bank Tax Saving FD scheme:

  • Bank’s prescribed FD application form.
  • Proof of Identity according to the KYC norms, such as an Aadhaar card, voter ID, driving license, passport etc.
  • Proof of Address as per the KYC norms like an Aadhaar card, voter ID, passport, utility bills, bank statement etc.
  • Copy of PAN card.
  • Photograph of depositor (2 copies).
  •  Any other documents that might be applicable for the Karta of a HUF.

Terms and Conditions of the Scheme

Here are some of the terms and conditions in relation to the Canara Bank Tax Saving FD scheme:

  • TDS or tax deducted at source is applicable on the interest amount earned.
  • Nomination facility is available except for accounts opened on behalf of a minor, HUF, firm, company, association or body of individuals.
  • The Canara Bank Tax Saver scheme cannot be pledged as collateral/security for a loan against the FD facility.
  • You can receive monthly/quarterly interest payments on fixed deposits. If you invest under the Kamdhenu deposit scheme, the interest will be compounded quarterly.

Before you invest in Canara Bank Tax Saving FD, it is important to decide whether it will help you fulfil your financial goals. You also need to read the fine print carefully so that you do not end up getting any nasty surprises after investing your hard-earned money in the scheme.


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