Canara Bank FD Rates 2026: Senior Citizens Get Up to 7 Percent

In case you depend on fixed deposits for getting assured returns, here is an important piece of information for you. Canara Bank, one of the premier public sector banks in the country, has modified their FD interest rates from January 5, 2026, as it provides lucrative returns to customers, especially senior citizens, amidst an environment of a drop in interest rates.

Despite the Reserve Bank of India reducing the repo rate by an accumulated 125 basis points to 5.25%, many banks, such as Canara Bank, have reduced deposit rates. Nevertheless, Canara Bank still has attractive terms for fixed Deposits with special tenure rates, which generate higher returns. It is important to examine the recent update of Canara Bank’s FD rates and their comparison with other banks.

Canara Bank FD Rates 2026

Canara Bank has announced revisions to its fixed deposit rate structure. Across the board, all fixed deposit tenures offer an increased interest rate. Specifically, the revised interest rates for Special Tenure Fixed Deposits offer superior returns than what would normally be available through a Regular Fixed Deposit. In addition, specific FD interest rates have been made available to those who are over the age of 60 years (senior citizens). 

For the Special 555-day FD, the interest rate is 6.50% for all customers, with an option for senior citizens to receive a higher interest rate of 7.00%, which is the highest callable interest rate offered by the Bank. For the Special 444-day FD, the interest rate is 6.45% for general customers and 6.95% for senior citizens. All callable Fixed Deposits with a fixed term of one year or more will earn interest at an interest rate of 6.25% for general customers and 6.75% for senior citizens. 

Through the introduction of these special deposit tenures, investors will be able to gain a higher rate of return than they would have otherwise received, even though overall interest rates on Fixed Deposits are declining.

Why Are FD Rates Being Revised?

Over the previous eighteen months, the Reserve Bank of India (RBI) has significantly relaxed its monetary policy by lowering the repo rate by approximately 125 basis points (bps). The December 2025 reduction of 25 bps reduced the repo rate to 5.25% and makes it inexpensive to borrow money for both consumers and businesses; therefore, banks have responded accordingly with regards to lending and deposit rates.

Although interest rates have fallen significantly over the past two years, Canara Bank's fixed deposit (FD) options are still considered appealing, relative to many of its competitors especially with respect to their special tenure FD's and their FD's for seniors, Who can still receive an attractive return on some of their Long Tenure FD's. Canara Bank continues to maintain investor confidence through their ability to provide attractive rates on select tenures and safe and stable investment options.

Why Senior Citizens Benefit the Most

Canara Bank provides added interest rates to senior citizens. This makes Canara Bank one of the best choices for senior citizens that depend on a fixed income. Senior citizens can earn up to 7% on the Canara Bank 555-Day Fixed Deposit Accounts and will receive an additional 0.50% in interest for other accounts, which gives them a better and more secure rate of return. In addition to these benefits, Canara Bank has the backing of the reliability and safety of being a public sector bank. These advantages also coincide with Canara Bank's Safe Hai, Toh Sahi Hai campaign, which positions Fixed Deposit Accounts as a safe and dependable means of investment.

Canara Bank FD Rates Compared with Other Banks?

In January 2026, several banks changed the rates of their fixed deposit offers to reflect a wider range of returns depending on the bank's policy and the customer type. Bank of Baroda's new fixed deposit rate offers 3.50% - 6.45% for the general public; up to 7.00% for senior citizens and up to 7.05% for super senior citizens. 

Bank of Maharashtra's new fixed deposit rate offers 2.60% - 6.65% for the general public, plus an additional 0.50% for senior citizens. The Bank of Maharashtra also has a 400-day fixed deposit offering 6.65% for general customers and 7.15% for seniors. Tamilnadan Mercantile Bank's 456-day fixed deposit rate is 7.10% for the general public and 7.50% for senior citizens. 

On traditional fixed deposits, Jana Small Finance Bank's fixed deposit rates are 7.50% and up to 8.00% for senior citizens on 2-3-year terms. Usually, modest financing institutions provide a better interest rate on fixed deposits, yet Canara Bank remains a great choice for investors wanting a secure and consistent investment with appealing yields.

Investors Still Prefer Canara Bank FDs

Although some private banks and tiny finance firms are providing higher interest, many consumers still prefer Canara Bank's fixed deposits since:

1. Powerful government backup: Having the Govt. of India as a major stakeholder and being a public sector bank lends Canara Bank another degree of trust and safety.
2. robust financial status: Net profit for Q3 FY25 was announced by the bank to be ₹4,104 crore, a 12% rise. This points to remarkable financial performance. Moreover, it is a favorable sign of their growing financial situation.
3. Great trust with senior citizens: For elderly people looking for dependable fixed-income sources, the special interest advantages and reputation also act as a magnet.
4. A wide network of branches and digital banking services lets consumers manage their deposits and access their accounts. This bank has thousands of branches.

Together, all these elements help Canara Bank FDs be the chosen safe haven of return-oriented investors.

Should Invest in Canara Bank FD?

Those who have reached retirement age and require a dependable source of fixed income such as government bonds should consider investing in a long-term deposit with Canara Bank. This long-term deposit will earn you much higher interest rates than on other fixed-income CDs while being held in a government-owned financial institution. This type of deposit should be taken with some caution because you will not be able to redeem your interest until the end of the deposit period.

Smart Time to Lock in Canara Bank FD Rates

According to the most recent Canara Bank FD rates update, there are still opportunities for good returns on your investment in FDs even in this low interest environment. This is especially true of the higher rates being offered by Canara Bank for special tenure deposits. Canara Bank is an excellent choice for those looking for safety, stability and predictable income because of the addition of both the Sr. Citizen and regular rates.

If you are considering investing in Canara Bank's special FDs, be sure to act quickly to lock in the higher rates before the next set of rate changes occur.

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