Ever had extra cash sitting in your savings account and felt it was just… wasting away? I hear this all the time. People want safety, but they also want their money to do something. That’s exactly where Canara Bank’s 191-Day FD 2025 quietly steps in and does the job.
This short-term fixed deposit locks your money for about six months and pays much better than a regular savings account. With a minimum deposit of just ₹1,000, no upper limit, and strong government-backed protection, it’s designed for everyone—from first-time earners to cautious retirees. And yes, in 2025’s unpredictable economy, that kind of stability feels comforting.
Why the Canara Bank 191-Day FD 2025 Makes Sense Right Now
Here’s the thing—markets go up, markets go down. But your emergency fund, short-term savings, or surplus cash doesn’t need that rollercoaster ride.
The Canara Bank 191-Day FD 2025 offers:
- Short lock-in of just over 6 months
- Up to 6.5% interest for general investors
- 7% interest for senior citizens
- Zero market risk
- Government-backed safety up to ₹5 lakh (DICGC insurance)
If you’re waiting to invest in real estate, mutual funds, gold, or even your child’s education plans, this FD works like a parking slot for your money—safe, calm, and productive.
Interest Rates and How Your Money Grows
As of late 2025, the interest structure looks like this:
- General investors: 6.5% per annum
- Senior citizens: 7.0% per annum
The interest is compounded quarterly, which quietly boosts your returns without you needing to do anything.
You also get two simple options:
- Cumulative FD: Interest paid at maturity (best if you don’t need monthly income)
- Non-cumulative FD: Interest paid monthly/quarterly for regular cash flow
If your total annual interest stays below:
- ₹40,000 (general)
- ₹50,000 (seniors)
then no TDS is deducted, provided your PAN is updated.
What Will You Actually Earn? (Realistic Snapshot)
Let’s put numbers to it. Here’s an approximate idea of maturity values for 191 days:
- ₹1,00,000 at 6.5% → ₹1,03,250 (Interest ≈ ₹3,250)
- ₹2,00,000 at 6.5% → ₹2,06,500 (Interest ≈ ₹6,500)
- ₹5,00,000 at 6.5% → ₹5,16,250 (Interest ≈ ₹16,250)
- Senior Citizen ₹2,00,000 at 7% → ₹2,06,850 (Interest ≈ ₹6,850)
Returns are pre-tax and approximate, but they clearly beat idle savings money.
How to Open a Canara Bank 191-Day FD in 2025
Opening this FD is refreshingly simple. You can do it in three ways:
- Visit any Canara Bank branch
- Use net banking
- Use the Canara Bank mobile app
All you need:
- Aadhaar
- PAN
- An active Canara Bank account (for online bookings)
You can choose:
- Auto-renewal
- Nomination
- Interest payout mode (cumulative or non-cumulative)
Tracking is easy through SMS alerts and app updates. No hidden fees. No paperwork drama.
Premature Withdrawal, Loan, and Flexibility
Life happens. And Canara Bank doesn’t punish you harshly for it.
- Premature withdrawal is allowed after 7 days
- A small 1% penalty on the applicable interest is charged
- You can also take a loan up to 90% of your FD value
- Loan interest is usually just 1–2% above FD rate
That means your money is working—and still accessible in emergencies.
Tax Rules You Should Know
Let’s clear up a common confusion.
- Interest from this FD is fully taxable as per your income slab
- It does NOT qualify under Section 80C
- If TDS is cut and your income is below the taxable limit, you can claim a refund
- Seniors also get higher exemption limits, which reduces tax pressure
Pair this FD with tax-saving instruments like ELSS, PPF, or tax-saver FDs for smarter planning.
Safety: How Secure Is Your Money, Really?
This is where Canara Bank shines.
- It’s a public sector bank
- Your deposits are insured up to ₹5 lakh per person under DICGC
- Nomination facilities protect your family
- Online renewals ensure continuity without branch visits
In simple terms—you’re not just chasing returns. You’re buying peace of mind.
Who Should Consider the Canara Bank 191-Day FD 2025?
This FD is especially useful if you are:
- Building an emergency fund
- Waiting between two big investments
- A senior citizen seeking safe income
- A professional with short-term surplus cash
- Someone who hates market volatility (no judgment—it’s not for everyone)
Final Thoughts
The Canara Bank 191-Day FD 2025 hits a sweet spot—short duration, solid returns, and strong safety. It’s not for aggressive wealth creation. It’s for stability. For quiet growth. For stress-free money.
If your goal is to protect capital and earn better-than-savings returns in just six months, this FD deserves a serious look.
Frequently Asked Questions
1. What is the current interest rate on Canara Bank 191-Day FD in 2025?
As of late 2025, the Canara Bank 191-Day FD offers 6.5% per annum for general customers and 7% for senior citizens. The interest is compounded quarterly and paid either at maturity or periodically, depending on the option you choose.
2. Can I withdraw my 191-day FD before maturity?
Yes, premature withdrawal is allowed after 7 days. However, a 1% penalty on the applicable interest rate is charged. While the returns reduce slightly, your money remains accessible in case of emergencies.
3. Is the Canara Bank 191-Day FD safe for large investments?
Yes, deposits are protected under DICGC insurance up to ₹5 lakh per depositor. Since Canara Bank is a public sector bank, it offers strong safety for conservative investors.
