In an economy where market swings make investors cautious, Canara Bank’s 191-Day Fixed Deposit scheme for 2025 has emerged as a reliable choice for those who prefer safety with steady returns. Designed for a short tenure of just over six months, this FD is ideal for salaried professionals, retirees, and anyone with surplus funds looking for assured growth without long-term lock-in.
Backed by DICGC insurance cover of up to Rs 5 lakh, this scheme ensures complete capital protection while delivering better returns than most savings accounts. For conservative investors, it strikes the right balance between liquidity, security, and profitability.
Latest Canara Bank 191-Day FD Interest Rates 2025
As of December 2025, Canara Bank offers:
- 6.50% per annum for general customers
- 7.00% per annum for senior citizens (60+), with a 0.50% additional benefit
These rates apply to deposits up to Rs 3 crore, making the scheme accessible to both small and mid-level investors. Interest is compounded quarterly, which helps maximize earnings even over a short period. Since interest rates can change based on RBI policy decisions, investors are advised to lock in when rates are favorable.
How Much Can You Earn?
Interest on the Canara Bank 191-Day FD is calculated daily and compounded quarterly. It can be paid:
- At maturity (cumulative option), or
- Quarterly (non-cumulative option)
For example:
- A Rs 2 lakh deposit at 6.50% earns around Rs 6,500, maturing at approximately Rs 2,06,500
- Senior citizens at 7.00% earn nearly Rs 7,000, reaching about Rs 2,07,000
TDS applies if total annual interest across all FDs exceeds Rs 40,000 (Rs 50,000 for seniors). Using Canara Bank’s FD calculator helps plan accurately.
Eligibility and How to Open the FD
Opening the Canara Bank 191-Day FD 2025 is simple:
- Minimum deposit: Rs 1,000
- No upper investment limit
- Available for residents and NRIs (via NRE FD)
- Requires a Canara Bank savings account
You can open the FD:
- Online via net banking or mobile app
- Offline by visiting any branch with PAN and ID proof
A 1% penalty applies for premature withdrawal after 15 days. However, depositors can also take loans up to 90% of the FD value for emergency needs.
Key Benefits of Canara Bank 191-Day FD
- Guaranteed, risk-free returns
- Short tenure with high liquidity
- Suitable for emergency funds and short-term goals
- Higher interest for senior citizens
- Backed by a trusted PSU bank network
- Optional tax-saving variants under Section 80C
Why Invest in 2025?
With inflation affecting savings and market volatility discouraging risky bets, the Canara Bank 191-Day FD 2025 offers predictable income with flexibility. It’s perfect for parking idle funds safely while earning better-than-savings returns in under seven months.
Frequently Asked Questions (FAQs)
What is the interest rate for Canara Bank 191-Day FD in 2025?
The interest rate is 6.50% for the general public and 7.00% for senior citizens as of December 2025.
Is premature withdrawal allowed?
Yes, premature withdrawal is allowed with a 1% penalty after 15 days from booking.
Is this FD covered under insurance?
Yes, deposits are insured up to Rs 5 lakh under DICGC.
