Ever had some money lying in your savings account and thought, “This isn’t doing much for me”? You’re not wrong. With most savings accounts still hovering around 3–4% interest, your money barely keeps up with daily expenses—let alone inflation.
That’s where the Canara Bank 310-Day FD 2025 quietly steps in. It’s a short-term fixed deposit that runs for just about 10 months and currently offers 7.15% interest. For conservative savers who want safety, predictability, and better returns without locking money away for years, this scheme feels like a smart middle ground.
What Is the Canara Bank 310-Day FD Scheme?
The Canara Bank 310-Day FD 2025 is a special short-term fixed deposit designed for investors who want:
- Better returns than a savings account
- A shorter lock-in than traditional long-term FDs
- Peace of mind backed by a government-owned bank
You can start with just ₹1,000, and there’s no upper limit. Whether you’re a salaried professional, a retiree, an NRI, or someone building an emergency fund, this product is open to almost everyone.
And yes—your deposit is protected under DICGC insurance up to ₹5 lakh, which adds a strong safety net.
Why the 310-Day FD Makes Sense in 2025
Think about the world we’re living in right now. Prices are rising. Markets feel jumpy. And most of us just want our money to stay safe without sitting idle.
Here’s why this 10-month FD hits the sweet spot:
- Inflation is around 5–6%. At 7.15%, your returns actually stay ahead.
- It beats savings accounts by nearly double.
- You don’t have to commit for 3 or 5 years.
- Senior citizens get an extra 0.5%, pushing their rate to 7.65%.
For a young professional saving for a wedding, a parent building an education fund, or a retiree protecting capital—this tenure feels just right.
Current Interest Rates & Payout Options
As of November 2025, here’s how the scheme stacks up:
- General public: 7.15% per year
- Senior citizens: 7.65% per year
- Compounding: Quarterly
You also get flexibility in how you receive your returns:
- Cumulative option: Get everything at maturity as a lump sum
- Non-cumulative option: Monthly or quarterly payouts for regular income
Another small but useful detail—no TDS is deducted if your total interest stays below:
- ₹40,000 for regular investors
- ₹50,000 for senior citizens
That keeps more money in your pocket.
How to Open a Canara Bank 310-Day FD
This part is refreshingly simple.
You can invest through:
- Canara Bank mobile app
- Net banking
- Any of the 9,700+ branches across India
You’ll just need:
- Aadhaar
- PAN
- The deposit amount
Once invested, you’ll get SMS alerts, online tracking, and automatic maturity credits to your account.
Need cash before maturity? You can withdraw after 7 days, though a 1% penalty applies. You can also take a loan of up to 90% of the FD value, which is handy during emergencies.
What Kind of Returns Can You Expect?
Here’s a practical idea of what your money could grow into (approximate, pre-tax):
- ₹1,00,000 → ₹1,21,550
- ₹2,00,000 → ₹2,43,100
- ₹5,00,000 → ₹6,07,750
- ₹2,00,000 (Senior Citizen) → ₹2,44,200
These numbers make it clear—this FD is built for stable, predictable growth.
Tax & Safety: What You Should Know
Yes, FD interest is taxable based on your income slab. But if you qualify, Form 15G or 15H can help you avoid TDS.
On the safety side:
- Canara Bank is government-owned
- Deposits are insured up to ₹5 lakh
- The bank consistently maintains strong credit trust in the market
For risk-averse investors, that combination is hard to beat.
Smart Ways to Use the 310-Day FD
Here’s how many savvy investors are using this scheme:
- Splitting money into multiple small FDs
- Reinvesting at maturity for compounded growth
- Parking emergency funds safely
- Creating short-term income streams via non-cumulative payouts
This turns a simple deposit into a flexible financial tool.
Final Thoughts: Is the Canara Bank 310-Day FD Worth It in 2025?
If your goal is to protect your money, earn steady returns, and stay liquid within a year, the Canara Bank 310-Day FD 2025 checks all the right boxes. It doesn’t promise flashy profits. What it offers instead is something far more valuable—predictable growth with strong safety.
In uncertain times, that’s exactly what many investors are looking for.
Frequently Asked Questions
1. Is the Canara Bank 310-Day FD safe in 2025?
Yes. Canara Bank is a government-owned bank, and all deposits are insured up to ₹5 lakh under DICGC. This makes the 310-day FD one of the safer short-term investment options for conservative investors.
2. Can I withdraw the 310-Day FD before maturity?
Yes, premature withdrawal is allowed after 7 days. However, a 1% penalty on the applicable interest rate will be charged. You can also take a loan against the FD up to 90% of the deposit value if you need liquidity.
3. Is the interest earned on this FD taxable?
Yes, FD interest is taxable as per your income slab. However, if your total annual interest stays below ₹40,000 (₹50,000 for seniors), no TDS is deducted. Eligible investors can submit Form 15G or 15H.
