Canara Bank has introduced an exceptional 310-day fixed deposit scheme designed to offer investors the ideal combination of security and attractive returns. This specially crafted FD scheme provides an excellent opportunity for risk-averse investors seeking guaranteed returns.
With fixed deposits being one of the most trusted investment options in India, this 310-day scheme stands out for its optimal tenure and competitive interest rates. The scheme is particularly attractive for investors looking to park their surplus funds for less than a year while earning steady returns.
For those considering a ₹2,00,000 investment, this scheme offers predictable growth without market volatility risks, making it ideal for conservative investors and senior citizens.
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Why Choose the 310-Day FD Scheme?
The 310-day tenure strikes the perfect balance between liquidity and returns. Unlike longer-term deposits, this scheme doesn’t lock your money for years, yet offers better rates than shorter-duration FDs.
This tenure is particularly suitable for investors who want to align their investments with specific financial goals or those expecting better investment opportunities within a year.
The scheme provides guaranteed returns backed by Canara Bank’s strong financial position and government backing, ensuring complete safety of your principal amount.
For systematic financial planning, the 310-day period allows investors to reinvest or redirect funds based on changing market conditions and personal requirements.
Current Interest Rates and Returns
The interest rate offered on Canara Bank fixed deposits range between 4.00% p.a. and 7.40% p.a for the general public while for senior citizens, it ranges between 4.00% p.a. and 7.90% p.a. For the 310-day tenure, the applicable rate would be in the medium-term category.
Based on current market rates, the 310-day FD typically offers around 6.50% per annum for general customers. The scheme offers an additional 0.50% interest for senior citizens, bringing their rate to approximately 7.00% per annum.
For a ₹2,00,000 investment, this translates to attractive returns over the 310-day period. The interest is calculated on a daily basis and paid according to the chosen payout frequency.
The returns are completely tax-exempt up to ₹40,000 under Section 80TTA for savings account holders, making it even more attractive for retail investors.
Investment Calculation Breakdown
| Investment Details | Amount/Rate |
|---|---|
| Principal Amount | ₹2,00,000 |
| Tenure | 310 days |
| Interest Rate (General) | ~6.50% p.a. |
| Interest Rate (Senior Citizens) | ~7.00% p.a. |
| Maturity Amount (General) | ~₹2,11,014 |
| Maturity Amount (Senior Citizens) | ~₹2,11,863 |
| Interest Earned (General) | ~₹11,014 |
| Interest Earned (Senior Citizens) | ~₹11,863 |
Note: Calculations are approximate and based on simple interest. Actual rates may vary based on current bank policies.
Key Features and Benefits
The Canara Bank 310-day FD scheme comes with several attractive features that enhance its appeal. The scheme allows partial withdrawals in multiples of INR 1,000, providing flexibility during emergencies.
This fixed deposit scheme also provides auto-renewal options, ensuring continuous earning potential without manual intervention. This feature is particularly useful for investors who prefer hands-off investment management.
Depositors can avail loan against their deposit amount, typically up to 90% of the FD value. This feature provides liquidity without breaking the deposit and losing interest benefits.
The nomination facility is available, ensuring smooth transfer of funds to nominees in case of unforeseen circumstances, adding an extra layer of financial security.
Eligibility and Documentation
The scheme is open to all Indian residents, including individuals, joint account holders, and corporate entities. A joint account can be opened for up to 4 persons, making it suitable for family investments.
Required documents include identity proof (Aadhaar Card, PAN Card), address proof, and photographs. Existing Canara Bank customers can open the FD through internet banking or mobile app with minimal documentation.
For senior citizens above 60 years, age proof is mandatory to avail the additional 0.50% interest benefit. The bank may require income proof for large deposits as per regulatory requirements.
The minimum investment amount is typically ₹1,000, while there’s no maximum limit, making the scheme accessible to investors across different income categories.
Taxation and TDS Implications
Interest earned on fixed deposits is taxable as per individual income tax slabs. For deposits earning interest above ₹40,000 per financial year, TDS at 10% is deducted automatically.
Senior citizens enjoy TDS exemption up to ₹50,000 interest income per year. Investors can submit Form 15G/15H to avoid TDS if their total income is below taxable limits.
The interest is taxable in the year it’s credited or received, whichever is earlier. For the 310-day scheme, proper tax planning can help optimize post-tax returns.
Investors should consider their overall tax liability while planning FD investments and may want to distribute investments across financial years for better tax efficiency.
How to Invest
Opening a Canara Bank FD is straightforward and can be done through multiple channels. Visit any Canara Bank branch with required documents and initial deposit amount for instant processing.
Online investment is available through Canara Bank’s internet banking platform and mobile app, providing 24/7 convenience. The process typically takes 5-10 minutes with instant confirmation.
Existing customers can also invest through phone banking by calling the customer care number and following the guided process. This option is particularly useful for senior citizens.
For large investments, consider consulting with the bank’s relationship manager who can provide personalized advice and help with documentation formalities.
Comparison with Other Investment Options
When compared to savings accounts offering 3-4% returns, the 310-day FD provides significantly higher returns with similar safety. Against equity mutual funds, it offers guaranteed returns without market risk.
Compared to other banks’ FD schemes, Canara Bank’s rates are competitive, and the 310-day tenure offers flexibility not available in traditional 1-year or 2-year deposits.
For risk-averse investors, this scheme outperforms government savings schemes like NSC or postal deposits in terms of liquidity and competitive returns.
The scheme particularly appeals to investors seeking better returns than liquid funds while maintaining capital preservation and predictable income.
Final Verdict
Canara Bank’s 310-day FD scheme offers an exceptional opportunity for investors seeking the ideal combination of security and attractive returns. With competitive interest rates and flexible features, it’s suitable for various investor categories.
The guaranteed returns, government backing, and additional benefits make it an excellent choice for conservative investors. The 310-day tenure provides optimal balance between returns and liquidity needs.
For a ₹2,00,000 investment, the scheme offers steady growth with complete principal safety, making it ideal for emergency funds, short-term goals, or conservative portfolio allocation.
Quick FAQs
Q:- What is the minimum amount required to open this FD?
A = The minimum investment amount is typically ₹1,000, making it accessible to all types of investors.
Q:- Can I break the FD before maturity?
A = Yes, premature withdrawal is allowed with penalty charges as per bank’s terms, though interest rates may be reduced.
Q:- Are the returns guaranteed?
A = Yes, the returns are completely guaranteed and backed by Canara Bank’s financial strength and government support.
