Canara Bank Offers 7.5% Interest on Fixed Deposits Under Special Deposit Scheme
MAS Team | 08 October 2022
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Bengaluru headquartered Canara Bank has introduced a special fixed deposit scheme that provides 7.50% interest rate. The scheme called ‘Canara Special Deposit Scheme’ has a tenure for 666 days. The bank under the scheme is offering a 7% interest rate for general customers, whereas senior citizens will get 7.5% interest on this fixed deposit plan. This scheme is for the amount under Rs2 crore.
The public sector bank (PSB) has raised its interest rates for all tenors and is currently providing an interest rate on deposits maturing in 7 days to 10 years that range from 3.25% to 7% for the general public and 3.25% to 7.50% for senior citizens.
The lender has increased its Repo Linked Lending Rate (RLLR) and Marginal Cost of Funds Based Lending Rate (MCLR) in line with the Reserve Bank of India (RBI)’s repo rate hike on 30th September. The revised rates will go into effect on 7 October 2022.
It is to be noted that the central bank has been increasing the repo rate since the month of May this year in a bid to control inflation. The repo rate has been raised by 140 basis points since May. The recent 50 bps rate hike is the fourth hike since May. The current repo rate is 5.9%.
Canara Bank has hiked rates by 15 bps from 6.90% to 7.05% for schemes in overnight to 1-month MCLR. For the three-month MCLR, the rate has been hiked by 15 bps from 7.25% to 7.40% and on a six-month MCLR, the rate has been hiked by 15 bps from 7.65% to 7.80%. On one year MCLR, the bank has hiked its rate by 1 bps from 7.75%% to 7.90%.
When banks link the interest rate on their loans to the repo rate, this is termed as the repo linked lending rate. It can be defined as: RLLR = RBI’s repo rate + margin/spread charged by the bank.
As RLLR is linked to an external benchmark, the loan interest rates also fluctuate. The margin depends on a number of variables, including the loan amount and loan-to-value ratio. Canara Bank increased its RLLR by 50 bps, from 8.30% to 8.80%.
New FD rates
The Canara Bank has raised its interest rates for all tenors and is currently providing an interest rate on deposits maturing in 7 days to 10 years that range from 3.25% to 7.00% for the general public and 3.25% to 7.50% for senior citizens.
The bank has raised its interest rate on fixed deposits maturing in 7 days to 45 days by 35 basis points (bps), from 2.90% to 3.25%. For 46 days to 90 days, the rates have gone up from 4% to 4.25%.
For schemes between 91 days and 179 days, depositors can get interest at the rate of 4.50% from 4.05%. For term deposits maturing in 180 days to 269 days, depositors will now earn interest at a rate of 5.90% instead of 4.65%.
On deposits of 270 days to less than a year, the public sector bank has increased its interest rate from 4.65% to 6.00%. The bank increased its interest rate from 5.50% to 6.50% on fixed deposits maturing in 1 year to 2 years, and from 5.55% to 6.50% for schemes running for 1 year or more but less than 2 years.
The interest rate on fixed deposits maturing in 666 days has climbed to 7% from 6%, while the interest rate on term deposits maturing in 2 years or more but less than 3 years has increased from 5.60% to 6.50%.
The bank has hiked its interest rate on fixed deposits maturing in 3 years and above to less than 5 years from 5.75% to 6.50%. On term deposits maturing in 5 years and above to 10 Years, it is offering a rate of 7.00% instead of 5.75%.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Pankaj Raheja at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.
