Canara Bank has sharply cut the rates on deposits maturing in seven to 45 days
The bank has reduced the interest rate on deposits maturing in one year
NEW DELHI: State-owned Canara Bank has revised interest rates on deposits which are less than ₹2 crore with effect from 9 August. The bank has sharply cut the rates on deposits maturing in seven to 45 days. For term deposits with maturity period 7-45 days, Canara Bank has slashed the interest rate from 5.75% to 5%. For FDs with maturity period 46-269 days, the bank has kept the rate unchanged at 6%. Term deposits maturing in 270 days to less than 1 year will also fetch the same interest rate as earlier, i.e. 6.20%. The bank had earlier revised its interest rates on 4 July.
Canara Bank has reduced the interest rate on deposits maturing in one year. Earlier, it was offering an interest rate of 6.70% for these deposits. Now these deposits will fetch an interest rate of 6.50%. For deposits maturing in above 1 to less than 3 years, the bank has increased interest rate by 10 basis points, these FDs will now give you an interest rate of 6.50 %.
For deposits maturing in three to less than five years, the rate of interest is unchanged. These deposits will continue to give you 6.40% interest per annum.
Canara Bank has hiked the interest rate on tax-saving FDs maturing in five to ten years. For deposits maturing in 5 to less than 8 years and 8 year to above 10 years, the bank has increase the interest rate by 40 and 30 basis points, respectively.
FDs maturing in 5 to less than 8 years will offer an interest rate of 6.40%, whereas deposits with maturity period 8 years to above 10 years will give a return of 6.30%.
Canara Bank latest fixed deposit rates
Senior citizens will get 50 basis points more than the general customer across all tenures.
This comes just two days after the Reserve Bank of India (RBI) cut the benchmark repo rate by 35 basis points (bps) in the Monetary Policy Committee (MPC) review meet on 7 August. This is the fourth time in a row that the RBI has reduced the lending rate. In the earlier three policies, it has reduced the repo rate by 25 bps each. After RBI’s rate cut, many banks have been bringing down their deposit rates.