Kolkata: All banks, irrespective of whether they are in the public or private sector, have started trimming interest rates on fixed deposits (FD) following two successive Repo Rate cuts by the Reserve Bank of India. One of the prominent public sector banks. Canara Bank, has also trimmed interest rates on fixed deposits of difference tenures. Fixed deposits are one of the most important investment instruments by Indians even in this age of high returns from equities and equity-linked products such as mutual funds.

Following the RBI act, the big guns of the Indian banking industry such as State Bank of India (SBI), HDFC Bank, ICICI Bank have all trimmed their FD interest rates. Canara Bank, another prominent PSU bank, has also joined them in the rate cutting exercise. Canara Bank had trimmed FD rates in the first half of April too. Needless to say, it will directly impact those who are dependent on interest income from FDs to defray their living expenses.

What are current FD interest rates?

Canara Bank divides the FDs into 11 sub categories according to their tenure. The rates given below are all callable deposits ie, which can be withdrawn prematurely. And these rates pertain to retail FDs — deposits which are less than Rs 3 crores. The new interest rates on FDs of different tenures of Canara Bank are:

7 Days to 45 Days: 4% (general customers), 4% (senior citizens)
46 Days to 90 Days: 5.25% (general customers), 5.25% (senior citizens)
91 Days to 179 Days: 5.50% (general customers), 5.50% (senior citizens)
180 Days to 269 Days: 6.15% (general customers), 6.65% (senior citizens)
270 Days to less than 1 Year: 6.25% (general customers), 6.75% (senior citizens)
1 Year Only: 6.85% (general customers), 7.35% (senior citizens)
444 Days: 7.00% (general customers), 7.50% (senior citizens)
Above 1 Year to less than 2 Years: 6.85% (general customers), 7.35% (senior citizens)
2 Years & above to less than 3 Years: 6.90% (general customers), 7.40% (senior citizens)
3 Years & above to less than 5 Years: 7.00% (general customers), 7.50% (senior citizens)
5 Years & above to 10 Years: 6.70% (general customers), 7.20% (senior citizens)