Canara Bank has launched a special fixed deposit scheme for a tenure of 666 days, offering an interest rate of 7.5% for senior citizens and 7% for its other customers. This special term deposit scheme is for deposits of less than Rs 2 crore.

The state-owned bank hiked the interest rate on retail fixed deposits of less than Rs 2 crore for all tenors with effect from 7 October.

The bank increased its interest rate on fixed deposits maturing in 7 days to 45 days by 35 basis points (bps), from 2.90% to 3.25%, and on retail term deposits maturing in 46 days to 90 days by 25 bps, from 4% to 4.25%.

Fixed deposits maturing in 91 days to 179 days will fetch an interest of 4.50%, up from 4.05% previously. Term deposits maturing in 180 days to 269 days will earn interest at a rate of 5.90%, up from 4.65% previously.

On deposits maturing in 270 days to less than a year, Canara Bank increased its interest rate by 135 bps, from 4.65% to 6%.

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% on term deposits maturing in 1 year or more but less than 2 years.

The interest rate on fixed deposits maturing in 2 years or more but less than 3 years has climbed to 6.50% from 5.60%. 

Canara Bank upped its interest rate on fixed deposits maturing in 3 years and above to less than 5 years from 5.75% to 6.50%, and on term deposits maturing in 5 years and above to 10 years from 5.75% to 7%.