Canara Bank, India’s third-largest public sector bank, has introduced a special fixed deposit scheme for both general public and senior citizens.

The scheme, effective from 23 June, is applicable to deposits below Rs 2 crore and is valid till 30 September 2022. The tenure of the scheme is 333 days and the interest rate offered is 5.10%. For senior citizens, the interest rate offered is 5.60%.

The bank now offers an interest rate between 2.90% to 5.75% for regular citizens.

For deposits with a tenor of 180 days or more, the bank offers an additional interest rate of 0.50% for senior citizens.

For the Canara Tax Saver Deposit programme, the bank is offering 5.75% annual interest for general public. The maximum deposit that can be made is Rs 1.50 lakh.

Domestic/NRO term deposits of less than Rs 2 crore would be subject to a penalty of 1.00% for premature closure, part withdrawal, or premature extension.

According to the website, “For premature closure/part withdrawal/premature extension of Domestic/NRO term deposits, the bank imposes a penalty of 1.00%. Such prematurely closed/part withdrawn/prematurely extended deposits will earn interest at 1% below the rate as applicable for the relevant amount slab as ruling on the date of deposit and as applicable for the period run or 1% below the rate at which the deposit has been accepted, whichever is lower.”

On term deposits that are prematurely closed or extended before the end of the seventh day, no interest will be paid.

Earlier, Bank of India introduced a special term deposit scheme, with a tenure of 444 days, offering interest rate of 5.50% for general public and 6% for senior citizens.