Here’s something many savers don’t realize. You don’t always need to lock your money away for a year or more to earn a decent fixed deposit return. In 2025, Canara Bank’s 191-day FD quietly fills that gap for people who want safety, flexibility, and better interest in under seven months.
If you’ve ever hesitated between keeping money idle in savings or committing to a long FD, this scheme deserves a closer look.
What Makes the Canara Bank 191-Day FD Different?
Think about it this way. Most short-term FDs run for 90, 180, or 200 days, and the rates are usually nothing to write home about. The Canara Bank 191-day FD is structured to sit right in the middle. Just long enough to earn a higher rate, but short enough to keep your money accessible.
It’s a limited-tenure offer, which means the bank uses it to attract short-term funds. For depositors, that translates into better yields without taking extra risk.
Interest Rates You Actually Notice
In 2025, Canara Bank is offering up to 7.00 percent per annum on the 191-day FD for regular customers. Senior citizens get an extra 0.50 percent, pushing their returns up to 7.50 percent per annum.
Now, why does this matter? Because many standard short-term deposits still hover closer to savings account levels. Over six months, that difference adds up, especially if you’re parking a lump sum temporarily.
Who Can Invest and How Much?
The entry barrier is refreshingly low. You can start with as little as Rs 1,000, and there’s no upper limit on the deposit amount. This makes the scheme suitable whether you’re investing spare cash or managing larger short-term funds.
Eligibility includes:
- Resident individuals
- Senior citizens
- Hindu Undivided Families (HUFs)
Interest can be paid either quarterly or at maturity, depending on what suits your cash flow needs.
Safety, Liquidity, and Flexibility
Safety is often the first question people ask. Since this is a Canara Bank FD, deposits are covered under DICGC insurance up to Rs 5 lakh per depositor, which adds a strong layer of protection.
Need the money earlier than planned? Premature withdrawal is allowed, though a small penalty may apply. It’s not tax-saving under Section 80C, but that’s expected for short-term FDs.
Is the 191-Day FD Right for You?
This FD works best if you:
- Have surplus funds for 6 to 7 months
- Want better returns than a savings account
- Prefer zero market risk
- Are a senior citizen looking for stable short-term income
I’ve seen many people use this kind of FD while waiting to reinvest, buy property, or simply decide their next financial move. It keeps money productive instead of idle.
How to Open a Canara Bank 191-Day FD in 2025
Opening the FD is straightforward. Existing customers can book it through net banking or the Canara Bank mobile app in minutes. You can also walk into any branch with basic KYC documents.
One small but important tip. Interest rates can change, so always confirm the latest rate on Canara Bank’s official website before investing.
Frequently Asked Questions
Is the Canara Bank 191-day FD available for online booking?
Yes. Existing Canara Bank customers can open the 191-day FD through net banking or the mobile app. New customers may need to visit a branch first to complete KYC, after which online booking becomes available.
Can senior citizens withdraw interest monthly from this FD?
The 191-day FD typically offers interest payout at maturity or on a quarterly basis. Monthly interest options are generally not available for this short tenure, but seniors still benefit from the higher interest rate.
Is TDS applicable on interest earned from the 191-day FD?
Yes. If the total interest earned in a financial year exceeds the prescribed limit, TDS will apply as per income tax rules. Eligible investors can submit Form 15G or 15H to avoid TDS if applicable.
Also read: HDFC Bank Minimum Balance Rules 2025: Complete Guide for Account Holders