Canara Bank 191-Day FD Scheme – The High-Interest Short-Term Deposit Most Account Holders Don’t Know About

Are you confused about where to invest your extra savings for just a few months? If you want to grow your money safely without locking it for years or taking unnecessary risks, the Canara Bank 191-Day Fixed Deposit (FD) Scheme 2025 is a perfect option for you.

This FD comes with a duration that is slightly above six months. It offers higher returns than a normal savings account while keeping your funds easily accessible. With inflation affecting household budgets this year, this FD is becoming a popular choice for people who want short-term growth without long-term risk.

Why Is the 191-Day FD Special?

Think of this FD as a short-term “pit stop” for your money. You don’t have to commit your funds for a year or more. Instead, you lock your savings for exactly 191 days.

It is ideal for people who have near-future financial goals such as:

• School fees
• Upcoming travel
• Emergency fund building
• Short-term budget planning

Short-Term Benefits

• No long waiting periods
• Lower opportunity cost
• Higher returns than a regular bank account

Canara Bank, with over 9,700+ branches, is one of India’s most trusted public-sector banks known for stability, transparency, and easy access.

Canara Bank 191-Day FD Interest Rates (As of October 2025)

The most attractive feature of this FD is its interest rate.

• General Customers: 6.5% per annum
• Senior Citizens: 7.0% per annum

The additional 0.5% interest rate for senior citizens is extremely beneficial, especially for those depending on fixed income. These rates were announced after Canara Bank revised its FD slabs at the end of September, in line with the RBI’s stable repo rate.

In short: The bank offers competitive returns without exposing your money to market risks.

How Is Your Interest Calculated?

If you’re confused about how banks calculate FD interest, here’s a simple explanation:

• Interest is calculated daily.
• It is compounded quarterly, meaning every three months your interest earns more interest.

Example:
If you deposit ₹2,00,000 at 6.5%, your maturity amount after 191 days will be roughly ₹2,06,500.

Payout Options

1. Cumulative Payout:
   Interest is paid only at maturity.
2. Non-Cumulative Payout:
   Monthly or quarterly interest payout (best for senior citizens).

TDS (Tax Deducted at Source) applies only if your annual FD interest crosses:

• ₹40,000 (for general customers)
• ₹50,000 (for senior citizens)

You can avoid TDS by submitting Form 15G / 15H, if eligible.

Who Should Consider This FD?

This FD is suitable for:

• Salaried employees who want to park bonuses or short-term savings
• People seeking a risk-free emergency fund
• Senior citizens who prefer predictable monthly income
• NRIs who want a tax-efficient, repatriable deposit (through NRE FD)

There is no maximum investment limit. You can deposit as little as ₹1,000 or a large amount—both options work.

Note: Premature withdrawal is allowed, but a 1% penalty applies. So plan your finances wisely.

Key Benefits of Canara Bank’s 191-Day FD

Here’s why savers prefer this FD in 2025:

• Loan facility up to 90% of the FD amount
• Complete safety due to DICGC insurance up to ₹5 lakh
• Easy online renewal
• Nomination facility
• Stable returns even during market volatility

With stock markets being unpredictable this year, this short-term FD offers peace of mind without sacrificing returns.

Eligibility & Investment Process

The process is simple and quick.

Who Can Apply?

• Any Indian resident aged 18 or above
• Senior citizens
• NRIs (via NRE/NRO accounts)

Deposit Rules

• Minimum deposit: ₹1,000
• No upper limit

How to Invest?

• Net banking
• Mobile banking
• Nearest Canara Bank branch

If you already have an account, KYC verification takes only a few minutes. You also receive SMS alerts for deposit and maturity updates.

Application Link

Frequently Asked Questions (FAQ)

1. Is the 191-Day FD better than a 1-Year FD?

If you need short-term liquidity, yes.
The 191-day FD offers stability and good returns without a long lock-in period.
However, for long-term goals, 1-year or longer FDs may offer slightly higher interest rates.

2. Can I break the FD before 191 days?

Yes, you can.
But a 1% penalty is charged on the earned interest.
Choose this FD only if you’re sure you won’t need the money urgently.

3. What documents are required?

If you are already a Canara Bank customer:

• Aadhaar
• PAN

For new customers:

• Aadhaar
• PAN
• Address proof
• Passport-size photo

In Conclusion

If your goal is safe, stable growth with short-term commitment, the Canara Bank 191-Day FD Scheme 2025 is one of the smartest investment options available this year. It deserves serious consideration as part of your financial plan.