The State-Owned Canara Bank has given us a great option for short-term fixed deposits (FDs) in 2025, tailored to meet the requirements of investors who want safety, liquidity, and a guaranteed return.
The 191 Days Canara Bank Short-Term FD 2025 provides lucrative interest rates and ample flexibility for anyone willing to invest ₹2,00,000 for a short period of time into a steady income. This plan is for those who want to earn more from idle funds, without surrendering them to a long-term lock-in.
Overview of Canara Bank Short-Term FD 2025
The Canara Bank 191 Days FD scheme is a short-duration deposit plan that pays out steady income over approximately six months. Unlike market-linked investments, this FD guarantees an interest payout, so your returns remain unaffected by market volatility.
According to the latest Canara Bank FD rates 2025, the interest for the 191-day term ranged from 6.35 % to 6.85 % per annum for regular customers and could go up to 7.35 % per annum for senior citizens. This ranks it amongst the most rewarding short-term FDs of the major public sector banks in India.
How Much Are You Going to Earn on ₹2,00,000 in 191 Days?
Return on investments of ₹2,00,000 in the Canara Bank 191 Days Short-Term FD is quite impressive over such a short duration of time. Interest accrued will be approximately ₹7,150 on the maturity value of ₹2,07,150, considering the average rate of 6.85% per annum.
For senior citizens, at an interest rate of 7.35%, the maturity value can go up to about ₹2,07,400. This solid short-term investment offers consistent interest payments, instilling confidence in a risk-averse investor.
Why the 191 Days FD Plan Is Attracting Investors
The 191 Days Canara Bank FD is a huge hit among short-term investors as it balances liquidity and profit perfectly. It is meant for individuals who want the guaranteed safety of money for less than a year along with a higher rate of interest compared to savings accounts.
Furthermore, investors get to select from the interest payout options depending on their requirements. Whether it is a monthly, quarterly, or cumulative payout, Canara Bank remains flexible enough for investors to link the FDs with short-term savings or emergency funds.
Features and Benefits of Canara Bank 191 Days FD
The Canara Bank Short-Term FD 2025 has many advantages to its credit. Being a risk-free investment by way of a government-owned bank, it becomes one of the safest choices for the cautious. The plan allows a premature withdrawal wherein some interest penalty is levied on the investor, thus providing adequate liquidity in case of urgent financial requirements.
Loan against FD facility is one of the other major advantages: the depositor, in fact, has the right to borrow up to 90 percent of the deposit amount without breaking the FD. The auto-renewal option also allows investors to continue earning interest even after maturity unless they choose to withdraw their funds.
How to Open a Canara Bank 191 Days FD
Opening a Canara Bank 191 Days Fixed Deposit is an easy and convenient task. Presently, an existing customer can open FDs through either Canara Bank NetBanking or via the mobile banking app or by going to the nearest branch. The investor has to specify the deposit amount (₹2,00,000 or more) and select the 191-day tenure as the interest payout type and confirm it with the bank.
New investors can open an account by submitting KYC documents such as PAN, Aadhaar, and address proof. Once opened, Canara Bank issues a Fixed Deposit Receipt (FDR), which contains details of the deposit amount, tenure, and interest rate.
Tax Rules on Canara Bank FD Interest
Canara Bank FDs accrue interest, and under the provisions of the Income Tax Act, 1961, that accrued interest is taxable. As a matter of procedure, the banks deduct TDS if the accrued interest exceeds ₹40,000 (₹50,000 in the case of senior citizens). However, a person having income below this limit can file Form 15G or Form 15H to avoid the deduction of TDS.
Investors may also explore tax-saving FDs with a five-year lock-in period under Section 80C albeit unlike their 191-day short-term plans.
Why Go in for Canara Bank FD 2025
Canara Bank FD 2025 is among the best returns offered by public sector banks and also enjoys good service standards. 191 Days FD has much more appeal to an investor as a short-term, safe investment.
Unlike mutual funds or stocks, these FDs provide a fixed rate of return, meaning your principal and earnings are fully secured irrespective of the fluctuation in markets. The facility to either pre-close the investment or renew it automatically gives the investor complete flexibility to manage their funds.
Maturity Value Comparison
Potential value comparisons are presented here for the sake of various depositors:
| Investor Type | Deposit Amount | Tenure | Interest Rate (Approx.) | Maturity Value |
|---|---|---|---|---|
| Regular Investor | ₹2,00,000 | 191 Days | 6.85% p.a. | ₹2,07,150 |
| Senior Citizen | ₹2,00,000 | 191 Days | 7.35% p.a. | ₹2,07,400 |
The above tabular comparison shows that the 191-Day FD offers quick and safe returns and fits well with short-term financial objectives.
Conclusion
The ₹2,00,000 Canara Bank Short-Term FD 2025 – 191 Days Plan is for the person who wants guaranteed and steady growth in less than seven months. Earning a competitive rate of interest with full safety and premature withdrawal options, this FD makes sure your money stands to work efficiently without any risk.