1. What is Canara Bank Fixed Deposit?

Canara Bank Fixed Deposit is a financial product where you deposit a lump sum amount for a fixed period at a predetermined interest rate with quarterly compounding. It offers secure returns and is a popular investment choice.

2. How Does the Calculator Work?

The calculator uses the Canara Bank FD formula:

Where:

• \( A \) — Maturity Amount (currency units)
• \( P \) — Principal Amount (currency units)
• \( R \) — Annual Interest Rate (%)
• \( T \) — Time Period (years)

Explanation: The formula calculates the maturity amount with quarterly compounding, where interest is calculated and added to the principal every three months.

3. Importance of FD Calculation

Details: Accurate FD calculation helps investors plan their finances, compare investment options, and understand the potential returns from their fixed deposit investments.

4. Using the Calculator

Tips: Enter principal amount in currency units, annual interest rate in percentage, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum deposit for Canara Bank FD?
A: The minimum deposit amount varies by branch and FD scheme, typically starting from ₹1,000 for regular fixed deposits.

Q2: Are Canara Bank FDs safe?
A: Yes, Canara Bank FDs are considered safe as they are offered by a public sector bank and deposits are insured up to ₹5 lakhs per depositor by DICGC.

Q3: What is the interest payment frequency?
A: Canara Bank offers various interest payout options including monthly, quarterly, half-yearly, yearly, or at maturity, with quarterly compounding being standard.

Q4: Are there tax benefits on Canara Bank FDs?
A: Regular FDs don't offer tax benefits, but Canara Bank offers Tax Saver FDs with a 5-year lock-in period that qualify for tax deduction under Section 80C.

Q5: Can I withdraw my FD prematurely?
A: Yes, premature withdrawal is allowed but may attract a penalty of 0.5-1% on the interest rate, depending on the terms and conditions.