Canara Bank’s “Tax Saver” Fixed Deposit (FD) scheme at 2025 is the most intelligent approach to supplement your savings by building them and pruning your income exposure to tax. Indeed, it is capable of empowering you to get guaranteed returns and, even more excitingly, to extract tax benefits from the framework of Section 80C of the Income Tax Act. This FD is a desirable one for those who work with companies or fixed incomes once they retire or those who just want a secure means of investing for a considerable period.
What Is Canara Bank Tax Saver FD?
Tax Saver FD is FDs, the main feature of which is a five-year lock-in period. Its specific purpose is helping taxpayers save on taxes and earn good interest. One can also invest a maximum of ₹1.5 lakhs per fiscal year and avail of deductions under Section 80C. This can also be linked to Canara Bank’s Fixed Deposit and Kamadhenu Deposit (Re-investment Plan) scheme.
Latest Interest Rates – November 2025
Here are the prevailing Canara Bank Tax Saver FD interest rates:
| Category | Interest Rate (p.a.) |
|---|---|
| Regular Citizens | 6.50% |
| Senior Citizens | 7.00% |
Main Advantages of Canara Bank Tax Saving FD
- Tax Deduction – Upto ₹1.5 lakh under Section 80C
- Guaranteed Returns – Fixed interest for 5 years
- Safe Investment- backed by a leading public sector bank
- Senior Citizen Benefit-Extra 0.5% interest
- Flexible Options- Available in cumulative and non-cumulative formats
- DICGC Insurance: Deposits insured up to ₹5 lakhs
Best for individuals looking to reduce their tax burden while earning sound returns.
Important Condition
- Lock-in Period- 5 years (no premature withdrawal allowed)
- Minimum deposit- ₹100
- Maximum deposit- ₹1.5 lakh per financial year
- Nomination Facility- Available
Final Thoughts
Canara Bank’s Tax Saver FD in 2025 is a high value, and low-risk investment for long-term savings and tax planning. With up to 7% interest rates and tax benefits, it is a good choice for building wealth while ensuring financial planning. You should consider this FD if you are looking to save tax while you also have your consistent savings. Do this as early as possible, definitely within this fiscal year.
