Fixed Deposits (FDs) remain one of the most popular investment options for Indian savers who prefer safety and assured returns. Among the many schemes available, Canara Bank’s 310-day FD plan has drawn attention due to its attractive interest rates and short-to-medium tenure. By investing ₹2,00,000, depositors can earn a guaranteed return without worrying about market volatility.
Why Choose the 310-Day FD Scheme?
The 310-day scheme is designed for those who want returns higher than a savings account but don’t want to lock in funds for too long. Unlike long-term FDs that tie up your money for 5–10 years, this scheme provides flexibility, liquidity, and decent earnings in less than a year.
Interest Rates Offered
The bank offers competitive rates, with an additional 0.50% interest for senior citizens.
Canara Bank FD Interest Rates (310 Days – Approximate)
| Category | Interest Rate (p.a.) |
|---|---|
| General Public | 6.85% – 7.00% |
| Senior Citizens | 7.35% – 7.50% |
(Rates are indicative and may vary depending on RBI policy changes and Canara Bank revisions.)
Returns on ₹2,00,000 Investment
Here’s how much you can expect to earn from this FD scheme:
| Investment Amount | Tenure | Interest Rate | Maturity Amount | Total Interest Earned |
|---|---|---|---|---|
| ₹2,00,000 | 310 days | 7.00% (public) | ~₹2,11,870 | ~₹11,870 |
| ₹2,00,000 | 310 days | 7.50% (senior) | ~₹2,12,750 | ~₹12,750 |
This means that in just over 10 months, investors can earn nearly ₹12,000 in safe, guaranteed returns.
Benefits of the Scheme
- Assured Returns: Unlike equities or mutual funds, FD returns are fixed.
- Flexibility: Maturity period of just 310 days makes it easy for short-term planning.
- Senior Citizen Advantage: Higher interest ensures better income for retirees.
- Liquidity: Premature withdrawal is allowed (with nominal penalty).
Tax Implications
The interest earned from this FD is taxable under the Income Tax Act, 1961. If total annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens), TDS (Tax Deducted at Source) will be applicable. Investors can also submit Form 15G/15H (if eligible) to avoid TDS deduction.
Conclusion
The Canara Bank 310-Day FD scheme is a strong choice for those looking for secure, short-term returns. With ₹2,00,000 turning into over ₹2.11–2.12 lakh in just 10 months, this FD provides a safe and effective way to grow savings without market risk. For both regular customers and senior citizens, it strikes the right balance between growth and security.