Archive · 12 Jan 2026
Canara Bank Revises FD Rates: 555-Day Deposit Offers Highest Interest
Canara Bank has changed its fixed deposit (FD) interest rates.
The highest interest rate is now for a 555-day deposit, offering 6.50% to the general public and 7.00% to senior citizens.
Other banks like Bank of Baroda and Bank of Maharashtra have also updated their FD rates.
The Reserve Bank of India (RBI) has been lowering its repo rate, which affects how much banks pay on deposits.
Shorter-term deposits are now offering better returns than longer-term ones.
Investors, especially senior citizens, might want to consider these shorter-term deposits for better interest.
Canara Bank revised FD rates effective January 5, 2026, with the highest rate of 7.00% for senior citizens on a 555-day deposit.
The RBI has cut the repo rate by 125 basis points, leading to a general decline in FD rates, especially for longer tenures.
Other PSU banks like Bank of Baroda and Bank of Maharashtra have also revised their FD rates, with the highest rates offered on special short- and mid-term deposits.
Bank of Baroda offers up to 7.05% to super senior citizens on a 444-day deposit, while Bank of Maharashtra offers up to 7.15% to senior citizens on a 400-day deposit.
Investors, particularly senior citizens, are advised to consider 400–555 day deposits for better returns as longer-term FD rates have flattened.
- Who
- Canara Bank, Bank of Baroda, Bank of Maharashtra
- What
- Revised fixed deposit (FD) interest rates
- When
- Effective from January 5, 2026
- Where
- India
- Why
- Due to sustained monetary easing by the Reserve Bank of India (RBI)
- Effective Date
- January 5, 2026
- Highest Callable Rate (General)
- 6.50% (555-day)
- Highest Callable Rate (Senior Citizens)
- 7.00% (555-day)
- RBI Repo Rate
- 5.25%
- RBI Rate Cuts (Cumulative)
- 125 basis points
- Other PSU Banks
- Bank of Baroda, Bank of Maharashtra
- Bank of Baroda Highest Rate
- 7.05% (Super Senior Citizens, 444-day)
- Bank of Maharashtra Highest Rate
- 7.15% (Senior Citizens, 400-day)