Fixed Deposits continue to be one of the most popular choices for Indian investors who want safety, assured returns, and flexible tenures. In 2025, Canara Bank has come up with attractive short-term fixed deposit options, and among them, the 191-day FD is creating interest. Unlike standard periods such as six months, one year, or three years, this scheme is designed to offer slightly better returns in a short span of time. It strikes a good balance between liquidity and earnings, making it suitable for people who do not wish to commit their money for a long duration.
Interest Rates for 2025
Canara Bank has revised its deposit rates in 2025 to remain competitive and to attract more investors. For the 191-day FD, the bank is currently offering an interest rate of about 6.85 percent per annum for regular depositors and around 7.35 percent per annum for senior citizens. These rates are much higher than what regular savings accounts provide, which usually range between three to four percent.
Returns on an Investment of ₹2,00,000
If you plan to invest ₹2,00,000 in this short-term FD, here is how the numbers look over the 191-day period. For general citizens, the maturity amount will be approximately ₹2,06,982, giving net interest earnings of about ₹6,982. For senior citizens, the maturity amount works out to nearly ₹2,07,693, which means a return of around ₹7,693. The exact maturity value may differ slightly depending on compounding methods and any updates in bank policies, but these figures give a clear idea of the potential returns.
Taxation on FD Interest
While the returns from this FD are attractive, it is important to consider the tax aspect. Interest earned from fixed deposits is fully taxable under the Income Tax Act. If the total annual FD interest crosses ₹40,000 for regular investors or ₹50,000 for senior citizens, the bank deducts tax at source at a rate of 10 percent, provided the depositor has submitted a valid PAN. Those in higher income brackets should also account for additional tax liability on these earnings.
Who Should Consider This Option
The Canara Bank 191-day FD is best suited for individuals who have extra funds that they do not need immediately but still want to keep accessible within a short period. It is also an excellent choice for senior citizens, who can enjoy a higher rate of return without committing their money for too long. For anyone searching for a secure alternative to savings accounts or short recurring deposits, this FD plan offers both safety and decent growth.
Conclusion
In 2025, the Canara Bank 191-day fixed deposit is emerging as a reliable short-term investment option. With returns of nearly ₹7,000 for regular investors and close to ₹7,700 for senior citizens on an investment of ₹2,00,000, it provides a good mix of safety, liquidity, and profitability. For those planning their finances with a short horizon in mind, this FD could be a smart choice.
Disclaimer
The figures and rates mentioned above are based on the latest available data from Canara Bank in 2025. Interest rates and policies are subject to change at the bank’s discretion. Investors are advised to confirm the latest details with the bank before making any investment decision.