Canara Bank hikes interest rates on FDs with tenures of 2 to 10 years

Canara Bank has announced that it has hiked interest rates on retail term deposits with tenures of 2 years to 10 years. The revised interest rates are effective from November 27, 2020. (The revised interest rates will be applicable for deposits of less than Rs 2 crore.)

According to a press release issued by the bank, after the rate hike, fixed deposits with tenure of 2 years but less than 3 years will fetch 5.40% for the general public and 5.90% for senior citizens -- annualised yield will be 5.51% for the general public and 6.03% for the senior citizens. For fixed deposits with tenure of 3 years or more but up to 10 years, the interest rate offered to general public has been revised to 5.50% and 6% for senior citizens.

Revised interest rate on fixed deposits from Nov 27,2020

Tenure	Interest rate for public	Interest rate for senior citizens
2 years to <3 years	5.40%	5.90%
3 years to 10 years	5.50%	6.00%

Source: Press release of Canara Bank

As per the press release, with this rate hike, "This makes Canara Bank offering the highest interest rate in this bracket among all the other PSU."

Canara Bank's announcement comes just a day before the Reserve Bank of India's bi-monthly monetary policy announcement. The apex bank kept the key rates unchanged.