Canara Bank FD Scheme : Fixed Deposits (FDs) are one of the safest ways to save money. In this scheme by Canara Bank, you deposit a fixed amount for a certain time and earn interest on it. Many people prefer FDs because they are simple and low-risk. This article explains how you can invest ₹1 lakh and earn returns over time. The claim of earning ₹36,000 sounds attractive, but we’ll break it down clearly so you understand how it actually works.
Interest Rates Offered by the Bank
Canara Bank offers similar interest rates for different time periods in this scheme. The rate mentioned here is around 6.25% per year. This rate is not extremely high, but it is stable and secure. The longer you keep your money invested, the more interest you earn. That’s why a 5-year FD gives a much higher return compared to a 1-year FD.
Returns on ₹1 Lakh Investment
If you invest ₹1 lakh, your total return depends on how long you keep the money in the FD. For a short time, the profit is smaller, but it increases over time. After 1 year, you earn a few thousand rupees. After 3 years, the profit becomes much higher. After 5 years, the total interest becomes quite noticeable. This is because of compounding, where you earn interest on your interest too.
Can You Really Earn ₹36,000?
Yes, but only if you stay invested for 5 years. At a 6.25% interest rate, ₹1 lakh becomes about ₹1,36,354 after 5 years. This means your total profit is around ₹36,354. So, the claim is true, but it takes time. It’s not a quick return. You must wait patiently for the full benefit. This is important to understand before investing.
FD Scheme Details at a Glance
| Investment Amount | Duration | Interest Rate | Maturity Amount | Profit Earned |
|---|---|---|---|---|
| ₹1,00,000 | 1 Year | 6.25% | ₹1,06,398 | ₹6,398 |
| ₹1,00,000 | 2 Years | 6.25% | ₹1,13,205 | ₹13,205 |
| ₹1,00,000 | 3 Years | 6.25% | ₹1,20,448 | ₹20,448 |
| ₹1,00,000 | 5 Years | 6.25% | ₹1,36,354 | ₹36,354 |
Tips Before You Invest in FD
Before putting your money into an FD, keep these important points in mind:
- Always check the latest interest rates before investing
- Choose the duration based on your financial goals
- Avoid breaking the FD early, as it may reduce your returns
- Compare FD rates from different banks
- Consider tax on interest earned
- Use FD calculators to estimate your returns
Frequently Asked Questions (FAQs)
Q1. Is this FD scheme safe?
Yes, bank FDs are considered very safe, especially in government banks.
Q2. Can I withdraw money before maturity?
Yes, but you may have to pay a penalty and get lower interest.
Q3. Is the interest rate fixed?
Yes, once you book an FD, the interest rate stays fixed for that duration.
Q4. Do I have to pay tax on FD interest?
Yes, the interest earned is taxable as per your income slab.
Q5. Can I invest more than ₹1 lakh?
Yes, you can invest any amount depending on your financial plan.
Q6. Is ₹36,000 return guaranteed?
Yes, but only if you invest ₹1 lakh for 5 years at the given rate.
