Canara Bank 444 Days FD Interest Rate for FY 2026-27: Check Returns, Senior Citizen Rate and Tax Rules

Canara Bank's 444-day fixed deposit is one of its special-tenure FD options for investors looking for a fixed return for a little more than one year. As per Canara Bank's latest official rate card effective 17 March 2026, the 444-day FD offers 6.50% per annum for the general public and 7.00% per annum for senior citizens, subject to the applicable deposit conditions. But the interest rate is only one part of the calculation.

Before investing, you should also understand the maturity amount, senior citizen benefit, TDS rules, income-tax treatment and whether the 444-day FD is actually better than other Canara Bank FD tenures.

Canara Bank 444 Days FD Interest Rate 2026-27

The latest Canara Bank rate card for domestic deposits below ₹3 crore lists the following rates for the special 444-day tenure:

The above rates are based on Canara Bank's rate card effective 17 March 2026. The bank specifies that the 444-day and 555-day special rates are applicable only to a single deposit of ₹5 lakh and above .

Quick Takeaway

If you are considering a Canara Bank FD for around one year, the 444-day FD offers a higher rate than the standard 1-year-plus-tenure rate under the current rate card.

For comparison, Canara Bank currently lists 6.25% p.a. for the general public and 6.75% p.a. for senior citizens for the 1-year-to-1-year-3-month category, while the 444-day special FD offers 6.50% and 7.00%, respectively.

How Much Will ₹1 Lakh Earn in Canara Bank 444 Days FD?

At an interest rate of 6.50% p.a., ₹1 lakh invested for 444 days can earn interest of roughly ₹7,900, depending on the interest payout method and compounding applicable to the FD.

For a senior citizen earning 7.00% p.a., the interest would be roughly ₹8,500 for the same principal and tenure.The exact maturity amount shown by Canara Bank can differ because cumulative FDs involve periodic compounding rather than simply multiplying the principal by the annual interest rate.

Example: ₹5 Lakh investment

Suppose you invest ₹5 lakh in the 444-day FD. At 6.50% p.a., the simple annual-interest equivalent would be:

• ₹5,00,000 × 6.50% = ₹32,500 per year

Since the FD runs for 444 days rather than exactly one year, the actual cumulative maturity value will depend on the bank's applicable compounding methodology.

For this reason, investors should use the actual maturity amount displayed by Canara Bank when booking the FD , rather than relying only on a simple-interest calculation.

Canara Bank 444 Days FD for Senior Citizens

Senior citizens get an additional interest benefit under Canara Bank's applicable domestic FD rates.

For the 444-day FD, the current rate card shows:

• General Public: 6.50% p.a.
• Senior Citizens: 7.00% p.a.

That means a senior citizen gets an additional 0.50 percentage point over the general-public rate for this tenure.

This higher rate can become significant when the deposit amount is large.

For example, on a ₹10 lakh deposit, even a 0.50 percentage-point difference can make a noticeable difference to the interest earned over the investment period.

Is Canara Bank 444 Days FD Tax-Free?

No. The interest earned on a normal Canara Bank fixed deposit is generally taxable as income from other sources .

• The fact that the money is invested in an FD does not automatically make the interest tax-free.
• Your final tax liability depends on your total taxable income, applicable tax regime and other eligible deductions.

Therefore, an investor should not look only at the FD interest rate. The post-tax return is what ultimately matters.

Canara Bank FD TDS Rules for FY 2026-27

One of the most important questions for FD investors is whether the bank will deduct TDS.

The TDS threshold for interest under Section 194A was increased from 1 April 2025.

For interest paid by banks, cooperative banks and post offices, the threshold is:

These thresholds were increased through the Finance Act, 2025 and apply from 1 April 2025.

Important Point

The threshold relates to the interest amount, not the principal invested.

For example, if your Canara Bank FD generates ₹60,000 of interest during the financial year, the TDS rules need to be considered even though the FD principal may be much higher.Also remember that the threshold is considered based on the applicable rules and the relevant payer/bank relationship.

What Is the TDS Rate on FD Interest?

Where TDS is applicable, the bank generally deducts tax at the prescribed rate.

However, TDS is not the same as your final income-tax liability . This is a common mistake made by FD investors.

Suppose the bank deducts ₹6,000 as TDS. That does not necessarily mean your final tax on the FD interest is ₹6,000.

The TDS amount is generally available as tax credit and can be adjusted against your final tax liability while filing your income-tax return.

If your actual tax liability is lower than the TDS deducted, you may become eligible for a refund, subject to your overall tax computation.

Can Senior Citizens Claim 80TTB on Canara Bank FD Interest?

Yes, eligible resident senior citizens can claim a deduction under Section 80TTB for interest earned from deposits with banks, post offices and cooperative banks, subject to the conditions of the provision.

For AY 2026-27, the Income Tax Department states that the maximum deduction available under Section 80TTB is ₹50,000 . Interest from both savings deposits and fixed deposits can qualify.

Example

Suppose a senior citizen earns:

• Canara Bank FD interest: ₹45,000
• Other eligible deposit interest: ₹20,000
• Total eligible deposit interest = ₹65,000

The maximum deduction under Section 80TTB is ₹50,000, subject to the applicable conditions.

Therefore, ₹50,000 may be claimed as a deduction rather than the entire ₹65,000.

Important: New Tax Regime

Taxpayers should also check whether the deduction is available under the tax regime they choose. Many Chapter VI-A deductions are restricted under the new tax regime.

Therefore, don't assume that every FD-related deduction will automatically reduce your taxable income.

Is FD Interest Taxable Under the New Tax Regime?

Yes, FD interest does not become tax-free simply because you choose the new tax regime.

The interest is generally included in your taxable income and taxed according to the applicable provisions.

For FY 2026-27, taxpayers should calculate their total income after considering salary, business/professional income, capital gains, interest income and other applicable sources.

The Income Tax Department's AY 2026-27 guidance lists interest income among the income sources that may be reported in the return.

Can You Avoid TDS on Canara Bank FD?

If you are eligible and your estimated total tax liability is nil, you may be able to submit the applicable declaration to the bank, subject to the conditions of the Income-tax Act and the relevant form.

For example, eligible individuals and senior citizens may use Form 121. However, these forms should not be submitted merely to avoid TDS. You should first determine whether you actually satisfy the conditions for submitting the declaration.

TDS Avoidance and Tax Avoidance are not the Same Thing.

Even when no TDS is deducted, the FD interest may still be taxable and may have to be reported in your income-tax return.

Canara Bank 444 Days FD vs 555 Days FD

This is where investors should think carefully. Canara Bank's current rate card also provides a special 555-day FD, with the general-public rate at 6.60% p.a. and the senior-citizen rate at 7.10% p.a. under the same rate card.

So the comparison looks like this:

Which is Better?

There is no universal answer.

• Choose the 444-day FD if you want your money locked in for a shorter period.
• The 555-day FD may suit you if you are comfortable keeping the money invested for longer and want the slightly higher rate.Your decision should also consider liquidity, premature withdrawal rules, future interest-rate expectations and your tax bracket.

Is Canara Bank 444 Days FD Better Than a 1-Year FD?

The answer depends on your investment objective.

The current Canara Bank rate card shows:

• 1 year to 1 year 3 months: 6.25% for general customers
• 444 days: 6.50% for general customers
• 555 days: 6.60% for general customers

For senior citizens, the corresponding rates are:

• 1 year to 1 year 3 months: 6.75%
• 444 days: 7.00%
• 555 days: 7.10%

So, based purely on the current interest rate, the 444-day FD is more attractive than the standard 1-year-to-1-year-3-month category.

But don't choose an FD based on rate alone.

What Happens If You Break the 444 Days FD Early?

• Before investing, check Canara Bank's applicable premature withdrawal terms.
• A fixed deposit provides a predetermined rate for a specified period, but withdrawing it before maturity can affect the interest payable.
• The bank may calculate interest based on the applicable rate for the actual period the deposit remained with the bank and may also apply the applicable premature-withdrawal conditions.
• Therefore, don't invest your emergency fund in a long-tenure FD simply because the interest rate looks attractive.
• Keep adequate liquidity outside the FD.

Who Should Consider Canara Bank 444 Days FD?

The 444-day FD may be suitable for:

• Investors looking for predictable returns
• Conservative investors who prefer bank deposits
• People who don't need the invested money for around 15 months
• Senior citizens seeking the additional interest benefit
• Investors looking for a special FD tenure rather than a conventional 1-year FD

It may not be suitable if you need the money at short notice.

Canara Bank 444 Days FD: Pros and Cons

Advantages

• Special interest rate: The 444-day tenure offers a special rate above the standard rate applicable to many nearby tenures.
• Additional senior citizen benefit: Senior citizens currently receive an additional 0.50 percentage point for this FD.
• Predictable returns:  Unlike market-linked investments, the FD provides a predetermined rate for the agreed tenure, subject to the bank's terms.
• Simple investment:  FDs are easy to understand and can be useful for investors who prioritise capital preservation and predictable interest income.

Disadvantages

• Interest is taxable:  Normal FD interest is not automatically tax-free.
• TDS can apply:  If the interest crosses the applicable threshold, the bank may deduct TDS.
• Money is locked for the tenure:  Premature withdrawal can affect your return.
• Inflation risk:  The nominal interest rate may look attractive, but inflation reduces the real purchasing power of your maturity amount.

Canara Bank 444 Days FD: Tax Calculation Example

Let's understand the concept with a simple example.

Suppose an investor earns ₹80,000 FD interest during the financial year.

The interest is generally added to taxable income.

If the taxpayer falls into a 20% effective marginal tax rate , the tax attributable to this additional income could be around ₹16,000 before considering applicable cess, deductions, rebates and the taxpayer's complete income profile.

This illustrates why comparing FD rates alone can be misleading.

Remember:

Pre-tax return ≠ post-tax return

An FD offering a higher interest rate does not necessarily produce the highest amount in your hands after tax.

Final Verdict: Should You Invest in Canara Bank 444 Days FD?

The Canara Bank 444 Days FD is worth considering if you want a fixed-income investment for roughly 15 months and don't need immediate access to the money.

At the current rate card, the FD offers 6.50% p.a. to general customers and 7.00% p.a. to senior citizens.

However, don't stop at the advertised interest rate.

Before opening the FD, compare:

Interest rate + tenure + maturity amount + tax + TDS + liquidity + premature withdrawal conditions.

For senior citizens, the additional interest and Section 80TTB benefit can make the overall tax calculation particularly important.

In short: a higher FD rate does not always mean a higher post-tax return.

Disclaimer: FD rates, terms and tax rules can change. The rates mentioned above are based on the Canara Bank rate card available at the time of writing. Investors should verify the applicable rate and terms with Canara Bank before booking the deposit. This article is for educational purposes and is not personalised financial advice.

Frequently Asked Questions

1. What is the Canara Bank 444-day FD interest rate in 2026?

As per Canara Bank's rate card effective 17 March 2026, the 444-day FD rate is 6.50% p.a. for the general public and 7.00% p.a. for senior citizens, subject to the applicable conditions.

2. What is the minimum amount for the 444-day special FD?

Canara Bank states that the special 444-day rate is applicable only for a single deposit of ₹5 lakh and above.

3. Is Canara Bank FD interest taxable?

Yes. Interest earned from a normal FD is generally taxable as income and must be considered while calculating your total taxable income.

4. What is the TDS limit on bank FD interest in FY 2026-27?

For bank interest, the threshold is ₹50,000 for non-senior citizens and ₹1 lakh for senior citizens, based on the changes effective from 1 April 2025.

5. Can senior citizens claim 80TTB on FD interest?

Eligible resident senior citizens can claim up to ₹50,000 under Section 80TTB, subject to the applicable conditions.