Let’s be honest. When markets swing up and down, most of us don’t want excitement—we want peace of mind. That’s exactly why short-term fixed deposits are back in focus. And in 2025, one option is quietly getting a lot of attention: the Canara Bank 191-Day FD Scheme.
At first glance, it looks like a regular short-term FD. But spend a minute with the details, and you’ll see why salaried professionals, retirees, and cautious investors are giving it a serious look.
What Makes the 191-Day FD Different?
Here’s the thing. Most short-term FDs run for 180 days or six months. Canara Bank added just a few extra days—191, to be precise—and that small tweak allows the bank to offer a better return.
The tenure is fixed, so there’s no confusion. You know exactly when your money comes back. And because Canara Bank is a government-owned bank, the sense of safety feels stronger for conservative investors.
Under this scheme, regular depositors earn 6.85% interest, while senior citizens get 7.35%. For a short duration, those rates stand out in today’s environment.
Why So Many People Are Choosing This FD in 2025
The popularity of the Canara Bank 191-Day FD Scheme isn’t accidental. It fits neatly into real-life needs.
Imagine you have surplus cash that you may need in six to seven months—maybe for a family expense, a planned purchase, or just as a safety buffer. Keeping it in a savings account barely beats inflation. Locking it for years doesn’t feel right either.
This FD sits comfortably in the middle.
For example, a deposit of ₹2 lakh can earn around ₹6,500 in just 191 days. That’s noticeably higher than many standard six-month deposits, without stretching your lock-in period.
A Closer Look at the Key Details
| Feature | Details | Why It Helps |
|---|---|---|
| Tenure | 191 days | Short-term with better yield |
| Interest Rate | 6.85% (general), 7.35% (senior citizens) | Competitive returns |
| Minimum Deposit | ₹1,000 | Easy entry for small savers |
| Maximum Deposit | ₹2 crore | Suitable for large investments |
| Insurance Cover | ₹5 lakh (DICGC) | Capital safety |
| Premature Withdrawal | Allowed with penalty | Added flexibility |
Another comfort point is insurance. Deposits are covered up to ₹5 lakh under DICGC rules, which adds a safety net many investors care about.
Why Senior Citizens Find It Especially Useful
For retirees, steady income matters more than high-risk growth. This scheme offers an extra 0.50% interest for senior citizens, which can make a real difference over repeated deposits.
Interest is compounded quarterly, so earnings don’t just sit idle. For someone relying on fixed income, this predictable growth can help manage monthly expenses with less stress.
Is This FD Right for You?
If your priority is safety, clarity, and short-term returns, the Canara Bank 191-Day FD Scheme 2025 checks many boxes. It won’t make you rich overnight, but that’s not its job. Its job is to protect your money and give you a fair return—quietly and reliably.
Frequently Asked Questions
Can I withdraw money before 191 days?
Yes, premature withdrawal is allowed. However, the bank applies a penalty on interest, so it’s best to invest only if you’re reasonably sure you won’t need the funds urgently.
Is the 191-Day FD better than a savings account?
In most cases, yes. The interest rate is significantly higher than a savings account, making it a better option for idle funds you can spare for six to seven months.
Can senior citizens open this FD online?
Yes. Senior citizens can open the FD through Canara Bank’s online banking platform or by visiting a branch. The higher interest rate applies automatically.
