Investment News · 4 November 2026 · 3 min read
In short: Canara Bank and Punjab National Bank (PNB) have revised their fixed deposit (FD) rates this month. Canara now pays up to 6.75% (7.25% for senior citizens) on a 555-day FD from 2 November. PNB pays up to 6.60% (7.10% for seniors) on a 444-day FD from 1 November. The changes follow the RBI’s 25 basis point repo rate hike to 5.50% in October 2026.
A basis point is one-hundredth of a percentage point, so 25 basis points is 0.25%. When the RBI raises its repo rate, banks usually raise loan rates quickly, and deposit rates follow more slowly. We explained why in Will FD rates rise after the RBI hike?
The new FD rates
These rates are for domestic deposits below ₹3 crore, as reported.
| Bank and tenure | Regular | Senior citizens | From |
|---|---|---|---|
| Canara Bank, 555 days | 6.75% | 7.25% | 2 Nov 2026 |
| Canara Bank, 444 days | 6.65% | 7.15% | 2 Nov 2026 |
| Canara Bank, over 2 to 10 years | 6.25% | 6.75% | 2 Nov 2026 |
| PNB, 444 days | 6.60% | 7.10% | 1 Nov 2026 |
| PNB, 666 days | 6.50% | 7.00% | 1 Nov 2026 |
Reports say Canara raised rates by up to 0.15%. PNB’s full range is 3.00% to 6.60% for regular depositors and 3.50% to 7.10% for senior citizens.
What it means for you
- The best rates are on odd, special tenures like 444 or 555 days. Normal 2 to 10 year FDs still pay much less (6.25% at Canara).
- Rough example: ₹1,00,000 in Canara’s 555-day FD at 6.75% (quarterly compounding) earns about ₹10,700. A senior citizen at 7.25% earns about ₹11,500. Banks’ own calculators may differ slightly.
- If you expect rates to rise further, you can split money across a few FDs with different end dates instead of locking it all in at once.
- FD interest is taxed at your income tax slab rate. Banks deduct TDS once yearly interest crosses ₹50,000 (₹1,00,000 for senior citizens).
- Deposits are insured up to ₹5 lakh per depositor per bank by DICGC.
Compare options on our savings accounts page or plan a goal with the savings calculator.
What to watch next
- Other banks: reports say lenders are competing harder for deposits, with Axis Bank and others changing rates on large (₹3 crore plus) deposits.
- Loan rates are rising too. PNB, Bank of India and Indian Bank have raised their MCLR (a benchmark for many loans). See our PNB MCLR story.
- Always check the final rate on the bank’s website before you book.
Sources
- NewsBytes: PNB, Canara Bank revise FD rates (3 Nov 2026)
- Unique Samay: Canara Bank and PNB revise FD rates (3 Nov 2026)
- PSU Connect: RBI hikes repo rate by 25 bps to 5.50%
- PSU Connect: Bank of India hikes MCLR from 1 November 2026
- Whalesbook: Indian Bank revises MCLR effective 3 November
- Whalesbook: Indian banks raise FD rates as funding costs rise (4 Nov 2026)
This is a news summary for education, not investment advice. Figures are as reported on or before 4 November 2026; check official sources before making decisions.