Short-term fixed deposits are back in demand in 2026 as investors look for stable returns without locking their money for years. One option drawing attention is the 310 Day Fixed Deposit scheme from Canara Bank, designed for those who want predictable income with limited risk exposure.
If you are considering parking funds for less than a year, here is a detailed breakdown of how the 310 Day FD works, expected returns, eligibility, and what to check before investing.
What Is the 310 Day FD Scheme
The 310 Day Fixed Deposit is a short-term deposit product offered by Canara Bank.
It allows investors to:
Deposit a lump sum amount
Lock funds for 310 days
Earn fixed interest at the declared rate
Receive maturity amount at the end of tenure
This tenure is suitable for investors who want better returns than savings accounts but do not want long lock-in periods.
Interest Rate and Return Structure
Interest rates on fixed deposits vary depending on market conditions and bank policy.
For the 310 Day FD in 2026, the rate may differ for:
General customers
Senior citizens
High-value deposits
Senior citizens typically receive slightly higher interest compared to regular customers.
Returns are calculated based on:
Principal amount
Applicable interest rate
Compounding frequency
At maturity, investors receive the principal plus accumulated interest.
Who Should Consider This FD
The 310 Day FD may suit:
Conservative investors seeking capital safety
Individuals with surplus funds for less than one year
Senior citizens preferring predictable returns
Investors planning short-term financial goals
It is particularly useful for those waiting to deploy funds in larger investments later.
Comparison with Savings Accounts
Savings accounts offer flexibility but lower interest rates.
Short-term fixed deposits like the 310 Day FD generally provide higher interest compared to standard savings accounts.
However, funds remain locked for the chosen tenure unless premature withdrawal is requested.
Premature Withdrawal Rules
Canara Bank typically allows premature withdrawal of FDs, but penalties may apply.
The interest paid in such cases may be lower than the contracted rate.
Investors should carefully review premature withdrawal terms before investing.
Tax Implications
Interest earned on fixed deposits is taxable as per income tax rules.
If interest exceeds specified thresholds, TDS may be deducted.
Senior citizens may benefit from higher exemption limits under applicable rules.
Investors should calculate post-tax returns to understand actual earnings.
Safety and Risk Profile
Fixed deposits in scheduled commercial banks are considered low-risk investments.
They offer guaranteed returns as per the interest rate locked at the time of deposit.
While returns are stable, they may not always beat inflation over long periods.
For short-term parking of funds, however, FDs remain a popular option.
How to Open a 310 Day FD
Investors can open the deposit through:
Online banking portal
Mobile banking app
Visiting a branch
Customer service support
KYC compliance and valid documentation are required.
Minimum deposit amounts may vary depending on bank rules.
Conclusion
The Canara Bank 310 Day FD in 2026 offers a safe and stable short-term investment option for risk-averse savers. With fixed returns and limited tenure, it provides an alternative to savings accounts for those looking to earn better interest on idle funds.
Before investing, check the latest interest rates, tax impact, and premature withdrawal conditions to ensure it aligns with your financial goals.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Interest rates and terms may change. Always verify details with official bank sources before investing.