Kotak vs Canara FD Rates — Which is Better in 2026?
Kotak offers 7.20% FD rate (1-year) vs Canara at 6.85%. Kotak gives you ₹350 more interest per year on a ₹10L deposit. Both banks are RBI-regulated and DICGC insured up to ₹5L per depositor.
Last updated: April 6, 2026
Kotak
7.20%
FD rate (1 year)
✓ Better dealCanara
6.85%
FD rate (1 year)
Kotak vs Canara FD Rates — Detailed Comparison
| Feature | Kotak | Canara |
|---|---|---|
| FD Rate (1Y) | ✓7.20% | 6.85% |
| Account Opening | No fee | No fee |
| Tenure | 7 days – 10 years | 7 days – 10 years |
| Eligibility | Any individual, joint, HUF | Any individual, joint, HUF |
FD Rate (1Y)
Kotak
7.20%
Canara
6.85%
Account Opening
Kotak
No fee
Canara
No fee
Tenure
Kotak
7 days – 10 years
Canara
7 days – 10 years
Eligibility
Kotak
Any individual, joint, HUF
Canara
Any individual, joint, HUF
Verdict
Kotak offers the better FD rate (7.20%) vs Canara (6.85%). Both are DICGC insured up to ₹5L. If you have more than ₹5L to park, split across banks to maximise insurance coverage. Senior citizens get an additional 0.50% at most banks — always check the senior citizen rate separately.
Frequently Asked Questions
Which bank gives higher FD interest — Kotak or Canara?+
Kotak offers a higher FD rate. Kotak pays 7.20% and Canara pays 6.85% on a 1-year FD. For longer tenures (3-5 years), rates may differ — always check the bank's rate card for your specific tenure.
Is FD in Kotak or Canara safer?+
Both banks are RBI-regulated and deposits are insured by DICGC up to ₹5 lakh per depositor per bank. For amounts above ₹5L, consider splitting across both banks to maximise insurance coverage.
What is the maturity amount on a ₹1L FD for 1 year?+
At Kotak's rate of 7.20%, a ₹1L FD matures to approximately ₹1,07,397. At Canara's rate of 6.85%, it is ₹1,07,028. Interest is taxable as per your income tax slab.
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Disclaimer: Interest rates shown are indicative as of April 2026 and subject to change without notice. Actual rates depend on your credit score, income, and bank policy. This is for informational purposes only and does not constitute financial advice. Always verify rates with the bank before applying.