Recurring deposits are a convenient way for individuals to build up their savings systematically over time under lock-in interest rates. Canara Bank offers RD options at competitive interest rates that vary based on the customer segment and the tenure. The Bank offers recurring deposit (RD) accounts for the general public, senior citizens, and non-resident Indians (NRIs).
The Canara Bank RD Interest Rates for the general public range from 6.85% per annum (p.a.) to 7.25% p.a. Senior citizens receive an additional 0.50% interest per year on their RD accounts.
Canara Bank RD Interest Rates 2024
Below are the revised RD Rates for Canada Bank presented in a tabular format:
| RD Deposit Tenure | Rate of Interest (% p.a.) General Public |
Rate of Interest (% p.a.) Senior Citizen |
|---|---|---|
| 1 Year Only | 6.85 | 7.35 |
| 444 Days | 7.25 | 7.75 |
| Above 1 Year to less than 2 Years | 6.85 | 7.35 |
| 2 Years & above to less than 3 Years | 6.85 | 7.35 |
| 3 Years & above to less than 5 Years | 6.80 | 7.30 |
| 5 Years & above to 10 Years | 6.70 | 7.20 |
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Canara Bank RD Interest Rates For NRI
Canara Bank offers competitive interest rates for Non-Resident Indians looking to open a Recurring Deposit Account with the bank.
| Tenure | Interest Rates % (p.a.) |
|---|---|
| 1 Year | 6.90% |
| 444 Days | 7.25% |
| Above 1 Year to less than 2 Years | 6.90% |
| 2 years to less than 3 years | 6.85% |
| 3 years to less than 5 years | 6.80% |
| 5 years to 10 years | 6.70% |
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*Note: The above interest rates are for investments less than Rs.2 crore and are effective from 12 August 2023.Are you looking for a personal loan?
Features of Canara Bank Recurring Deposit
This deposit scheme offers a flexible option to save money over time and earn interest. See the table below for detailed unique features & scheme's benefits.
| Feature | Description |
|---|---|
| Minimum Deposit | ₹50 per month (and multiples of Rs. 50) |
| Maximum Deposit | No limit |
| Deposit Type | Fixed monthly installments for a set period |
| Minimum Period | 6 months |
| Maximum Period | 10 years (120 months) in increments of 3 months |
| Nomination | Available |
| Loan Facility | Available for up to 90% of the deposit balance |
| Tax Deducted at Source (TDS) | Applies based on current income tax rules |
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Canara Bank RD Calculator
Recurring Deposit online (RD) calculator is a powerful tool that helps customers determine the potential maturity value of their recurring deposit investments.
| Invested Amount | : ₹1,000 |
| Total Interest | : ₹532 |
| Maturity Amount | : ₹12,532 |
To use the Canara Bank RD calculator, follow these simple steps:
- Step 1: Enter the deposit amount.
- Step 2: Input the RD interest rate.
- Step 3: Choose the investment tenure.
- Step 4: Click the calculate button.
RD Interest Rates of Top Banks
Here is a comprehensive list of RD interest rates from top banks:
| Bank | For General Public (p.a) | For Senior Citizens (p.a) |
|---|---|---|
| SBI RD Interest Rates | 6.50% to 7.00% | 7.25% to 7.50% |
| ICICI RD Interest Rates | 4.75% to 7.20% | 5.25% to 7.75% |
| HDFC RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Kotak Mahindra Bank RD Interest Rates | 6.00% to 7.40% | 6.50% to 7.90% |
| Axis Bank RD Interest Rates | 5.75% to 7.20% | 6.25% to 7.85% |
| Bank of Baroda RD Interest Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| Punjab National Bank RD Interest Rates | 6.00% to 7.25% | 6.50% to 7.75% |
| IDBI Bank RD Interest Rates | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank RD Interest Rates | 6.15% to 7.25% | 6.65% to 7.75% |
| Indian Bank RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank RD Interest Rates | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India RD Interest Rates | 5.75% to 6.50% | 6.25% to 7.00% |
| Yes Bank RD Interest Rates | 6.10% to 7.75% | 6.60% to 8.25% |
| Bandhan Bank RD Interest Rates | 4.50% to 7.85% | 5.25% to 8.35% |
| Bank of India RD Interest Rates | 4.50% to 6.00% | 5.00% to 6.50% |
| Bank of Maharashtra RD Interest Rates | 5.50% to 6.25% | 6.00% to 6.75% |
| City Union Bank RD Interest Rates | 6.25% to 7.00% | 6.50% to 7.50% |
| DBS Bank RD Interest Rates | 6.00% to 7.50% | 6.50% to 8.00% |
| Dhanalakshmi Bank RD Interest Rates | 6.50% to 7.25% | 6.50% to 7.75% |
| Federal Bank RD Interest Rates | 5.75% to 7.50% | 6.25% to 8.00% |
| IndusInd Bank RD Interest Rates | 7.00% to 7.75% | 7.50% to 8.25% |
| Jammu and Kashmir Bank RD Interest Rates | 5.75% to 7.10% | 6.25% to 7.60% |
| Karnataka Bank RD Interest Rates | 5.80% to 7.40% | 6.20% to 7.90% |
| Karur Vysya Bank RD Interest Rates | 6.25% to 7.50% | 6.25% to 8.00% |
| Saraswat Bank RD Interest Rates | 7.00% to 7.50% | 7.50% to 8.00% |
| South Indian Bank RD Interest Rates | 5.00% to 7.40% | 5.50% to 7.90% |
| TMB RD Interest Rates | 6.75% to 7.75% | 7.00% to 8.25% |
| Post Office RD Rate | 6.50% | 6.50% |
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Note: The interest rates are subject to change. Do visit the official website for updated rates.Did you know that besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
Tax Benefit on Canara Bank RD Interest Rates
The bank will deduct income tax at source (TDS) if the interest earned on FD and RD accounts from all branches exceeds Rs.40,000 per financial year for regular customers and Rs.50,000 for senior citizens. The applicable TDS rate is 10%, but due to the pandemic, it has been reduced to 7.5% from May 2020 to March 2021. Customers can submit Form 15G or 15H to request the bank not to deduct tax at source, but only if their annual income is within the basic exemption limit.
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Canara Bank RD Interest Calculation
To calculate the total Maturity Value (M) of an RD, including the interest earned, you can use the following formula:
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )
Where:
M = Maturity Value
R = Monthly Installment
n = Number of quarters
i = Rate of interest (per annum)
This formula takes into account the monthly deposit amount, the interest rate, and the duration of the RD (in quarters) to determine the final maturity value.
Enter the relevant values, you can easily calculate the expected returns on your RD investment. This allows you to compare different RD options and make an informed decision about the best investment for your financial goals.
Example:
Let's calculate the interest earned on a recurring deposit with the following details:
Given:
Monthly deposit (R) = ₹500
Deposit period (n) = 3 years * 4 quarters/year = 12 quarters
Interest rate (i) = 7.5% p.a. = 7.5 / 100 = 0.075 (converted to decimal)
Using the compound interest formula:
M = R [(1 + i)^n - 1] / (1 - (1 + i)^(-1/3))
Calculating the maturity value (M):
M = 500 * [(1 + 0.075)^12 - 1] / (1 - (1 + 0.075)^(-1/3))
M = ₹16,653.79
Total deposit:
Total deposit = Monthly deposit * Number of deposits
Total deposit = ₹500/month * 12 quarters = ₹6,000
Interest earned:
Interest = Maturity value - Total deposit
Interest = ₹16,653.79 - ₹6,000
Interest = ₹10,653.79
Therefore, with a 7.5% interest rate p.a., you would earn approximately ₹10,653.79 in interest over the 3 years.
Types of Canara Bank RD Schemes
Canara Bank offers a comprehensive range of recurring deposit schemes to meet the varied investment needs of its customers. Here are the different types of RD schemes available at Canara Bank:
Recurring Deposit:
This is a regular RD scheme where you need to deposit a minimum of Rs.50 per month for a specified period to earn applicable interest. The minimum duration for the account is six months, and then in multiples of three months after that. The maximum duration is 120 months.
Canara Dhanvarsha – A Flexi RD Scheme:
This flexible RD scheme requires a minimum monthly deposit of Rs.1,000 and then in multiples of Rs.100. The maximum monthly installment allowed is Rs.1 lakh. The minimum deposit period is one year, and then in multiples of three months after that. The interest is compounded quarterly in this case.
Nitya Nidhi Deposit Scheme:
The Pigmy Deposit Scheme from Syndicate Bank has been merged with the New Nitya Nidhi Deposit (NND) Scheme of Canara Bank effective from 1 April 2020. The scheme aims to gather the small savings of daily savers and includes daily door collection through bank agents. The minimum monthly contribution is Rs.50. The tenure for the account is 63 months. An interest rate of 2.50% p.a. is applicable from 1 October 2020.
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Eligibility Criteria to Open Canara Bank RD Account
To be eligible to open a Canara Bank Recurring Deposit (RD) account, you must meet the following eligibility criteria:
- Eligible entities: Individuals, Joint account holders, Guardians of minors, Hindu Undivided Families (HUF), Proprietorship firms, Companies, Associations, Trusts, Institutions
- Non-resident Indians (NRIs) can open an RD account, but it must be through their NRE or NRO accounts.
- Minors can open an RD account, but it must be supervised by their parents or legal guardians.
Documents Required For Canara Bank RD Account
The following documents are required to be submitted:
- Application in the Banks' prescribed form.
- Copy of PAN Card / Form 60 or 61 (if the customer does not have a PAN Card).
- Photograph of Depositor/s (2 copies).
- Proof of Identity and address as per KYC Norms.
- Any other related documents as applicable to proprietorship concern, Partnership Firm, Company, HUF, etc.
Open Canara Bank RD Account
To open a Canara Bank RD account, you need to go to a Canara Bank branch and submit the following documents:
- Application form provided by the bank
- Copies of PAN card or Form 60 or 61 if PAN is not available
- Two passport-sized photographs
- Proof of identity
- Proof of address
- Additional documents as per the applicant's profile.
Canara Bank RD Premature Withdrawal
If an RD account is opened on or after 4 February 2011, a 1% premature withdrawal penalty will be charged. The RD interest will be paid after deducting the penal rate (1%) from the interest rate applicable on the date of the deposit. There is no penalty for premature closure of deposits opened under the Flexi Recurring Deposit Scheme. The applicable interest rate will be the interest rate applicable for the duration for which the RD remained with the bank at the time of account opening, or at the contracted rate, whichever is lower.
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FAQs of Canara Bank RD Account
The interest rates for Canara Bank RDs range from 6.15% per annum (p.a.) to 7.25% p.a. for the general public, and 6.65% p.a. to 7.75% p.a. for senior citizens (who receive an additional 0.50% interest per year).
Yes, the minimum deposit amount to open a Canara Bank RD account is Rs.50 per month or its multiples.
Yes, Canara Bank allows premature withdrawal of RD funds, but it may attract a penalty charge.
Yes, Canara Bank RDs offer nomination benefits, allowing customers to nominate a beneficiary for their account.
Yes, Canara Bank offers loans against the balance in the RD account, providing customers with additional financial flexibility.
To use the Canara Bank RD calculator, visit the bank's website, input the desired monthly deposit, tenure, and interest rate, and the calculator will provide the projected maturity value.
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