Canara Bank Recurring Deposit (RD) Rates

Canara Bank, established in 1906, is one of the biggest public sector banks in Karnataka. It offers a wide range of deposit schemes, including Recurring Deposit (RD) schemes, which are ideal for risk-averse investors looking for guaranteed returns.

In this article, let us take a closer look at the Canara Bank RD interest rates, interest calculation, eligibility and much more. 

Canara Bank Recurring Deposit Scheme Highlights for 2024

Here are some of the key highlights of the Canara Bank Recurring Deposit Scheme:

Canara Bank RD Interest Rates 2024

Canara Bank offers an attractive interest rate on recurring deposits, allowing customers to deposit their hard-earned income regularly in a safe and secure deposit scheme. Here are the applicable recurring deposit rates for 2024:

Canara Bank Senior Citizen RD Interest Rate

Here are the interest rates for Canara Bank senior citizens RD:

Types of Canara Bank RD

Canara Bank offers three main types of recurring deposit accounts, each designed with distinct features to meet various savings needs, as outlined below:

• Standard Recurring Account:

It is the regular recurring deposit account offered by Canara Bank, offering interest rates ranging from 6% to as high as 7.75% per annum (senior citizens). The minimum monthly amount under this scheme is Rs. 50 and in multiple of Rs. 50, while there is no upper limit. Moreover, the maximum duration of recurring deposits is 120 months.

• Nitya Nidhi Deposit Scheme:

The Pigmy Deposit scheme of the syndicate bank and the New Nitya Nidhi Deposit scheme of Canara Bank are fused together to form a new recurring deposit scheme known as the Nitya Nidhi Deposit Scheme. 

This initiative aims to encourage small savings and is specifically designed for daily savers with modest means. It features a convenient daily door-to-door collection service. Authorised agents from the bank will collect your savings at your doorstep, either daily or at intervals that suit your preferences.

• Canara Bank Dhanvarsha Recurring Deposit Scheme (Flexi RD Scheme):

One of the most important RD schemes comes with numerous perks such as competitive interest rates, loan facility up to 90% of the maturity value and more. The minimum amount required under this scheme is Rs. 500 and the maximum amount is Rs. 1 lakh. Additionally, the deposit tenure ranges from a minimum of 1 year and in multiple of 3 months thereafter, the maximum limit is 10 years.

Features of Canara Bank RD Interest Rates 

You can get numerous perks and benefits by starting a recurring deposit account with Canara Bank. Here are the features and benefits listed below:

• Start your recurring deposit account with an amount as low as Rs. 50.
• The rate of interest is compounded every quarter, facilitating higher compounding benefits.
• Nominate a family member to receive the final amount upon maturity.
• The deposit period ranges from a minimum of 6 months to a maximum of 10 years.
• Get a loan against the RD facility of up to 90% of the recurring deposit balance.
• Canara Bank offers attractive interest rates on RDs, it can go as high as 7.75% per annum for senior citizens and 7.25% per annum for the general public.

How to Calculate Canara Bank RD Interest Rate?

The Canara Bank RD interest rates are determined on a quarterly compounding basis. Here is the formula that you can use to determine your maturity amount manually.

A = P x (1 + r/n) ^ (n x t)

Where:

• A = Maturity Value
• P = Deposit Amount
• r = Interest rate
• n = Number of times interest is compounded
• t = Tenure

Let us understand the calculation of Canara Bank RD interest rates with the help of an example:

Ms Rinika makes a monthly RD of Rs. 1,000 for a duration of 4 years. The rate of interest is 6.80% per annum; now let us find out the interest earned by Ms Rinika over the tenure.

Where:

• P = Rs.48,000 (Rs.1,000 x 48) 
• r = 0.068 (6.80%) 
• n = 4

A = P x (1 + r/n) ^ (n x t) = 48,000 x (1 + 0.068/4) ^ (4 x 48)

A = Rs. 55,252

Total amount deposited by Ms Rinika = Rs. 1000 × 48 = Rs. 48,000.

Interest earned = Rs. 7,252.

You can conveniently calculate this within seconds using the Canara Bank RD Calculator. 

Eligibility for Opening Canara Bank RD Account

Here are the eligible criteria for availing an RD and benefiting from attractive Canara RD interest rates:

• Individual (single account/joint account)
• Minors (Guardians on behalf of them)
• Hindu undivided families
• Private limited company
• Proprietorship firm
• Any institution
• An association or trusts

Documents Required for Opening Canara Bank RD Account

Now that you have an idea of the Canara RD interest rates 2024, let us have a closer look at the documents required to open a recurring deposit account with Canara Bank:

• Identity proof
• Proof of address as KYC norms
• PAN card copy / Form 60 or 61 (if PAN card is not available)
• Any other relevant document
• Duly filled RD application form

How to Open Canara Bank RD Account?

Let us have a quick look at how you can open a recurring deposit account with Canara Bank via online mode:

1. Login to the Canara Bank net banking portal.
2. Go to the ‘Deposit’ section and choose the ‘Recurring Deposit’ option.
3. After that, select the savings account from which the money is to be deducted and complete the necessary information on the account opening form.
4. Once all of your information has been entered, submit the form.
5. Upon successful submission, the amount will be debited from your selected savings account, and you will receive a confirmation via SMS.

This auto-debit will continue regularly throughout the tenure of your RD account.

How to Close Canara Bank RD Account?

Here is a detailed step-by-step guide on how to close the RD account in Syndicate Bank:

1. Visit the Canara Bank branch, where you have an RD account and fill out an RD account closure form. 
2. Attach all detailed copies of KYC documents as proof of your identity and address in the RD closure form. The account holders may also be asked to self-attest all these documents. 
3. Your RD account closing form will be processed, and the account will be closed.

Once your RD account is closed, the bank usually sends an email to your registered email address. 

Benefits of Canara Bank RD Account

The Canara Bank RD Account offers several benefits on the RD account. Here is the detailed overview:

• Attractive Rates of Interest

With an RD account in Canara Bank, you can earn competitive rates of interest similar to fixed deposits. This thereby allows stable growth of funds.

• Systematic Savings

Opening an RD account with Canara Bank allows for monthly savings, thereby providing stability in your financial goals and objectives.

• Flexible Tenure

Canara Bank provides flexible tenure on RD accounts ranging between 6 months to 10 years, catering to both short-term and long-term needs.

• Partial Withdrawal

Canara Bank opts for a partial withdrawal facility during periods of financial emergencies.

Canara Bank RD Premature Withdrawal Rules

You can make premature withdrawals from your recurring deposit account anytime during the tenure of your RD, however, premature withdrawal is subject to penalty charges. The premature account closure attracts a penalty charge of 1%, your RD interest rate will be reduced by 1% on the applicable interest rate.

Moreover, in case of a delay in instalments, there is also a penalty of Rs. 1.50 per Rs. 100 installments per month will be charged for RD accounts with a tenure of five years. For RD accounts with a tenure exceeding five years, a penalty of Rs. 2 per Rs. 100 instalments per month will be applicable. 

If more than four instalments are delayed, the RD account will be repaid at simple interest on a monthly basis. However, this rule does not apply to RD accounts opened on or after April 1, 2020.

Canara Bank, one of the leading public sector banks, offers lucrative interest rates on recurring deposits. It facilitates a systematic and secure way to save and grow your hard-earned money. Whether for a short-term goal or a long-term objective, the flexible tenures and attractive interest rates ensure that depositors can earn steady returns. Moreover, the assured Canara bank RD interest rates throughout the deposit period provide account holders with a clear understanding of the growth, facilitating better financial planning.