Canara Bank offers recurring deposit schemes for the general public, senior citizens, and Non-Resident Indians. Senior citizens are offered 0.50% additional interest per annum. Interest rates range from 4.50% to 5.35% for the general public. Recurring deposits can be opened for a tenure ranging from 6 months up to 10 years in multiples of 3 months. Deposits can be opened for as little as Rs.50 per month and multiples thereof.
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Given below is a list of interest rates offered by Canara Bank on its RD scheme according to the tenure of the deposit:
|Tenure||Regular RD Interest Rates (p.a.)||Senior Citizen RD Interest Rates (p.a.)|
|180 days to less than 1 year||4.50%||5.00%|
|1 year to less than 3 years||5.25%||5.75%|
|3 years to 10 years||5.35%||5.85%|
*The above interest rates are for investments less than Rs.2 crore and are effective 1 October 2020
Interest Rates offered to NRIs who wish to Open an RD Account with Canara BankGiven below are the rates of interest charged by Canara Bank for Non-Resident Indians who wish to open a Recurring Deposit Account at Canara Bank:
|Tenure||Regular RD Interest Rates (p.a.)|
|1 year to less than 3 years||5.35%|
|3 years to 10 years||5.35%|
*The above interest rates are for investments less than Rs.2 crore and are effective from 1 October 2020.
*The above interest rates are for investments less than Rs.2 crore.
Know more about Recurring Deposit
Factors for Opening a Canara Bank RD Account
In order to open an RD account, you’re required to meet the eligibility criteria specified by the bank. The following factors are essential to consider before opening Canara Bank Recurring Deposit Account:
- Eligibility: Canara Bank RD account is available for any individual, joint account, Hindu Undivided Family (HUF), guardian of a minor, a company, an association, proprietorship firm, a trust, or any institution who fulfils the eligibility requirements.
- Deposit Amount: An account can be opened for a minimum of Rs.50 per month for a fixed term without any cap on the maximum amount.
- Term of Deposit: An RD account can be opened for a minimum period of 6 months and maximum of up to 120 months or 10 years, in multiples of three.
- Rate of Interest: Depending on the deposit amount and the account term, the interest will be compounded on a quarterly basis. Senior citizens are entitled to an additional 0.50% interest rate over and above the regular interest rate for individuals below 60 years of age.
- Premature Withdrawal: If the account is liquidated before the maturity, the account will be subject to premature withdrawal rd charges of 1% that are opened on or before 04 February 2011. Additionally, you’ll earn interest at 1% less than the interest rate set on the date of deposit and as applicable for the period.
Documents Required to Open Canara Bank RD Account
- The application form in the bank’s prescribed form for opening a recurring deposit account in Canara bank.
- A copy of your PAN card.
- If you do not have a PAN card, then you must submit the Form 60/61.
- 2 passport size photographs of the applicant.
- Address proof of the applicant along with the address according to KYC rules.
- Any documents that the bank may require from the proprietorship firm, the company, trust, the association or institution.
How to Apply for a Canara Bank RD Account?
In order to apply for an RD account, you are required to visit any of the Canara Bank’s branch with the following documents –
- Bank specified application form.
- PAN card copies or Form 60 or 61 in the absence of PAN.
- 2 copies of photographs.
- Proof of identity.
- Proof of address.
- Other documents based on the applicant’s profile.
Types of Canara Bank Recurring Deposit
Regular Recurring Deposit: This is the regular recurring deposit scheme offered by Canara bank. You can start investing in this account with a minimum monthly deposit of Rs.50. There is no cap on the maximum amount which can be invested in the RD account.
Canara Bank Dhanvarsha RD Scheme: Canara Dhanvarsha is a flexible recurring deposit scheme which allows the account holders to deposit more than the monthly required amount. Under this scheme, the customer can choose to invest surplus/bonus funds into their Canara Dhanvarsha account. The extra deposits will reward the account holder with additional interest over and above the contractual interest on the required monthly deposits.
Benefits of An RD Account
An RD account is one of the ideal avenues for saving money conveniently. Moreover, the nest-egg built through an RD account with a systematic and regular saving approach can help in achieving your financial goals to a large extent.
RD accounts are popular for various features which are beneficial to the account holder. A customer can open an RD account and earn interest on it by paying a small amount every month for a specific duration of time. At maturity, the account holder will earn interest on the RD account based on the deposit value, the tenure of the account, and the terms and conditions specified by the bank.
FAQs on Canara Bank Recurring Deposit
Is there a difference between the interest rates for RD and FD?
While most banks offer the same interest rates on RDs and FDs, there are some banks which offer different rates.
What are the limits on the minimum and maximum deposits?
An RD account can be opened for as low as Rs.50 per month there is no limit on the maximum amount which can be deposited in the account of deposits.
Is it possible to renew an RD account?
Yes, however, there are certain types of RD account that don’t have a renewal option.
Is nomination facility available under an RD account?
Yes, you can either add the nomination when while opening the RD account or before the maturity of the account.
Can I take a loan against an RD account?
Yes, you can avail a maximum of 90% of the total deposit balance as the loan amount.
Are the interest rates same for a Senior citizen?
Senior citizens are entitled to an additional interest of 0.50%.
Is it possible to withdraw an RD account before the maturity date?
Yes, however, the liquidation will be subject to premature closure charges.
Can I open an RD account for a minor?
Yes, you are allowed to open an RD account on behalf of a minor.
How can I contact Canara Bank?
With pan-India presence, Canara Bank can be contacted through telephone, email, or a branch visit.
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RD Other Pages
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- Advantages of Recurring Deposit
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- SBI Flexi RD Schemes