Canara Bank Recurring Deposit (RD) is an easy small-saving scheme you can choose if you’re looking to start saving money. You can open an Recurring Deposit account with the Canara Bank for tenures between 6 months and 120 months, in multiple of 3 months. You can start saving with a minimum of Rs.50 per month and in multiples thereof, and there’s no maximum amount.
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||5.10%||5.60%|
|1 year 1 day to less than 3 years||5.75%||6.25%|
|3 years 1 day to 10 years||5.70%||6.20%|
*The above interest rates are for investments less than Rs.2 crore and are effective 7th May 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||Rate of Interest (% per annum)|
|1 year 1 day to less than 3 years||5.75%|
|3 years 1 day to 10 years||5.70%|
*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.
Canara Bank Dhanvarsha RD Scheme is available for both residents as well as non-resident Indians. By making a minimum monthly deposit of Rs.1,000 up to a maximum of Rs.1 lakh, the Canara Dhanvarsha RD account can be opened for a minimum of 1 year up to a maximum of 10 years. This scheme doesn’t provide any special interest rates for senior citizens. Facilities such as nomination, loan facilities, etc. are applicable under this scheme.
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
- How can I open an RD account in Canara Bank?
Customers/applicants can visit any of the Canara Bank’s branch to open an RD.
- Is there a difference between the interest rates for RD and FD?
No, most banks provide similar interest rates for both RD and FD accounts.
- What are the documents required for opening an RD account?
In addition to the filled in application form, applicants are required to have the following documents:
- Pan Card copy or Form 60 or 61 (in case of no PAN)
- 2 passport size photographs of the applicant
- Proof of identity and proof of address
- Specified documents based on the applicant’s profile
- What are the limits on the minimum and maximum deposits?
An RD account can be opened for as low as Rs.50 per month while there is no limit on the maximum amount of deposits.
- What are the limits of the RD account period?
An RD account can be opened for a minimum period of 6 months to a maximum period of 10 years.
- 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 while opening the RD account or before the maturity by contact the branch,
- Can I take a loan against an RD account?
Yes, a customer can avail a maximum of 90% of the total deposit balance as the loan amount. It is a secured loan where the loan is given against the FD account, hence the deposits in the FD will be held as collateral.
- Are the interest rates same for a Senior citizen?
Senior citizens are entitled to an additional 0.50% of interest rates on any of the FD accounts.
- 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, a guardian is allowed to open an RD account on behalf of a minor.
- How much will I be charged for the premature withdrawal of an RD account?
Canara Bank levies a 1% premature withdrawal charge on accounts that are opened on or after 04 February 2011. Also, such prematurely closed accounts will earn 1% lesser interest rate than it was set at the date of deposit and as applicable for the period.
- How can I contact Canara Bank?
With pan-India presence, Canara Bank can be contacted through telephone, email, or a branch visit.
RD Interest Rate Pages
- United Bank RD Interest Rates
- Uco Bank RD Interest Rates
- Allahabad Bank RD Interest Rates
- Central Bank RD Interest Rates
- Federal Bank RD Interest Rates
- Indian Bank RD Interest Rates
- Andhra Bank RD Interest Rates
- Kotak Mahindra RD Interest Rates
- Syndicate Bank RD Interest Rates
- IOB RD Interest Rates
- City Union Bank RD Interest Rates
- Citybank RD Interest Rates
- Indusind Bank RD Interest Rates
- Corporation Bank RD Interest Rates
- BOM RD Interest Rates
RD Other Pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes