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Canara Bank RD Interest Rates 2020

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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 5.75% 6.25%
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 Bank

Given 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 5.75%
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.

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

  1. 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.

  2. 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.

  3. 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
  4. 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.

  5. 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.

  6. Is it possible to renew an RD account?

    Yes, however, there are certain types of RD account that don’t have a renewal option.

  7. 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,

  8. 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.

  9. 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.

  10. Is it possible to withdraw an RD account before the maturity date?

    Yes, however, the liquidation will be subject to premature closure charges.

  11. Can I open an RD account for a minor?

    Yes, a guardian is allowed to open an RD account on behalf of a minor.

  12. 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.

  13. How can I contact Canara Bank?

    With pan-India presence, Canara Bank can be contacted through telephone, email, or a branch visit.

News About Canara Bank Recurring Deposit Interest Rates

  • Canara Bank Slashes Term Deposit Rates

    Canara Bank has reduced the term deposit rates. The 1 year FD rate has been slashed by 0.10%, bringing it down to 6.9%. Canara Bank is now in tandem with HDFC Bank and ICICI Bank. As per a senior official, bank do not wish to keep the high cost deposits anymore. The deposit rates have now been aligned with the reduced lending rates.

    2 May 2017

  • Canara Bank’s Recurring Deposit Rates Revised

    Canara Bank have revised their Recurring Deposit interest rates. Recurring deposits with a tenure of 2 years will now pay interest of 7.75% (senior citizens will receive 8.25%). The old rate for this tenure was 8% (8.50% for senior citizens).

    The rate for a 3 year tenure has also been changed to 7.75% (8.25% for senior citizens) from the old rate of 8% (8.50% for senior citizens).

    The rates of interest for the other Recurring Deposit tenures remain unchanged.

    2 March 2016

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Canara Bank RD Interest Rates Reviews

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  • Canara Bank Recurring Deposit
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have been holding an Recurring deposit in the CANARA BANK for few years now. As I liked CANARA BANK very much I hold this here. All services are good in this CANARA BANK. Every month I pay Rs. 60000 to this. My interest for this recurring deposit is 8.5% - 9%.
    Was this review helpful? 8
    , bangalore
    Reviewed on Sep 30, 2017
  • Canara Bank
    Canara Bank Recurring Deposit
    "My salary account"
    0.5 3.0/5 "Satisfactory"
    With CANARA I had opened a RD, as it was my salary account.I had to deposit around rs 60 per month for this account. I was holding it for 2 to 3 years and later closed as I was experiencing some financial crisis at that time. Closure procedure was very simple I had to visit the branch show that RD book and they will credit the interest and close the account.
    Was this review helpful? 10
    , tuticorin
    Reviewed on Oct 03, 2016
  • Canara Bank Recurring Deposit
    "Excellent "
    0.5 5.0/5 "Blown Away!"
    I have invested in retail investment scheme of Canara Bank, where it is giving 8.5% interest rate for Recurring deposit for the lock in period of 5 years. I have taken the flexible plan in which I get the income tax benefit. There is no activation charges. The minimum amount to invest is Rs.1000. We can avail the facility through the online. We can liquid the cash any time without any charges through online itself.
    Was this review helpful? 13
    , bangalore
    Reviewed on Jun 16, 2016
  • Canara Bank Recurring Deposit
    0.5 5.0/5 "Blown Away!"
    From the last twenty years of time I am having the recurring deposit account with the Canara bank. The interest rate for the recurring deposit is also a good one with them and the lock in period ranges from 3 months to 7 years of time.,
    Was this review helpful? 6
    , bangalore
    Reviewed on Mar 18, 2016
  • Canara Bank Recurring Deposit
    "Good for me but need more convenient...."
    0.5 4.0/5 "Great!"
    I had a relationship with Canara bank which was almost completed 2 years. I am using my Recurring account only for a saving. 5k is the minimum transaction and interest was 8%. Formalities are huge in Canara bank and it should be more convenient.
    Was this review helpful? 5
    , bangalore
    Reviewed on Feb 03, 2016
  • Canara Bank Recurring Deposit
    "New experience "
    0.5 3.0/5 "Satisfactory"
    I pay around 5000Rs for the recurring deposit I hold with canara bank.I make this payment on every month.I am not sure about the interest rate applied but I expect around 5-6% as interest with Canara Bank.I would like to recommend about Canara Bank as government bank service.
    Was this review helpful? 6
    , new delhi
    Reviewed on Oct 22, 2015
  • Canara Bank Recurring Deposit
    "Can do better!!!"
    0.5 4.0/5 "Great!"
    My spouse is having home loan with Canara bank so I have chosen this bank for Recurring Deposit. Interest rate for RD is 9% and the tenure period is 12 months. I opened it recently like four months ago by visiting the branch. Customer service of Canara bank is not much recommendable.
    Was this review helpful? 6
    , chennai
    Reviewed on Feb 23, 2015
  • Canara Bank Recurring Deposit
    "Good service"
    0.5 4.5/5 "Excellent!"
    For 5 years I holding RD account with Canara bank. Previously I visited their website and it was quite difficult to access but now they improved it. Since its nationalized bank interest rate is very low, They have to improve on accumulated interest ,Apart this gold loan department doing very good support and lot of percentage offers
    Was this review helpful? 3
    , bangalore
    Reviewed on Nov 01, 2014
  • Canara Bank Recurring Deposit
    "Good earnings"
    0.5 2.0/5 "Expected more"
    I have opened a RD account with Canara Bank. This account was opened at the Branch. Every month I am supposed to pay a minimum amount of rs 1000 and the amount would be debited from my savings account automatically every month. Rate of interest for this RD account is 8.75% and I would even more happy if they increase it as well.
    Was this review helpful? 8
    , ghaziabad
    Reviewed on Oct 27, 2014
  • Canara Bank Recurring Deposit
    "Good service"
    0.5 4.0/5 "Great!"
    I opened one account from canara bank to save my amount . I thought canara bank was safe and secure. Hence I opened one recurring deposit account with them . I dont have much idea about the online banking . I will just deposit the amount and I am earning 8 % as interest rate. Quite good experience
    Was this review helpful? 8
    , mumbai
    Reviewed on Oct 25, 2014
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