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Canara Bank Recurring Deposit

Canara Bank offers the option of opening a recurring deposit with them. An account can be opened for a period that ranges between 6 months and 10 years. The interest offered on such deposits by the lender ranges between 5.50% p.a. to 6.30% p.a.

Rate of return offered by Canara Bank on RDs

The table listed below contains the interest rate offered by Canara Bank on recurring deposits depending on the tenure:

Tenure Interest rate of general public (p.a.) Interest rate of senior citizens (p.a.)
181 days to less than 12 months 5.50% 6.00%
12 months 5.85% 6.35%
12 months 1 day to less than 24 months 5.85% 6.35%
24 months 1 day to less than 36 months 5.85% 6.35%
36 months 1 day to less than 60 months 5.80% 6.30%
60 months to 120 months 5.80% 6.30%

Note: The mentioned rates are for deposits less than Rs.2 crore.

Types of Recurring Deposits offered by Canara Bank

Canara Bank offer two types of recurring deposits. They are:

  • Recurring Deposits
  • Canara Dhanvarsha

Features of Recurring Deposits

The features of Recurring Deposits are listed below:

  • Can be opened with a minimum deposit of Rs.50 per month.
  • Loan up to 90% of the available deposit balance.
  • Nomination facility available.
  • TDS applicable.

Features of Canara Dhanvarsha

Listed below are the features of Canara Dhanvarsha

  • Minimum tenure is 12 months.
  • No additional interest to senior citizens
  • TDS not applicable.
  • No penalty for delay in payment of monthly instalments.
  • Up to 90% of the available deposit balance available as loan.

Who can open a Recurring Deposit account with Canara Bank?

An recurring deposit account with Canara Bank can be opened by:

  • A resident individual (singly or jointly)
  • Non-resident external customer
  • Guardian on behalf of a minor
  • Hindu Undivided Family (HUF)
  • Company/proprietorship firm
  • An association, institution or a trust

How to open an RD account with Canara Bank?

You can open a RD account with Canara bank by:

  • Visiting the bank branch along with the necessary documents
  • Using the net banking facility

Documents Required

The documents which need to be submitted are listed below:

  • Copy of PAN (not required for NRE customers)
  • Form 60 or 61 if PAN not available (not required for NRE customers)
  • Two passport sized photograph
  • Identity proof
  • Address proof

Eligibility Criteria

  • Non-Resident- External Customers can apply.
  • Resident Individuals, Guardian on behalf of minor, Joint Account, HUF (Hindu Undivided Families), Trust, Company / Firms, Association, Institutions, etc. can apply for a RD with Canara Bank.

Interest Rates offered on Canara Bank’s Recurring Deposit

The Bank offers competitive interest rates which can be subject to fluctuations from time to time. Compound interest is used to calculate interest that depositor is liable to receive on maturity of the RD. As applicable to term deposits of various tenures prevailing from time to time, interest is compounded quarterly.

Flexible RD from Canara Bank

Canara Dhanvarsha is a flexible Recurring Deposit that and comes with the facility to deposit additional instalments on a monthly basis, as per the depositors’ convenience and earn a contracted rate of interest for additional installments made as well.


Canara Bank RD scheme is open to NRE customers as well, but the mode of deposit differs. For NRE customers, the amounts pertaining to the initial deposit, regular instalment and/or additional instalment to the Recurring Deposit account are to be debited from NRE Savings Account only or as other approved inward remittances.

Nomination for RD

Nomination facility for RD account is available. If the nominee is a minor the depositor should also name a guardian to act on behalf of the nominee.

Short-term Recurring Deposit Interest Rates

RD accounts opened for a period that ranges between 6 months and less than a year are known as short-term recurring deposits. The interest offered on such tenures by Canara Bank is 5.50% for general citizens and 6% p.a. for senior citizens.

Medium Recurring Deposit Interest Rates

Recurring deposits having a tenure between 1 and 3 years are known as medium-term recurring deposits. General citizens earn interest of 5.85% p.a. on such deposits while citizens above the age of 60 years are offered between 6.35% p.a.

Long Term Recurring Deposit Interest Rates

Deposits opened for a period in excess of 3 years fall under the category of long-term recurring deposits. The interest payable on such deposits is 5.80% p.a. for general citizens and 6.30% p.a. for senior citizens.

Canara Bank Recurring Deposit FAQs

  1. What is the penalty for delay in the payment of monthly instalments?

    For delay in the payment of instalment, the bank charges Rs.1.50 for every Rs.100 per month for deposits having a tenure of 5 years. The penalty is Rs.2 for every Rs.100 on deposits having a tenure over 5 years.

  2. Is there a penalty for premature closure of the RD account?

    Yes, there is a penalty of 1% for premature closure of RDs.

  3. What is the minimum deposit when it comes to Canara Dhanvarsha?

    The minimum deposit amount for opening a Canara Dhanvarsha is Rs.1,000.

  4. Is the interest compounded quarterly?

    Yes, the interest is compounded on a quarterly basis.

  5. Will the RD calculator be helpful in knowing the maturity amount?

    Yes, the RD calculator will let you know the maturity amount. All you need to do it enter the monthly instalment, rate of interest and the tenure of the deposit.

  6. How to open a Recurring Deposit account in Canara Bank?

    Interested customers can visit the Bank’s branches to open a RD account.

  7. What are the documents required during application?
    • Duly filled application submitted in the Bank's prescribed form.
    • Pan Card copy or Form 60 or 61.
    • 2 passport size photographs of depositor(s).
    • With accordance to KYC Norms, depositor has to provide Identity Proof and Address Proof.
    • Related documents to proprietorship concern, Partnership Firm, Company, HUF, etc. as applicable.
  8. What is the Minimum & Maximum amount to open Recurring Deposit in Canara Bank?

    The minimum amount that can be deposited in a RD account can be as low as Rs.50/- per month. There is no ceiling on maximum amount that can be deposited.

  9. What are the Minimum or Maximum period for RD in Canara Bank?

    Minimum period for which a depositor can hold a RD account is 6 months and the maximum period for holding an RD account is 120 months.

  10. Does the RD account of Canara Bank provide loan against the deposit?

    Loan against RD deposit is provided up to 90% of the available deposit balance. The deposit is used as a collateral.

  11. Do Senior citizens get any extra benefit on Recurring Deposits?

    Special interest rates are offered to senior citizens, i.e., over 0.50% above the rate applicable to general public.

  12. Can I make premature withdrawal of RD?

    Ans: Yes, premature withdrawals of rd can be made but penalty charges are applicable.

  13. Does the Bank levy penalty charges on premature closure of the Recurring deposits?

    A 1.00% penalty will be levied for premature closure of Recurring Deposits. Prematurely closed Recurring Deposits will earn interest at 1.00% below the contracted interest rate as applicable on the date the deposit was made. and as applicable for the duration that was pre-determined at that time.

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