Canara Dhanvarsha - A Flexi RD Scheme 2025

  Canara Bank offers a flexible recurring deposit scheme called Canara Dhanvarsha, designed to provide customers with the benefits of a recurring deposit while allowing flexibility in deposit amounts and timings.  

Updated On - 05 Sep 2025
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The Canara Dhanvarsha is a flexi recurring deposit scheme offered by Canara Bank which features the flexible option of depositing any surplus funds by customers as an RD. Customers can choose any core amount in multiples of Rs. 100, starting from Rs. 500 as the minimum amount.

The Canara Dhanvarsha also carries features like nomination facility, loan eligibility, flexible tenures and attractive interest rates depending on the term chosen by the customer.

Eligibility for Canara Dhanvarsha-Flexi Recurring Deposit (RD)

The Canara Dhanvarsha - Flexi Recurring Deposit scheme can be taken by resident Indians, firms, HUFs, companies, associations, institutions, trusts and Non-resident Indians.

This recurring deposit scheme can be opened with a single holder or as a joint account. Guardians can open RD accounts on the behalf of minors.

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Features of Canara Dhanvarsha-Flexi Recurring Deposit (RD)

Installment Amount - The minimum monthly installment amount that has to be chosen by account holders is Rs. 500, which can be incremented in multiples of Rs. 100. The maximum installment amount that can be deposited by customers is up to a maximum of Rs. 1 lakh.

As flexible installments, customers can deposit up to ten times the regular monthly installment amount.

Mode of Deposit - NRE Customers - Monthly and flexible installment deposits can be made as debits from NRE savings accounts or as inward remittances by NRE customers.

Tenure of Deposit - The minimum tenure that can be chosen for a Canara Dhanvarsha flexi recurring deposit is one year and can be incremented in multiples of three months. The maximum tenure that can be taken by customers is up to 10 years.

Interest Rates - Interest rates for the Canara Dhanvarsha flexi recurring deposit scheme vary as per the tenure chosen by the account holder and are compounded on a quarterly basis. For any additional or top-up amount deposited by the recurring deposit account holder, the interest rate is calculated on a daily basis. If the account holder fails to pay four successive monthly installments only the simple interest will be given to the customer.

Canara Bank offers different interest rates for Senior Citizens and other types of accounts holders. The recurring deposit interest rates varies from 4.50% per annum to up to 8.00% per annum for senior citizens. The recurring deposit interest rates varies from 4.00% per annum to up to 8.00% per annum for other types of account holders.

TDS - TDS is not deducted on the Canara Dhanvarsha flexi recurring deposit account.

Nominations - Canara Dhanvarsha flexi recurring deposit holders are also eligible to select nominees for their accounts.

Loans - Customers can also avail loans for up to 90% of the available balance in their Canara Dhanvarsha flexi recurring deposit accounts.

Penalty - Canara Bank does not impose any other penalties other than for premature closures of Canara Dhanvarsha flexi recurring deposit accounts.

Premature Closures - Canara Bank allows recurring deposit holders to close their accounts before the end of the selected tenure with a penal interest cut of 1% according to the ROI on the opening date.

Canara Dhanvarsha Flexi Recurring Deposit Interest Rates  

The interest rates for the Canara Dhanvarsha flexi recurring deposit account are as follows: 

Tenure  

General Public Interest Rates p.a. 

Senior Citizen Interest Rates p.a. 

1 year 

6.9% 

7.4% 

444 days 

7.25% 

7.75% 

More than 1 year to less than 2 years 

6.9% 

7.4% 

2 years to less than 3 years 

6.85% 

7.35% 

3 years to less than 5 years 

6.8% 

7.3% 

5 years to 10 years 

6.7% 

7.2% 

Note: The interest rates mentioned in the table above may change according to the discretion of the bank.   

Documents Required:

The following documents have to be submitted by resident Indians while opening a Canara Dhanvarsha flexi recurring deposit account :

  1. Recurring Deposit Application Form
  2. PAN Card Copy
  3. Form 61 or 60 (if the PAN card is not available)
  4. 2 Photographs of the applicant
  5. KYC Documents - Identity Proof / Address Proof
  6. Other Documents related to Companies, Firms, HUFs, etc.
  7. NRE customers have to submit all the above mentioned documents excluding the PAN Card and Form 61 or 60.

How to Open Canara Dhanvarsha Flexi Recurring Deposit  

To open a Canara Dhanvarsha flexi recurring deposit account, follow the steps mentioned below: 

Step 1: Go to the nearest branch of Canara Bank.  

Step 2: Request an RD account opening form.  

Step 3: Enter all the requested information in the form. 

Step 4: Select the tenure and the RD instalment amount.  

Step 5: Send the completed form and the required documentation. 

Step 6: Make a deposit into your RD account for the first instalment. 

Step 7: Upon completion of the account opening, a passbook or an RD certificate containing all the information regarding your RD account will be issued. 

FAQs on Canara Dhanvarsha - A Flexi RD Scheme

  • What is the minimum deposit amount for Canara Dhanvarsha?

    The minimum amount required to open Canara Dhanvarsha Flexi RD scheme is Rs.500 and the account can be opened by an individual, guardian on behalf of a minor, proprietorship firm, and joint account holders. 

  • What is the difference between a normal RD and normal Flexi RD?

    A normal recurring deposit account enables depositors to deposit a fixed amount at a specified date every month, while Flexi RD allows depositors to deposit any amount any time of the month. The main difference between normal RD and Flexi RD is the flexibility in date and amount of the deposit.

  • Can I deposit installments more than once for Canara Dhanvarsha Flexi RD scheme?

    Yes, you can deposit the installment amount more than once during the month for Canara Dhanvarsha Flexi RD scheme. 

  • Is there any penalty levied on premature withdrawal of Canara Dhanvarsha - A Flexi RD Scheme?

    No, there is no penalty levied on the premature withdrawal of Canara Dhanvarsha Flexi RD scheme. 

  • Is the interest rate of Canara Dhanvarsha Flexi RD scheme the same as the normal RD scheme?

    Yes, the interest rate for both the normal RD scheme and Canara Dhanvarsha Flexi RD scheme are the same.

  • How does Flexi recurring deposit work?

    The Flexi recurring deposit account offers flexibility to the depositors to select any amount of deposit and make the installment payment any time during the month. These RD accounts allow the depositors to choose a minimum of Rs.100 as deposit amount, which can be increased any time as per depositor’s convenience. 

  • Are the additional installments deposited considered as prepayment of future installments?

    No, the additional installment payments made during the month for the Canara Dhanvarsha Flexi RD scheme are not considered as a prepayment for future installments. 

  • I am 61 years old. Can I avail myself of additional interest rates if I open Canara Dhanvarsha Flexi RD scheme?

    Yes, you can avail yourself of additional interest rates on the Canara Dhanvarsha Flexi RD scheme, as the bank offers 0.50% over normal RDs to all its senior citizen customers for opening this RD scheme.

  • Will I be charged with a penalty for delayed installment payments?

    No, for Canara Dhanvarsha Flexi RD scheme you will not be charged with any penalty amount for delayed installment payments. 

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