Interested in financial products


Canara Bank offers competent rates on their deposits, they have significant presence in Karnataka, especially the northern Karnataka regions. Their products are customized to cater to the mid-tier segment of customers. The bank manages to provide best-in-class products and services which has enabled it to consistently increase market share.

What is a Recurring Deposit?

Canara Bank Recurring Deposit Rate

Recurring deposit is categorized under term deposit and are amongst the basic products offered by most of the banks in India. Unlike the term deposit where the amount is deposited in bulk, the recurring deposit allows the account holder to invest a fixed amount called the installment on a monthly basis for a pre-determined tenure. The amount to be deposited on a monthly basis and the tenure for which the deposit has to be made every month are pre-determined. Based on these two factors, the interest rates are applicable.The interest rates of fixed deposits are applicable for recurring deposits as well. The interest on recurring deposit is calculated on a quarterly basis. This investment avenue promotes the discipline of investing on a regular basis. The amount that will be paid out to the account holder at the end of maturity will be informed to the individual at the beginning or at the time of opening the account. Any lapse or delay in payment of monthly installment will be penalized by reduced interest credit to the account and reduced maturity value thereof.

Canara Bank Recurring Deposits

Like all other banks, Canara Bank also offers recurring deposit facility. The minimum deposit amount with which one can initiate a recurring deposit account is Rs. 50/- which is extremely affordable even by the rural customers. There is no maximum amount on the monthly installment that can be contributed. The incremental contribution can be in multiples of Rs. 50/-. The minimum tenure allowed is 6 months and the maximum being 120 months. The incremental tenure is 3 months. The features of recurring deposits are competitive and the interest rates are inline with the industry rates.

Features and benefits of availing Canara Bank Recurring Deposits

  • Individuals, guardian on behalf of minors, joint account (Individual along with family members), HUF (Hindu Undivided Family), proprietorship firm, company, an association, trust and institutions are eligible for opening Canara Bank Recurring Deposits
  • Minimum installment requirement is Rs. 50 / per month; there is no ceiling on maximum amount
  • Period of deposit can range between 6 months – 120 months (multiples of 3 months)
  • Interest is applicable as per the rate declared on the official website. Special rate is applicable for senior citizen 0.5% over and above interest rate applicable for general public
  • Tax deducted at source is as per prevalent tax regulations
  • Nomination facility is available; loan facility to the extent of 90% of deposit value is available
  • Penalty of 1% is applied on premature closure, the interest rate will be marked down by 1%

Features and benefits of availing Canara Dhanvarsha – A Flexi Recurring Deposit Scheme

Canara Bank Recurring Deposit Rates
  • Indian citizens, joint Account (Individual along with family members), guardian on behalf of minor, company, partnership firm, association, trust, institution and NRE customers can apply for opening Canara Dhanvarsha – A Flexi Recurring Deposit Scheme
  • Minimum amount of deposit per month is Rs. 1000 and in multiples of Rs. 100 thereafter subject to a maximum limit of Rs. 1 Lakh
  • Amount up to 10x of the regular instalment amount (including regular instalment) can be deposited per month
  • Period of deposit is minimum of 1 year to maximum 10 years (the incremental term should be in multiples of 3)
  • Interest on scheme is as per the rate declared by the bank on the official website
  • Special interest rate is not applicable for senior citizens
  • As of now, there is no tax deducted at source on the interest earned; this is subject to change as per any change effected by IT department
  • Nomination facility is available and loan facility where 90% of deposit value is extended as loan is available
  • Pre-mature withdrawal allowed with 1% penalty on value of deposit, the interest rate is marked down by 1%; no other penalty is applicable

Interest rates applicable on Canara Bank Recurring Deposits

Below is the effective annualized rate of return on Canara Bank’s term deposits and recurring deposits. The interest rates are subject to change on a regular basis and are the latest updates are available on the bank’s official website. The investor is advised to check for the latest interest rates before making an investment.

For deposits less than Rs. 1 Crore

Term Deposits (All Maturities)General PublicSenior Citizen
Rate of Interest (% p.a)Annualised Interest yield **Rate of Interest (% p.a)Annualised Interest yield **
7 days to 14 days *5.755.886.256.40
15 days to 30 days5.755.886.256.40
31 days to 45 days5.755.886.256.40
46 days to 60 days6.256.406.756.92
61 days to 90 days6.256.406.756.92
91 days to 120 days6.256.406.756.92
121 days to 179 days6.256.406.756.92
180 days to 269 days6.356.506.857.03
270 days to less than 1 year6.406.566.907.08
1 year only7.007.197.507.71
Above 1 year to less than 2 years7.007.197.507.71
2 years & above to less than 3 years6.706.877.207.40
3 years & above to less than 5 years6.206.356.706.87
5 years & above to less than 8 years6.206.356.706.87
8 years & above to 10 years6.206.356.706.87
444 Days (Canara Shikhar Deposit)
555 Days (Canara Shikhar Deposit)

Non-Resident Accounts

Period of DepositLess than Rs.1 crore (w.e.f. 01.11.2018)
Rate of Interest(% per annum)Annualised Interest Yield
7 days to 14 days *5.755.88
Above 1 year to less than 2 yrs7.007.19
2 yrs & above to less than 3 yrs6.706.87
3 yrs & above to less than 5 yrs6.206.35
5 yrs & above to less than 8 yrs6.206.35
8 yrs & above to 10 yrs6.206.35

Penalty on pre-closure or withdrawals from Canara Bank Recurring Deposits

A penalty of 1% is levied on premature closure of deposits which have amount less than Rs.1 crore. This penalty is applicable on all deposits that are accepted /renewed on or after 04.02.2011.

There is no penalty applicable on premature closure or premature extension of NRE term deposits of Rs.1 Crore & above that are placed/renewed on or after 13.10.2012. However, there is a penalty of 1% on premature closure/premature extension of NRE term deposits of Rs.1 crore & above that are placed /renewed from 29.12.2011 to 12.10.2012.

Canara Bank Recurring Deposit Calculator

You can make use of any reliable online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—all you need to do is enter the instalment amount you want to invest monthly, the period, the interest rate, method of compounding (monthly, quarterly, half-yearly or annually) and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit.

Using an RD calculator helps you calculate how much you need to save monthly to achieve your financial goal.

Frequently asked questions: Canara Bank Recurring Deposits

1. Who can apply for an RD account with Canara Bank?

Following are the people who can open an RD account with Canara Bank.

  • All Indian residents
  • Members of Hindu Undivided Families (HUF)
  • Private and public limited companies
  • Trusts and societies

2. Can the account holder avail an overdraft facility?

Loans and overdraft facility can be availed against recurring deposits held with Canara Bank. They will be considered by the branch on a case-by-case basis.

3. What are the documents required to apply for an RD account with Canara Bank?

Below are the list of documents required to apply for an RD account with Canara Bank -

  • Duly filled-in application
  • Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card)
  • Photograph of Depositor (2 copies)
  • Proof of Identity and address as per KYC Norms
  • Any other related documents as applicable to proprietor ship concern, Partnership Firm, Company, HUF etc.

Canara Bank Recurring Deposit Rate - Customer Reviews

0 / 5 (1 Reviews)
8 Oct 2020

Usefulness of information,Credit Report Analysis,Website/app interface,Call Experience,Thnx

×Thank you! Your comment will be reviewed and posted shortly.