Canara Recurring Deposit Interest Rates

Canara Bank Recurring Deposit

Canara Bank Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient investment that allows you to deposit a fixed amount on a regular basis with your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) where you enjoy a higher rate of interest than a savings account for the same principal amount.

If it is similar to a fixed deposit in terms of interest rate, then what is the difference between the two? The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.

Advantages to opening an RD account:

  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit smaller amounts on a monthly basis.
  • An RD account can be opened with small minimum amount.
  • Lump sum received at maturity, along with the interest accrued
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Interest Rate earned is generally equal to that of an FD
  • Flexible tenure range to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.
  • Safe and secure investment

Disadvantages:

  • The interest earned might be lower than other, riskier, forms of investment, say investing in mutual funds, etc. But the money is protected from market fluctuations.
  • Penalty charges might apply if you wish to withdraw the amount prematurely.

Canara Recurring Deposit

An RD in Canara Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make fixed monthly installments to a Canara Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance. Individuals, Joint Account, Guardian on behalf of minor, HUF, Proprietorship firm, Companies, associations, trust, institutions are eligible to open an RD account.

Features of Canara RD Account

  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from 6 months to a maximum of 120 months.
  • No cap on maximum amount
  • Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment.
  • Secure from fluctuations.

Types of Recurring Deposits Offered by Canara Bank:

Regular Recurring Deposit:

  • Minimum Opening Balance for Canara RD account: Rs.
  • No cap on maximum amount
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Deposit period: 6 months to 120 months
  • Nomination facility
  • Premature Closure of RD Allowed
  • Interest compounded every quarter
  • Loan facility available: Up to 90% of the available deposit balance
  • Easy liquidity options; closure before maturity allowed subject to terms and conditions

Canara Dhanvarsha - Flexi Recurring Deposit Scheme

  • Minimum amount per month: Rs. 1000 and in multiples of Rs. 100 thereafter
  • Maximum instalment amount: Rs. 1 Lakh
  • Tenure ranges from a minimum of 1 year and in multiples of 3 months; Maximum 10 years
  • Interest compounded quarterly.
  • Loan facility available: Up to 90% of the available deposit balance
  • Nomination facility available
  • No TDS is deducted (as of now)
  • Premature closure allowed with a penalty of 1% on the rate as of the date of opening.

Documents Required for Canara Bank RD Account:

  • Application in the Bank's prescribed form.
  • Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card).
  • Photograph of Depositor/s (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 Recurring Deposit Interest Rates

Canara Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Canara Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Canara Bank RD interest rates including Canara Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Canara, it is advisable to check with the bank directly.

Canara bank recurring deposit interest rates 2015 – 2016

The Bank offers competitive interest rates which can be change from time to time depending on the bank’s policy. It is advisable to check with the bank for the most up to date interest rates.

Canara Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for a normal citizen of India.

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.

Canara Bank RD FAQs

What is the minimum amount required to open an RD with Canara?

The minimum opening balance for a regular recurring deposit with Canara Bank is Rs. 50 and in multiples of Rs. 50 thereof.

What is the minimum and maximum deposit period?

The minimum deposit tenure is 6 months and the maximum period is 120 months.

How do I apply for a regular recurring deposit?

You can visit your nearest branch and submit the Deposit Account form. Alternatively, you can call the customer care number for help with your query.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence
  • Proof of identity
  • PAN Card
  • Copy of PAN Card / Form 60 or 61 (if customer does not have PAN Card).
  • Introduction letter from an existing customer of Canara Bank (if required)
  • Any other KYC documents as required by the bank
  • Any other related documents as applicable to proprietor ship concern, Partnership Firm, Company, HUF etc.