Canara Bank Recurring Deposit (RD) - 2025
The Canara Bank Recurring Deposit is one of the most popular investment schemes offered by the bank which allows individuals to build a significant savings corpus through monthly deposits
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 3.23% p.a. to 7.87% p.a.
Interest Rates 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:
Recurring Deposits Rate of Interest (%) p.a. For Deposits less than Rs.2 crore | ||||||||
| Callable | Non-Callable (above Rs. 15 lakh) | ||||||
Term Deposits (All Maturities) | General Public | Senior Citizen | General Public | Senior Citizen | ||||
Rate of Interest | Annualised Interest yield | Rate of Interest | Annualised Interest yield | Rate of Interest | Annualised Interest yield | Rate of Interest | Annualised Interest yield | |
7 Days to 45 Days | 3.25 | 3.29 | 3.25 | 3.29 | NA | NA | NA | NA |
46 Days to 90 Days | 4.50 | 4.58 | 4.50 | 4.58 | 4.55 | 4.63 | 4.55 | 4.63 |
91 Days to 179 Days | 4.50 | 4.58 | 4.50 | 4.58 | 4.55 | 4.63 | 4.55 | 4.63 |
180 Days to 269 Days | 5.50 | 5.61 | 6.00 | 6.14 | 5.55 | 5.67 | 6.05 | 6.19 |
270 Days to less than 1 Year | 5.50 | 5.61 | 6.00 | 6.14 | 5.55 | 5.67 | 6.05 | 6.19 |
1 Year Only | 6.75 | 6.92 | 7.25 | 7.45 | 6.90 | 7.08 | 7.40 | 7.61 |
Above 1 Year to Less Than 2 Years | 6.80 | 6.98 | 7.30 | 7.50 | 7.05 | 7.24 | 7.55 | 7.77 |
400 DAYS | 7.15 | 7.34 | 7.65 | 7.87 | 7.25 | 7.45 | 7.75 | 7.98 |
666 Days | 7.00 | 7.19 | 7.50 | 7.71 | NA | NA | NA | NA |
2 Years & Above to Less Than 3 Years | 6.80 | 6.98 | 7.30 | 7.50 | 7.05 | 7.24 | 7.55 | 7.77 |
3 Years & Above to Less Than 5 Years | 6.50 | 6.66 | 7.00 | 7.19 | 6.75 | 6.92 | 7.25 | 7.45 |
5 Years & Above to 10 Years. | 6.50 | 6.66 | 7.00 | 7.19 | 6.75 | 6.92 | 7.25 | 7.45 |
Note: The mentioned rates are for deposits less than Rs.2 crore.
Canara Bank offers various types of recurring deposits
Canara Bank offers 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?
A 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 an RD account with Canara bank by:
- Visiting the bank branch along with the necessary documents
- Using the net banking facility
Documents Required for Canara Bank RD
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 Recurring Deposits
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.
Also check - Canara Bank FD Rates
Flexible RD from Canara Bank
Canara Dhanvarsha is a flexible Recurring Deposit that 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 instalments made as well.
RD for NRIs/NREs
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 4.40% p.a for general citizens and 4.90% 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. The interest rates on such deposits range from 5.10% p.a. to 5.20% p.a. for general citizens and 5.60% p.a. to 5.70% p.a. for senior citizens.
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 rates on such deposits range from 5.45% p.a. to 5.50% p.a. for general citizens and 5.95% p.a. to 6.00% p.a. for senior citizens.
FAQs on Canara Bank Recurring Deposit
- 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.
- What is the minimum deposit when it comes to Canara Dhanvarsha?
The minimum deposit amount for opening a Canara Dhanvarsha is Rs.1,000.
- How to open a Recurring Deposit account in Canara Bank?
Interested customers can visit the Bank’s branches to open an RD account.
- Is there a penalty for premature closure of the RD account?
Yes, there is a penalty of 1% for premature closure of RDs.
- Is the interest compounded quarterly?
Yes, the interest is compounded on a quarterly basis.
- 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 is enter the monthly instalment, rate of interest and the tenure of the deposit.
- 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.
- What is the minimum & maximum amount to open Recurring Deposit in Canara Bank?
The minimum amount that can be deposited in an RD account can be as low as Rs.50/- per month. There is no ceiling on maximum amount that can be deposited.
- What is the minimum or maximum period for RD in Canara Bank?
The minimum period for which a depositor can hold an RD account is 6 months and the maximum period for holding an RD account is 120 months.
- 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 collateral.
- 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 the general public.
- Can I make premature withdrawal of RD?
Ans: Yes, premature withdrawals of rd can be made but penalty charges are applicable.
- 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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