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Canara Bank RD Interest Rates-2024

recurring-deposit-image
Apr 30, 2024
8 Mins

Established in 1906 and later nationalized in 1969, Canara Bank stands as one of India's largest public sector banks, operating under the auspices of the Government of India.

Among its array of investment options, the Canara Bank Recurring Deposit scheme holds a prominent position, allowing individuals to steadily accumulate savings through monthly deposits.

Based in Bengaluru, Canara Bank holds the distinction of being one of the nation's oldest public sector banks, enjoying government ownership.

Furthermore, owing to its rich history, the Canara Bank recurring deposit interest rates for 2024 remain competitive, comparable to those offered by other major banks, with the added advantage of a minimum deposit requirement as low as Rs. 50.

Eligibility Criteria for Canara Bank RD

Canara Bank Recurring Deposits Eligibility Requirements

An individual, joint account holder, guardian of a minor, Hindu Undivided Family (HUF), proprietorship firm, company, association, trust, or institution are eligible to open a Canara Bank RD account, provided they meet the eligibility criteria.

Non-resident Indians (NRIs) can also open an RD account by utilizing NRE or NRO accounts.

Minors can establish an RD account under the guardianship of parents or legal guardians.

Documents Required for Canara Bank RD

Documents Needed to Establish a Canara Bank RD Account

  • Official application form provided by the bank

  • Copies of PAN card or Form 60/61 (if PAN is unavailable)

  • Two passport-sized photographs of the applicant

  • Any valid identity proof

  • Any valid address proof

  • Additional documents (based on the applicant's profile)

Types of Canara Bank Recurring Deposit Schemes

  • Regular Recurring Deposit:

This standard RD scheme allows investors to contribute a minimum of Rs. 50 per month for their chosen tenure to earn interest. The minimum investment duration is six months, with subsequent multiples of three months. The maximum period allowed is 120 months.

  • Canara Bank Dhanvarsha Recurring Deposit Scheme – Flexi RD Scheme:

Canara Bank offers the advantageous Canara Dhanvarsha RD scheme, permitting account holders to deposit amounts exceeding the monthly preset limit. This scheme enables customers to invest surplus or bonus funds into their Canara Dhanvarsha account, earning additional interest on these extra deposits beyond the regular interest on the required monthly deposits.

The Canara Bank Dhanvarsha RD scheme is accessible to both residents and non-resident Indians. Accounts can be opened for a duration ranging from a minimum of 1 year to a maximum of 10 years, with a minimum monthly deposit of Rs. 10,000 up to a maximum of Rs. 1 lakh. While this scheme does not offer special interest rates for senior citizens, it does provide features such as nomination facilities and loan options.

  • Nitya Nidhi Deposit Scheme:

The Nitya Nidhi Deposit Scheme, introduced following the merger of Syndicate Bank and Canara Bank, commenced on April 1, 2020. This scheme is designed to attract small daily savers, facilitating daily door-to-door collections by bank agents. With a minimum monthly investment requirement of Rs. 50, the account has a tenure of 63 months, offering an interest rate of 2.50% per annum.

Canara Bank RD Premature Withdrawal Facility

  • A 1% premature withdrawal penalty applies to RD accounts opened on or after February 4, 2011.

  • Interest on RD will be disbursed after deducting the penal rate (1%) from the prevailing interest rate on the deposit date.

  • No penalty for prematurely closing deposits under the Flexi Recurring Deposit Scheme.

  • The interest rate applied will be the rate applicable for the duration the RD was held with the bank at account opening or the contracted rate, whichever is lower.

Tax Exemptions on Canara Bank RD

TDS is applicable

How to Open a Recurring Deposit Account in Canara Bank?

Opening Recurring Deposit Account Offline:

Opening an RD account online through Net Banking is a straightforward process. Here's how you can take advantage of the benefits offered by Canara Bank RD rates:

  1. If your Net Banking account isn't active yet, visit the Canara Bank branch and complete the Net Banking activation form.

  2. Log in to your Net Banking account using your username and password.

  3. Navigate through the menu and select the 'E-Recurring Deposit' option.

  4. Complete the RD form by providing essential details such as tenure and amount. If you're a senior citizen, ensure to check the box confirming your status and provide the necessary supporting documents.

  5. Once your bank account is successfully opened, the predetermined funds will be automatically debited from your savings account and credited to your RD account.

Opening Recurring Deposit Account Offline:

Follow these steps to initiate the opening of your Canara Bank RD account and commence earning returns from Canara Bank RD rates:

  1. Visit your Canara Bank branch where you hold a savings account and request an RD form.

  2. Complete the form, specifying details like the RD amount and tenure, ensuring to include the nominee's name.

  3. Opt for standing instructions if you prefer automatic deduction of monthly installments from your savings account.

  4. Provide necessary documents for identity and address verification.

  5. Make the initial deposit. Payment can be made in cash, by cheque, or online.

  6. Upon verification of all your information, your RD account will be activated.

How to Calculate the Maturity Amount on Canara Bank RD?

The maturity amount represents the total sum received upon the completion of the RD tenure, indicating the accumulated interest earned.

Utilizing an RD calculator significantly simplifies interest calculation. However, the following formula provides a method to compute interest manually:

A = P*(1+R/N)^(Nt)

Here, 'R' denotes the interest rate, 'P' signifies the initial deposit, 'n' represents the tenure in months, and 't' indicates the applicable duration.

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Want to Achieve any of the below Goals upto 80% faster?Trusted by 3 Crore+ Indians
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
credit-cards

Canara Bank RD Interest Rates-2024

recurring-deposit-image
Apr 30, 2024
8 Mins

Established in 1906 and later nationalized in 1969, Canara Bank stands as one of India's largest public sector banks, operating under the auspices of the Government of India.

Among its array of investment options, the Canara Bank Recurring Deposit scheme holds a prominent position, allowing individuals to steadily accumulate savings through monthly deposits.

Based in Bengaluru, Canara Bank holds the distinction of being one of the nation's oldest public sector banks, enjoying government ownership.

Furthermore, owing to its rich history, the Canara Bank recurring deposit interest rates for 2024 remain competitive, comparable to those offered by other major banks, with the added advantage of a minimum deposit requirement as low as Rs. 50.

Eligibility Criteria for Canara Bank RD

Canara Bank Recurring Deposits Eligibility Requirements

An individual, joint account holder, guardian of a minor, Hindu Undivided Family (HUF), proprietorship firm, company, association, trust, or institution are eligible to open a Canara Bank RD account, provided they meet the eligibility criteria.

Non-resident Indians (NRIs) can also open an RD account by utilizing NRE or NRO accounts.

Minors can establish an RD account under the guardianship of parents or legal guardians.

Documents Required for Canara Bank RD

Documents Needed to Establish a Canara Bank RD Account

  • Official application form provided by the bank

  • Copies of PAN card or Form 60/61 (if PAN is unavailable)

  • Two passport-sized photographs of the applicant

  • Any valid identity proof

  • Any valid address proof

  • Additional documents (based on the applicant's profile)

Types of Canara Bank Recurring Deposit Schemes

  • Regular Recurring Deposit:

This standard RD scheme allows investors to contribute a minimum of Rs. 50 per month for their chosen tenure to earn interest. The minimum investment duration is six months, with subsequent multiples of three months. The maximum period allowed is 120 months.

  • Canara Bank Dhanvarsha Recurring Deposit Scheme – Flexi RD Scheme:

Canara Bank offers the advantageous Canara Dhanvarsha RD scheme, permitting account holders to deposit amounts exceeding the monthly preset limit. This scheme enables customers to invest surplus or bonus funds into their Canara Dhanvarsha account, earning additional interest on these extra deposits beyond the regular interest on the required monthly deposits.

The Canara Bank Dhanvarsha RD scheme is accessible to both residents and non-resident Indians. Accounts can be opened for a duration ranging from a minimum of 1 year to a maximum of 10 years, with a minimum monthly deposit of Rs. 10,000 up to a maximum of Rs. 1 lakh. While this scheme does not offer special interest rates for senior citizens, it does provide features such as nomination facilities and loan options.

  • Nitya Nidhi Deposit Scheme:

The Nitya Nidhi Deposit Scheme, introduced following the merger of Syndicate Bank and Canara Bank, commenced on April 1, 2020. This scheme is designed to attract small daily savers, facilitating daily door-to-door collections by bank agents. With a minimum monthly investment requirement of Rs. 50, the account has a tenure of 63 months, offering an interest rate of 2.50% per annum.

Canara Bank RD Premature Withdrawal Facility

  • A 1% premature withdrawal penalty applies to RD accounts opened on or after February 4, 2011.

  • Interest on RD will be disbursed after deducting the penal rate (1%) from the prevailing interest rate on the deposit date.

  • No penalty for prematurely closing deposits under the Flexi Recurring Deposit Scheme.

  • The interest rate applied will be the rate applicable for the duration the RD was held with the bank at account opening or the contracted rate, whichever is lower.

Tax Exemptions on Canara Bank RD

TDS is applicable

How to Open a Recurring Deposit Account in Canara Bank?

Opening Recurring Deposit Account Offline:

Opening an RD account online through Net Banking is a straightforward process. Here's how you can take advantage of the benefits offered by Canara Bank RD rates:

  1. If your Net Banking account isn't active yet, visit the Canara Bank branch and complete the Net Banking activation form.

  2. Log in to your Net Banking account using your username and password.

  3. Navigate through the menu and select the 'E-Recurring Deposit' option.

  4. Complete the RD form by providing essential details such as tenure and amount. If you're a senior citizen, ensure to check the box confirming your status and provide the necessary supporting documents.

  5. Once your bank account is successfully opened, the predetermined funds will be automatically debited from your savings account and credited to your RD account.

Opening Recurring Deposit Account Offline:

Follow these steps to initiate the opening of your Canara Bank RD account and commence earning returns from Canara Bank RD rates:

  1. Visit your Canara Bank branch where you hold a savings account and request an RD form.

  2. Complete the form, specifying details like the RD amount and tenure, ensuring to include the nominee's name.

  3. Opt for standing instructions if you prefer automatic deduction of monthly installments from your savings account.

  4. Provide necessary documents for identity and address verification.

  5. Make the initial deposit. Payment can be made in cash, by cheque, or online.

  6. Upon verification of all your information, your RD account will be activated.

How to Calculate the Maturity Amount on Canara Bank RD?

The maturity amount represents the total sum received upon the completion of the RD tenure, indicating the accumulated interest earned.

Utilizing an RD calculator significantly simplifies interest calculation. However, the following formula provides a method to compute interest manually:

A = P*(1+R/N)^(Nt)

Here, 'R' denotes the interest rate, 'P' signifies the initial deposit, 'n' represents the tenure in months, and 't' indicates the applicable duration.

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Author
Team Pluto
Have a question?
Digital GoldInvest in 24K Gold with Zero making ChargesLearn More
Digital SilverInvest in silver with Zero making ChargesLearn More
Pluto FixedEarn from 11% to 14% Returns annually in a fixed lock-in periodLearn More