Recurring Deposits (RDs) are a popular investment option for individuals looking to save regularly and earn attractive returns. Canara Bank, one of India’s leading public sector banks, offers a robust Recurring Deposit scheme with competitive interest rates, making it a favorable choice for many investors. This page provides an in-depth look at Canara Bank RD interest rates, features, benefits, and more.
A recurring deposit is a type of term deposit offered by banks in which individuals can deposit a fixed amount every month for a predetermined period. Upon maturity, the bank pays the principal amount along with the accrued interest.
Canara Bank offers attractive RD interest rates on its recurring deposit schemes. These rates are designed to provide good returns on your investments, ensuring that your savings grow steadily over time.
As of the latest update, the interest rates for Canara Bank Recurring Deposits are as follows:
| Tenure | Regular Interest Rate | Senior Citizen Interest Rate |
| 6 Months to less than 1 year | 5.00% | 5.50% |
| 1 year to less than 2 years | 5.50% | 6.00% |
| 2 years to less than 3 years | 5.75% | 6.25% |
| 1 years to less than 2 year | 6.00% | 6.50% |
| 3 years to 10 years | 6.25% | 6.75% |
Note: These rates are indicative and subject to change. Please check with Canara Bank for the latest rates.
1. Flexible Tenure Options: Canara Bank’s Recurring Deposit (RD) allows you to choose a deposit tenure ranging from 6 months to 120 months (10 years), catering to both short-term and long-term savings goals.
2. Minimum Deposit Amount: You can start an RD with less than Rs 100 per month, making it accessible for all income groups. There is no upper limit, so you can save according to your financial capability.
3. Attractive Interest Rates: Canara Bank offers competitive interest rates on RDs, typically in the range of 5.75% to 6.50% depending on the tenure. Senior citizens enjoy an additional interest rate benefit of 0.50% over the regular rates.
4. Premature Withdrawal Facility: You can withdraw your RD amount before maturity, but it is subject to a nominal penalty. This provides liquidity in case of emergencies, though partial withdrawals are not allowed.
5. Nomination Facility: The account holder can nominate a beneficiary at the time of opening the RD, ensuring that the funds are easily transferred in the event of any unforeseen circumstances.
6. Loan/Overdraft Facility: Canara Bank offers the option to avail of a loan or overdraft against the RD up to 90% of the deposit amount, providing a convenient way to access funds without breaking the deposit.
7. Taxation: While the principal amount deposited is not tax-deductible, the interest earned on the RD is taxable and subject to TDS (Tax Deducted at Source) if the interest exceeds ₹40,000 in a financial year.
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1. Disciplined Saving: Canara Bank RD encourages systematic savings by requiring a fixed monthly deposit, helping you build a corpus over time without straining your finances.
2. Safe Investment Option: As a government-regulated bank, Canara Bank ensures the safety of your investment, making it a risk-free option compared to market-linked products like stocks or mutual funds.
3. Assured Returns: Unlike volatile investment options, Canara Bank RD offers guaranteed returns at a fixed interest rate throughout the tenure, providing certainty in planning for future financial needs.
4. Special Benefits for Senior Citizens: Senior citizens benefit from a higher interest rate, which enhances the overall returns, making it an ideal investment for retirees looking for stable income.
5. Liquidity in Emergencies: The ability to take a loan against your RD or withdraw prematurely provides flexibility, ensuring that your funds are accessible when required without completely breaking the deposit.
First, log in to Canara Bank’s internet banking portal using your credentials. If you don’t have an account, you will need to register for online banking.
Once logged in, go to the ‘Deposits’ section and select the Recurring Deposit option. This will lead you to the RD account opening form.
Enter the amount you wish to deposit monthly, choose your tenure (between 6 to 120 months), and select your savings account for fund debits. You can also add a nominee for the RD account at this stage.
After filling in the details, review your entries carefully, including the deposit amount, tenure, and interest rate. Confirm the information and proceed to the next step.
Once you submit the form, the amount will be debited from your selected savings account automatically every month, and your RD account will be activated immediately. You will receive a confirmation email or SMS with the details of your new RD account.
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To help investors plan their savings better, Canara Bank provides an RD interest rates calculator. This tool allows you to calculate the maturity amount based on the monthly deposit amount, tenure, and applicable interest rates.
Canara Bank Recurring Deposits are an excellent investment option for individuals looking to save regularly and earn attractive returns. With flexible tenures, competitive interest rates, and the convenience of online account opening, Canara Bank RDs cater to the diverse financial needs of investors.
Whether you are saving for a specific goal or looking to build a disciplined saving habit, Canara Bank RD is a reliable choice for growing your savings securely.
The minimum monthly deposit amount for a Canara Bank RD is Rs. 50.
Yes, you can open an RD account online through Internet banking.
The maximum tenure for a Canara Bank RD is 10 years.
Yes, senior citizens are offered higher interest rates on Canara Bank RDs.
Yes, premature withdrawal is allowed with applicable penalties.
Yes, you can avail of a loan of up to 90% of the deposit amount against your Canara Bank RD.
While the interest earned is taxable, the deposit amount qualifies for deductions under Section 80C of the Income Tax Act, 1961.
The interest is compounded quarterly and added to the principal amount.
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