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Canara Bank RD Interest Rates 2024

Last Updated : 19 Feb, 2024
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Canara Bank is an emerging Indian banking and financial services company and it is headquartered in Bengaluru, Karnataka. Canara Bank has offices in London, New York, and Dubai as well. Canara Bank was nationalized in the year 1969. Canara Bank offers a wide range of bundles of banking products and services to its customers these banking products also include Recurring Deposit offerings as well. Canara Bank provides different RD options to their customers, the basic aim is to provide a safe option that can be utilized to save money for a fixed tenure and give interest earnings to the customers. There is a wide range of benefits provided by opening a RD account with Canara Bank as they provide an easy loan facility, auto-renewal of RD, and many other things.

OwnershipPrivate Sector Bank
CEOK. Satyanarayana Raju
Headquartered InBengaluru
Founded In1 July 1906
Customer Support Number1800 1030

Canara Bank RD Interest Rates 2024


Rate of Interest for General Citizens 
(Below 60 Years of Age)

Rate of Interest for Senior Citizens 
( Above 60 Years of Age)

3 Months to 6 Months



6 Months to 9 Months



9 Months to 1 Year



1 Year to 2 Years



2 Years to 3 Years



3 Years to 5 Years



5 Years to 10 Years



Features of Canara Bank Recurring Deposit

1. Interest Rates: Canara Bank has attractive interest rates on Recurring Deposits. The charges may depend on the amount deposited, the period of the investment, and other conditions.

2. Flexible Tenure: The tenure period for Recurring Deposits in Canara Bank is quite flexible. The duration depends on the customer’s financial goals and can be a few months to several years.

3. Minimum and Maximum Deposit Amount: Canara Bank might have set certain lower and upper limits for the RD Accounts. The minimal deposit amount is usually affordable and as such readily available to a variety of clients.

4. Auto-Renewal Option: Upon maturity, Canara Bank may offer an auto-renewal feature, enabling customers to invest the matured amount in a fresh RD without any hassle.

5. Interest Payout Frequency: Interest payout in Canara Bank’s RD can be either monthly, quarterly, or at maturity, depending on the bank terms.

6. Senior Citizen Benefits: Canara Bank may offer handsome interest rates or special benefits in terms of Recurring Deposits to senior citizens.

How to Open a RD Account in Canara Bank?

If you want to open a Recurring Deposit (RD) account with HDFC Bank, here are some general guidelines that you can follow,

1. Visit: Visit the Nearest Canara Bank Branch.

2. Inquire about an RD Account: Go to the Canara Bank customer service desk to find out how to open a RD account.

3. Request Information: The customer service manager will help you with the available RD options, interest rates, available tenure, and any other important information.

4. Provide KYC Documents: The customer is advised to keep KYC documents ready for submission. Usually, this involves identity documents, proof of address, and passport-sized photos.

5. Obtain and Fill the Application Form: Get the RD application form from the bank’s representative. Fill up the necessary information correctly, including personal details, nominee details, deposit amount, tenure, etc.

6. Submit the Application Form and KYC Documents: Hand over the filled application form along with all the supporting documents.

7. Deposit the Initial Amount: The Bank will request to deposit the initial amount. Depending on the policies, the initial deposit amount may vary.

8. Receive RD Account Details: Once the application is processed and the initial deposit is advanced, the customer will receive the RD account passbook or certificate. This paper will contain all the details about your RD account in terms of the deposit amount, tenure, interest rate, and maturity date.

9. Set Standing Instructions: The customer will have the option to create standing instructions to the bank so that the monthly installment is transferred from your Canara bank savings account to the Canara bank’s RD account automatically.

10. Monitor Your RD Account: Keep a tab on your RD account by receiving periodic statements from your bank. This will help the customer to stay updated on how his/her investment is performing.

How to Calculate RD Interest Rates in Canara Bank?

[Tex]Interest~Earned = P \times \frac{(n \times (n+1))}{2} \times r \times \frac{1}{12}[/Tex]

I = Interest Earned

P = Monthly Installment Amount

n = Number of Installments (tenure in months)

r = Rate of Interest per annum

Eligibility Criteria to Start a RD Account with Canara Bank

Consumers should first determine whether they are eligible to invest in Canara Bank. The following are the prerequisites for investing in a Canara Bank RD,

  1. Individuals
  2. Hindu Undivided Family (HUF)
  3. Sole Proprietorships and Joint Ventures
  4. Private Limited Companies or Public Limited Companies
  5. One-Person Company (OPC)
  6. Trust, society, and association
  7. Partnership Firms, including Limited Liability Partnerships (LLP)
  8. Any government establishment

Documents Required for Starting an RD Account

The following documents are required to open a RD at Canara Bank,

1. Proof of Identity

  • Pan card
  • Voter ID
  • Aadhaar card
  • Ration card, including a photograph
  • Driving license
  • Senior citizen ID
  • Passport

2. Proof of Address

  • Electricity bill
  • Telephone bill
  • Bank statement with cheque
  • Passport

Customers also need to provide their two passport-sized photographs at the time of opening the deposit account. It is mandatory for customers to furnish identity proof and address proof. Minors and senior citizens are also required to follow the same.

Types of Canara Bank RD Accounts

Here are some common types of Canara RD accounts:

1. Regular RD Accounts


6 months – 12 months (in multiples of 3 months)

Minimum Deposit

₹50, and in multiples of ₹50 thereafter.

Maximum Deposit

No Limit

Loan Facility

Available, up to 90% of the deposit balance

TDS Applicability


Nomination Facility


Premature Closure

Available but with penal provision


₹1.50 for every ₹100 instalment per month for RD with five years tenure ₹2 for every ₹100 instalment per month for RD with more than five years tenure. Also, in case the delay in remittance is for more than four installments, the RD account will be repaid at simple interest.

2. Canara Dhanvarsha- A Flexi Recurring Deposit Scheme


1 year – 10 years (in multiples of 3 months)

Minimum Deposit

₹1,000 and further deposits in multiples of ₹100.

Maximum Deposit


Loan Facility

Available, up to 90% of the deposit balance

TDS Applicability

No TDS is deducted, however, income tax is subjected to an individual’s tax slab.

Nomination Facility


Premature Closure


Canara Bank RD Premature Withdrawal Rules

Canara Bank allows its customer to prematurely withdraw their recurring deposits. However, these premature withdrawals are subjected to a penalty of 1% for prematurely withdrawing the amount from Canara Bank’s RD account. The interest rate in such scenarios is lower than the actual rate of a mature RD account.

Frequently Asked Questions (FAQs)

1. What is a Recurring Deposit (RD)?


A Recurring Deposit is a fixed-term deposit in which one can regularly deposit a fixed amount every month, and the total amount, including interest, is paid back at maturity.

2. Does Canara Bank allow a loan facility on RD?


Yes, loan facility is available on RD but up to 90% of the deposit balance.

3. What is the difference between an RD and an FD?


In an RD, money is deposited monthly, whereas in an FD, a single lump sum is deposited at a fixed tenure. RD is suitable for those who wish to invest small amounts on a regular basis.

4. Is the interest on RD taxable?


Yes, the earned interest on RD is taxable according to the income tax slab of the account holder. TDS (Tax Deducted at Source) may be imposed.

5. What if my RD matures without renewal?


In case you do not renew the RD after maturity, the bank can credit the maturity amount to your linked savings account or other options based on their policies.

Note: This is a publicly contributed content. We do not hold responsibility for any errors, omissions, or use of this information. Please refer to for more details.

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