• Recurring Deposit
  • Canara Bank RD Interest Rates
Canara Bank RD Interest Rates

Canara Bank RD Interest Rates

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Canara Bank RD Interest Rates July 2024

TenureNormal Citizen RD RateSenior Citizen RD Rate
3 Months to 6 Months5.25%5.25%
6 Months to 9 Months5.50%5.50%
9 Months to 1 Year6.50%7.00%
1 Year to 2 Years6.90%7.40%
2 Years to 3 Years6.85%7.35%
3 Years to 5 Years6.80%7.30%
5 Years to 10 Years6.70%7.20%

Note: All interest rates shown above are as on 1st November 2023

Canara Bank RD Scheme Details

Tenure
6 Months - 10 Years
Public Interest Rates
5.25% to 6.90%
Senior Citizen Interest Rates
5.25% to 7.40%
Minimum Deposit Amount
Rs.50
Premature Withdrawal
1.00%
Highest Rates for Public
6.90%
Highest Rates for Senior Citizen
7.40%

Canara Bank Returns Based on Investment Amount

Investment AmountFor 3 years with interest of 6.80%For 5 years with interest of 6.70%
₹ 50,0001,51,6972,54,195
₹ 1 lakh3,03,3945,08,391
₹ 2 lakh6,06,78710,16,781
₹ 5 lakh15,16,96825,41,953
₹ 10 lakh30,33,93650,83,906

Compare Canara Bank vs Punjab National Bank Recurring Deposit

vs
Punjab National Bank
Canara Bank
Canara Bank
Maturity Amount3,03,3943,02,621
Total Investment Amount3,00,0003,00,000
Total Interest Gained3,3942,621

Compare RD Interest Rates of Other Banks

Bank NameRD Interest Rates
Punjab National Bank
Punjab National Bank
4.40% to 6.50%
City Union Bank
City Union Bank
5.75% to 6.50%
BOI Bank
BOI Bank
4.50% to 6.50%
Indian Bank
Indian Bank
3.50% to 6.70%
BOB Bank
BOB Bank
4.50% to 7.05%
Central Bank of India
Central Bank of India
4.50% to 6.75%
Karur Vysya Bank
Karur Vysya Bank
6.00% to 7.00%
Union Bank of India
Union Bank of India
4.30% to 6.70%
Tamilnad Mercantile Bank
Tamilnad Mercantile Bank
5.75% to 7.00%
Karnataka Bank
Karnataka Bank
5.25% to 7.00%
Dhanlaxmi Bank
Dhanlaxmi Bank
6.50% to 6.75%
South Indian Bank
South Indian Bank
4.50% to 6.50%
Federal Bank
Federal Bank
5.00% to 7.30%
Bank of Maharashtra
Bank of Maharashtra
4.50% to 6.00%
Indian Overseas Bank
Indian Overseas Bank
4.50% to 6.80%
UCO Bank
UCO Bank
4.50% to 6.50%
RBL Bank
RBL Bank
4.75% to 7.50%
State Bank of India
State Bank of India
4.50% to 7.00%
IDBI Bank
IDBI Bank
4.50% to 6.80%
Axis Bank
Axis Bank
4.75% to 7.10%
HDFC Bank
HDFC Bank
4.50% to 7.10%
ICICI Bank
ICICI Bank
4.75% to 7.00%
Indusind Bank
Indusind Bank
4.75% to 7.50%
Kotak Mahindra Bank
Kotak Mahindra Bank
4.00% to 7.10%
Yes Bank
Yes Bank
5.00% to 7.75%
Bandhan Bank
Bandhan Bank
4.50% to 7.25%
IDFC First Bank
IDFC First Bank
5.00% to 7.50%
Equitas Small Finance Bank
Equitas Small Finance Bank
7.25% to 8.20%
Capital Small Finance Bank
Capital Small Finance Bank
4.75% to 7.15%
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank
4.75% to 7.50%
Fincare Small Finance Bank
Fincare Small Finance Bank
5.75% to 8.25%
ESAF Small Finance Bank
ESAF Small Finance Bank
5.25% to 8.50%
North East Small Finance Bank
North East Small Finance Bank
4.00% to 7.50%
Suryoday Small Finance Bank
Suryoday Small Finance Bank
5.00% to 8.50%
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank
6.50% to 8.00%
Jana Small Finance Bank
Jana Small Finance Bank
4.00% to 8.50%
DBS Bank
DBS Bank
3.00% to 7.50%
Post Office
Post Office
6.90% to 7.50%

Frequently Asked Questions

What is the current interest rate of RD in Canara Bank?

The current highest Canara Bank RD rates for general citizen range from 5.25% to 6.90% and for senior citizen it ranges from 5.25% to 7.40% today 2024-07-21

How to open rd account in Canara Bank?

Canara Bank RD account can be opened with a minimum deposit of Rs.50 with tenure ranging 6 Months - 10 Years. Canara Bank recurring deposit account can be opened online or by visiting Canara Bank branches with any ID proof like PAN card, Aadhar card, voter ID, or driving licence etc.

How to close rd in Canara Bank?

You can close your RD a/c online through "Close A/c" tab or by visiting the branch, this may cost you a penalty. The current premature closer penalty in Canara Bank RD is 1.00%.

How to calculate maturity and interest in Canara Bank recurring deposit ?

The maturity amount in Canara Bank recurring deposit account can be calculated by using A = P x(1 + R / N) ^ (NT) formula.
Where:
A: Maturity Amount
P: Recurring Deposit Amount
N: Number of times the interest is compounded
R: annual interest rate
T: Tenure
Example:
If you open recurring deposit account at the Canara Bank for 5 years and planed to invest INR 50,000.The current Canara Bank RD interest rate for 5 year is 6.70%.So using the above formula the maturity amount will be - Rs. 35,68,291.

What is Canara Bank RD interest rates for 1 year in 2024 ?

The Canara Bank recurring deposit for 12 months or 1 year is 7.40% for senior citizen and 6.90% for others.

Calculate Canara Bank Returns

36
3.2 %

1,00,000

Total Investment

0

Wealth Gained

0

Maturity Amount

Invest in SIP to earn ₹37,83,253 moreExplore Best SIP Plans

About Canara Bank Recurring Deposit

Canara Bank RDs are investments that allow investors to save small amounts regularly. They have a tenure of 6 months to 10 years, and the interest rates vary with the tenure. This article covers Canara Bank RD investments and its interest rates in detail.

Canara Bank RD rates range between 5.50% to 6.75% p.a. for regular citizens. For senior citizens, the RD rates range between 6.05% to 7.25% p.a.. One can estimate the returns from their RD investment using a recurring deposit calculator. The RD rates of Canara Bank are higher than their saving account rates. The RD interest rates differ based on the age of the investor, tenure of the investment, RBI policies and economic conditions in the country.

Interest on RDs is taxable as per the individual investor’s income tax slab rates. Investors have to show it under the head ‘Income from Other Sources’ while filing their income tax returns. Moreover, the bank deducts a TDS of 10% if the interest income exceeds INR 40,000 for regular citizens. For senior citizens, the TDS threshold limit is INR 50,000. Also, the TDS rate of 10% is applicable if the investor submits the PAN details. Else, the applicable TDS rate of 20%.

Canara Bank Recurring Deposits Features

  • Tenure: The Canara bank recurring deposit tenure ranges between 6 months to 120 months, in multiples of 3 months.
  • Minimum and Maximum Deposit Amount: The minimum amount of investment in Canara bank RD is INR 50, and in its multiples thereafter. Also, there is no limit on maximum RD investment.
  • Tax and TDS: Canara bank RDs do not qualify for tax saving. The interest income that one earns from Canara bank RDs is taxable as per the individual’s respective income tax slab rates. Moreover, Canara bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS is applicable only when PAN details are submitted; else the bank cuts TDS at 20%.
    One can determine whether Canara bank RD interest income is above or below the TDS threshold limit using the Canara Bank RD Calculator. Also, investors can compute their income tax liability using Scripbox’s Income Tax Calculator.
  • Premature withdrawal: Canara bank allows investors to prematurely withdrawal their recurring deposits. However, Canara bank charges a penalty of 1% for prematurely withdrawing the amount. The interest rate in such scenarios is lower than the actual rate.
  • Nomination Facility: Depositors can nominate beneficiaries for their Canara Bank RDs.
  • Convenience: Opening and managing the recurring deposit investments is easy and convenient through Canara bank’s online portal.
  • Loan against RD: Canara bank allows investors to take a loan against recurring deposits. This will helps them to meet liquidity requirements. Furthermore, it saves time for depositors and avoids the hassle of applying for a fresh loan.
    Investors can take loans such as loan against property (home loan), education loans, business loans, etc., against Canara bank RD. Also, one can compute the loan EMI using the loan EMI calculator. Furthermore, the loan EMI calculator also works as a personal loan EMI calculator. Moreover, it works as a home loan calculator and car loan calculator as well. The investor can also use the EMI calculator for different scenarios by changing the interest rate variables.

Canara Bank RD Account Eligibility and Documents Required

  • Eligibility: Following is the eligibility criteria for opening a Canara Bank RD account
    • Resident Individuals, including minors
    • HUFs
    • Sole Proprietary firms
    • Partnership firms
    • Companies
    • Associations and trusts
    • NRI’s
  • Deposit and account: One can open a Canara Bank recurring deposit account with a minimum investment of INR 50 and in multiples thereafter. However, there is no limit on the maximum investment amount for Canara Bank RD.
  • Documents Required:
    • PAN Card,
    • Aadhar Card,
    • Driving license,
    • Government ID card,
    • Senior Citizen Card
    • Utility bills,
    • passport,
    • bank statement with cheque,
    • certificate or ID card issued by the post office
  • Withdrawal: Canara Bank allows investors to prematurely withdraw their RD investment, however, with a penalty. The bank charges a 1% penalty on the interest rate for premature withdrawal of the RD investment.
  • Nomination: Canara Bank RDs have a nomination facility where the account holder can nominate beneficiaries.

Types of Canara Bank Recurring Deposit Schemes

Canara Bank offers the following recurring deposit schemes:

Recurring Deposits

  • Tenure: 6 months – 12 months (in multiples of 3 months)
  • Minimum Deposit Amount: INR 50, and in multiples of it thereafter.
  • Maximum Deposit Amount: No limit
  • Loan facility: Available, up to 90% of the deposit balance
  • Tax Deducted at Source: Applicable
  • Nomination Facility: Available
  • Premature closure: Available, however, with a penalty of 1%.
  • Penalty for late deposits: INR 1.50 for every INR 100 instalment per month for RD with five years tenure. INR 2 for every INR 100 instalment per month for RD with more than five years tenure. Also, the delay in remittance for more than four instalments, the RD account will be repaid at simple interest.

Canara Dhanvarsha- A Flexi Recurring Deposit Scheme

  • Tenure: 1 year – 10 years (in multiples of 3 months)
  • Minimum Deposit Amount: INR 1,000 and further deposits in multiples of INR 100.
  • Maximum Deposit Amount: INR 1,00,000
  • Loan facility: Available, up to 90% of the deposit balance
  • Tax Deducted at Source: No TDS is cut. However, the interest income is taxable as per the investor’s income tax slab rate.
  • Nomination Facility: Available
  • Premature closure: Available, however, with a penalty of 1%.

Conclusion

Canara Bank RDs are considered a good investment for investors who can save small amounts of money regularly. They are low risk investments as they guarantee returns and hence suit investors who prefer guaranteed return from their investments. However, one has to consider the taxes levied on the interest income of RD investments.

Frequently Asked Questions

What are the limits on the minimum and maximum deposits?

The Canara Bank RD account can be opened with as low as INR 50 per month. Also, there is no limit on the maximum amount for investment in a Canara Bank RD.

Can I open a recurring deposit account for a minor?

Yes, one can open an RD account on behalf of a minor.

How to apply for Canara Bank RD?

One can open a Canara Bank RD account through offline and online modes. For online mode, one has to visit their website. And for offline mode, one has to visit the nearest branch of Canara Bank. To be able to invest in Canara Bank RD, one needs to have all valid documents. For identity proof, one needs to have a PAN Card, Aadhar Card, Driving license, Government ID card, Senior Citizen Card. For address proof, one needs to have utility bills, passport, bank statement with cheque, certificate or ID card issued by the post office.

Is it possible to renew an RD account?

Yes, it is possible to renew a Canara Bank RD account. However, the renewal is possible as per Canara Bank norms and rules.

Resources

  1. Canara Rebeco Mutual Funds
  2. Canara Rebeco SIP Calculator
  3. Canara Fixed Deposit
  4. Canara Bank FD Calculator
  5. Canara Bank PPF Calculator