Canara Bank RD Interest Rates

In July 1906, Shri Ammembal Subba Rao Pai founded Canara Bank. The Bank has grown to be one of the best banks during its 100-year history. Canara Bank has a reputation for being highly attentive to the demands of its clients. Particularly after being nationalized in 1969, Canara Bank saw unprecedented expansion, becoming a national actor in terms of geographic scope and clientele demographics. In the 1980s, the Bank underwent a phase of business diversification. In June 2006, the Bank celebrated a century of operation in the Indian financial industry.

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Canara Bank RD Interest Rates 2022

The RD rates for regular citizens aged between 12 months and ten years range from 5.41 to 5.82 percent. The senior citizens get an additional 50 basis points.

Tenure Interest Rates (p.a.) for Public Interest Rates (p.a.) for Senior Citizens
7 days to 45 days 2.93% 2.93%
46 days to 90 days 4.06% 4.06%
91 days to 179 days 4.11% 4.11%
180 days to 269 days 4.58% 5.09%
270 days to less than 1 year 4.63% 5.15%
333 days Scheme 5.20% 5.72%
1 year only 5.41% 5.93%
Above 1 year to less than 2 years 5.51% 6.03%
2 years to less than 3 years 5.56% 6.08%
3 years to less than 5 years 5.82% 6.35%
5 years to 10 years 5.82% 6.40%

Disclaimer: RD Interest rates are subject to change with time. PolicyBazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio.

Features of Canara Bank RD Accounts

  • The monthly deposit has no maximum limit and a minimum deposit limit of Rs.50.

  • The minimum and maximum terms are six and 120 months, respectively.

  • Competitive interest rates are awarded based on the deposit size and duration.

  • There is a TDS and nomination facility.

  • Available loan facility is up to 90% of the deposit amount.

  • The option of premature withdrawals is available.

Calculation of Maturity Amount of Canara Bank RD

You can use the Canara Bank RD Calculator, an online tool, to calculate the interest you might receive by making regular deposits. The total of all investments plus any interest received over the investment term becomes the RD maturity amount. Additionally, the calculation of compound RD interest happens every three months. As a result, the calculator automatically calculates the maturity amount and wealth generated by the monthly RD investments.

The RD Calculator calculates the values listed below using the inputs of a monthly investment, RD rates, and the term of the RD provided:

Investment total: The total of all monthly payments made to the RD.

Gained wealth: Interest from RD investments.

Total Corpus Created: The maturity value of your Canara Bank RD investment is what you can anticipate.

Types of Canara Bank RDs

  • Regular Recurring Deposit: The traditional RD scheme requires a minimum monthly deposit of Rs. Fifty to be made over the specified period to earn the appropriate interest. The minimum term for the account is six months, and all subsequent terms are in multiples of three months. The most prolonged time frame is 120 months.

  • Flexi RD Canara Dhanvarsha Scheme: You must make a minimum monthly deposit of Rs.1,000 for this flexible RD scheme. The customer must make any additional deposits in multiples of Rs.100. Maximum monthly deposit allowed is ₹1 lakh. The minimum deposit term is one year, and all subsequent terms are in multiples of three months. In this instance, the calculation of interest takes place every three months.

  • Scheme for Nitya Nidhi Deposits: With effect from April 1, 2020, the Bank merged the Syndicate Bank's Pigmy Deposit Scheme and the Canara Bank's New Nitya Nidhi Deposit Scheme. The monthly minimum contribution is Rs.50. The account will be open for 63 months. The program comprises daily door collection by bank agents and aims to gather small amounts of daily savers. Starting on October 1, 2020, a 2.50 percent annual interest rate will be in force.

How to Open an RD Account with Canara Bank?

Canara Bank provides both online and offline solutions for opening recurring deposit accounts.

  • Through Online Mode: Sign in to your Canara Bank net banking account and follow the instructions to create an e-RD to open an RD account online. If you don't already have one, you must first create a Canara Bank savings account.

  • Through Offline Mode: Go to the closest Canara bank, physically fill out the application form, and submit it with the necessary documentation to start an RD account offline.

Documents Required to Open An RD Account with Canara Bank

The following paperwork is needed to make an RD:

  • A recent set of passport-size photos

  • A passport, voter ID card, PAN card, driver's license, or photo ration card are all acceptable forms of identification. 

  • Banking Records

  • Payslips, if necessary.

  • Additional documents, if necessary.

Benefits of Opening Canara Bank RD Account

  • Given that it gives a guaranteed rate of return, RD is one of the safest investment options.

  • Advantageous for people who want to begin saving with a small sum.

  • Suitable for those who are risk-averse.

  • Aids in accomplishing financial objectives.

  • Openable with basic documentation.

  • No need to make a lump sum deposit.

  • An increased interest rate for seniors.

  • Teaches the value of regularly conserving money for the future.

  • Early withdrawal is permitted.

  • The deposit sum may also be used as collateral when applying for a loan.

  • Typically, there is no cap on investment.

  • There is a nomination facility.

Eligibility Criteria for Opening Canara Bank RD Account

The following persons can open an RD:

  • Resident Indian

  • Indian non-resident (NRI)

  • Undivided Hindu Family (HUF)

  • Under the supervision and control of their parents, minors may create RD accounts.

  • Companies, trusts, societies, clubs, sole proprietorships, etc.

Premature Withdrawal of Canara Bank RD Account

If necessary, one is permitted to close the RD before maturity. The Bank calculates interest on a premature withdrawal of the deposit at the rate applicable for the period the deposit remained with the Bank, less any applicable premature withdrawal penalties.

Customers should note that only online closures are possible for existing RD accounts.


  • What happens if we fail to make RD's monthly payment?

    If you fail to deposit money for consecutive months, the Bank will cancel or deactivate your RD account until you make the outstanding payment. Depending on the Bank, this time frame ranges from 3 to 5 months.
  • Is investing in RD an intelligent move?

    The total money invested in an RD is safe and secure, unlike mutual funds and stocks vulnerable to market hazards. The Bank will apply your RD's interest rate on the account opening date, which will shield the investment from changes in interest rates. After the term, the Bank will refund it along with interest.
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