Canara Bank RD Interest Rates for 2024: What to Expect?

Established in 1906 and nationalized in 1969, Canara Bank ranks among India's leading public sector banks, operating under the Indian Government. Renowned for its diverse financial offerings, the Canara Bank Recurring Deposit (RD) scheme is favored for enabling savings through monthly deposits.

Based in Bengaluru, Canara Bank is one of the oldest government-owned banks in India. Its rich history contributes to competitive Canara Bank RD interest rates for 2024, which are on par with major banks, with a minimal deposit requirement of Rs. 50.

Eligibility Criteria for Canara Bank RD

Who Can Open a Canara Bank Recurring Deposit?

Eligible individuals include single or joint account holders, guardians for minors, HUFs, corporations, associations, trusts, or institutions. NRIs can also avail RD accounts through NRE or NRO accounts. Minors are permitted to open RD accounts under guardianship.

Documents Required for Canara Bank RD

Essential Documents Needed to Start a Canara Bank RD

• Complete the bank's application form
• PAN card copy or Form 60/61
• Two passport-size photographs
• Valid identity proof
• Valid address proof
• Additional documents may be required based on your profile

Types of Canara Bank Recurring Deposit Schemes

• Regular Recurring Deposit: Allows minimum monthly deposits starting from Rs. 50 for tenures beginning at six months, extendable in three-month blocks up to 120 months.
• Canara Bank Dhanvarsha Recurring Deposit Scheme – Flexi RD Scheme: Provides RD holders the freedom to exceed their monthly deposit limits and earn extra interest on surplus. The tenure ranges from 1 to 10 years, with monthly deposits from Rs. 10,000 to Rs. 1 lakh, available for both residents and NRIs. No senior citizen-specific interest rates, but includes options for nomination and loans.
• Nitya Nidhi Deposit Scheme: Introduced post the Syndicate Bank merger on April 1, 2020, targeting small daily savers. Requires a monthly minimum of Rs. 50 for a period of 63 months, with an annual interest of 2.50%.

Canara Bank RD Premature Withdrawal Facility

• A 1% penalty is imposed on premature withdrawals for accounts initiated post-February 4, 2011.
• Interest is provided after deducting the 1% penalty from the current rate on the deposit's start date.
• No penalty for early closure under the Flexi RD Scheme.
• The applicable interest rate is the lower of the account opening rate for the held duration or the contracted rate.

Tax Implications on Canara Bank RD

TDS is applicable.

Steps to Open a Recurring Deposit Account in Canara Bank

Opening an RD Account Online:

Net Banking streamlines the process of opening an RD account. Activate it by visiting a Canara Bank branch if it isn't currently available. Log into your account, select 'E-Recurring Deposit', provide the necessary information, verify documents (especially for senior citizens), and ensure your RD contributions auto-debit from your savings account.

Opening an RD Account Offline:

• Visit a Canara Bank branch with your savings account details and request an RD form.
• Fill in the necessary details like deposit amount, tenure, and nominee.
• Choose standing instructions to automate deposits.
• Submit the required documents for verification.
• Make an initial deposit using cash, cheque, or online transfer.
• Your RD account is activated post-verification.

How to Calculate the Maturity Amount on Canara Bank RD?

The maturity amount includes total returns plus interest after the RD tenure. Utilize an RD calculator for convenience or compute manually using: A = P*(1+R/N)^(Nt), where 'R' is the rate, 'P' is the principal, 'N' is the tenure, and 't' signifies the period.