Founded in 1906 and nationalized in 1969, Canara Bank is among India's top public sector banks, operating under the Indian Government. Known for a variety of financial products, the Canara Bank Recurring Deposit (RD) scheme is popular for helping individuals build savings with monthly contributions.

Headquartered in Bengaluru, Canara Bank is one of India’s oldest government-owned banks. Its historical legacy supports competitive Canara Bank RD interest rates for 2024, comparable to major banks, with a low minimum deposit of Rs. 50.

Eligibility Criteria for Canara Bank RD

Eligibility Requirements for Canara Bank Recurring Deposits

Individuals, joint account holders, guardians of minors, HUFs, businesses, companies, associations, trusts, or institutions can open an RD account if they meet the criteria. Moreover, NRIs can access RD accounts through NRE or NRO accounts. Minors can open RD accounts under legal guardianship.

Documents Required for Canara Bank RD

Necessary Documents to Open a Canara Bank RD Account

• Completed application form from the bank
• PAN card copies or Form 60/61
• Two passport-sized photos
• Valid identity proof
• Valid address proof
• Additional documents may be required based on profile

Types of Canara Bank Recurring Deposit Schemes

• Regular Recurring Deposit:

  This conventional RD allows minimum monthly investments starting from Rs. 50 for a tenure starting at six months, extendable in three-month intervals up to 120 months.

• Canara Bank Dhanvarsha Recurring Deposit Scheme – Flexi RD Scheme:

  This scheme lets users exceed their monthly deposit limits and earn extra interest on surplus amounts. The tenure ranges from a minimum of 1 year to a maximum of 10 years, with deposits ranging from Rs. 10,000 to Rs. 1 lakh monthly, available to both residents and NRIs. No special interest rates are offered for seniors, but nomination and loan options are included.

• Nitya Nidhi Deposit Scheme:

  Launched post the merger with Syndicate Bank, this scheme began on April 1, 2020, catering to small daily savers. Minimum investment is Rs. 50 per month over 63 months with a 2.50% annual interest rate.

Canara Bank RD Premature Withdrawal Facility

• A 1% penalty applies for premature withdrawals on accounts opened after February 4, 2011.
• Interest is paid after subtracting a 1% penalty from the current rate on deposit date.
• No penalty for premature closure under the Flexi RD Scheme.
• The applicable interest rate is the lower of either the held duration rate at account opening or the contracted rate.

Tax Exemptions on Canara Bank RD

TDS is applicable.

How to Open a Recurring Deposit Account in Canara Bank?

Opening an RD Account Online:

Using Net Banking simplifies the RD account opening process. If Net Banking isn't active, visit a Canara Bank branch to enable it. Log in and select 'E-Recurring Deposit', fill in necessary details, verify documents for senior citizens if applicable, and your savings account will be auto-debited for RD contributions.

Opening an RD Account Offline:

• Visit a Canara Bank branch with a savings account and request an RD form.
• Fill in particulars like amount, tenure, and nominee.
• Elect for standing instructions to automate payments.
• Submit documents for verification.
• Make the initial deposit via cash, cheque, or online.
• Post verification, your RD account is activated.

How to Calculate the Maturity Amount on Canara Bank RD?

The maturity amount is the total received after the RD term, including interest. Use an RD calculator for ease, or manually calculate with: A = P*(1+R/N)^(Nt), where 'R' is the rate, 'P' the principal, 'n' the tenure, and 't' the period.