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Canara Bank Recurring Deposit

Canara Bank Recurring Deposit account enables individuals to save a certain amount on a monthly basis where they can earn the interest applicable on an FD (Fixed Deposit) account. Canara Bank Recurring Deposit interest rate is  6%-7% for regular citizens and it ranges from 6.5%-7.5% for senior citizens. The rate of return offered by Canara Bank is based on eligibility criteria and the deposit term. It provides an option of opening an Recurring Deposit account for a minimum tenure of 6 months and a maximum tenure of 10 years. Recurring Deposit account in Canara Bank can be opened for a minimum tenure of 6 months and a maximum tenure of 10 years. Recurring Deposit account in Canara Bank can be opened for a fixed tenure if required. The interest rates on such Recurring Deposit Accounts depends on the premature liquidation fee and the terms and conditions laid out by the bank.

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Tenure

Regular Recurring Deposit Interest Rates (P.A)

Senior Citizen Recurring Deposit Interest Rates (P.A)

180 days to 269 days

6.35%

6.85%

270 days to less than 1 year

6.35%

6.85%

1 year only

6.50%

7.00%

Above 1 year to less than 2 years

7.00%

7.50%

2 years & above to less than 3 years

6.20%

6.70%

3 years & above to less than 5 years

6.20%

6.70%

5 years & above to less than 8 years

6.00%

6.50%

8 years & above to 10 years

6.00%

6.50%

How Can I apply for a Canara Bank Recurring Deposit Account?

To apply for an Recurring Deposit account, an individual is required to visit the nearest Canara Bank branch and provide the following documents:

  • Application form specified by the bank
  • A copy of PAN card (In the absence of PAN Card, the individual can provide Form 60)
  • Two copies of photographs
  • Identity proof
  • Address proof
  • Documents that are based on the applicant's profile

Premature Withdrawal of Canara Bank Recurring Deposit

If an individual wishes to prematurely withdraw the Recurring Deposit, then they are charged a penalty of 1% of the total deposits

Canara Bank Dhanvarsha Recurring Deposit Scheme

The Dhanvarsha Recurring Deposit scheme is a flexible Recurring deposit scheme that allows the account owners to deposit more than the amount that is required monthly. In this scheme, the individual can choose to invest a surplus or bonus fund into their Canara Dhanvarsha Account. The additional deposits can reward the account owner with an additional interest rate above the contractual rate of interest on the monthly deposits

The Dhanvarsha scheme is available for Indian citizens as well as NRIs. The minimum monthly deposit in the Canara Recurring Deposit account that can be made is 1000 rupees and the maximum deposit is 1 lakh. The Recurring Deposit account can be opened for a tenure ranging from 1-10 years. No special interest rates are provided for the senior citizens. Nominations, loan facilities are applicable under this scheme

Benefits of Recurring Deposit account

A Canara Bank Recurring Deposit account is considered to be one of the most convenient procedures to save. Recurring Deposit accounts can lend a systematic and regular saving approach and it can also help the customers in achieving their financial goals to quite a large extent. Recurring Deposit account can be opened by paying a small amount of money each month. On maturity, the account holder earns an interest rate that is applicable on the recurring deposit annually, the tenure of the deposit and the terms and conditions applicable to the term deposit.

Canara Bank Recurring Deposit account holders can get the following benefits from their account:

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Deposit amount

An individual can open Canara Bank Recurring Deposit for a minimum deposit of 50 rupees per month. If a customer wishes to save more than they can increase the amount of monthly deposit in the multiples of 50. Also, there's no cap on the maximum deposit amount which makes it more convenient for the individuals to have higher savings.

Deposit Term

A customer can choose the type of deposit term according to their requirements. The tenure can vary from 6 months to 10 years.

Rate of Returns

even if the customer wishes to make a premature withdrawal, the interest rate is compounded quarterly and the interest rate is dependent on the deposit term, account holder's age and the terms and conditions that are laid out by the bank

Loan Facility

Since the Recurring Deposit account holders transfer a big chunk of their incomes to the Recurring Deposit accounts, they are also made eligible for loans based on the Recurring Deposit account. To finance the customers during emergencies and to ensure customer protection, Canara Bank offers 90% of the available deposit balance as a loan against the Recurring Deposit account. Calculation of the permissible loan amount is the value of the deposits, deposit terms and other eligibility criteria that the account holder must fulfill.

Nomination

Recurring Deposit account holders can either choose to edit the nominee details or modify the details during the account term.

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FAQ

How can a Canara Bank Recurring Deposit account be opened?

Customers can visit the Canara Bank and provide the necessary documents and the application form for opening an Recurring Deposit account to open an Recurring Deposit account with Canara Bank

What is the difference between an Recurring Deposit and FD?

The only difference between Recurring Deposit and FD is that in case of a fixed Deposit the amount is deposited on a lump-sum basis and in case of a Recurring Deposit, the amount is deposited on a monthly, quarterly or yearly basis. However, in both the cases, the interest rate is compounded annually. So, most of the banks provide the same interest rates for Recurring Deposit and FD.

For opening an Recurring Deposit account what are the documents required?

The following documents are required for opening and Recurring Deposit account with Canara Bank

  • Copy of PAN Card/Form 60
  • Two passport size photographs
  • Identity proof
  • Specified documents based on the profile of the applicants

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What are the minimum and maximum deposits possible in an Recurring Depopt account?

The minimum limit for an Recurring Deposit deposit id 50 rupees and there is no maximum limit on the amount of deposit

What is the tenure on the Recurring Deposit accounts?

The tenure ranges from 6 months to a maximum period of 10 years.

Is nomination facility available under an Recurring Deposit account?

You can add a nominee to your Recurring Deposit account while opening the account or you can contact the branch before maturity to nominate someone linked with your account.

How can I take a loan against the Recurring Deposit account?

You can take a loan amount up to 90% of the amount of Recurring Deposit account.

Are the interest rates same for a Senior citizen?

An additional interest rate of 0.5% is applicable to senior citizens.

How can I open an Recurring Deposit account for a minor?

A guardian can open an Recurring Deposit account for a minor.

Will I be charged for premature withdrawal of an Recurring Deposit deposit?

Canara Bank charges 1% of the Recurring Deposit as a penalty for premature withdrawal.

How can someone contact the Canara Bank?

Canara Bank can be contacted by visiting the branch, through telephone or email.

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