May 11

Canara Bank Recurring Deposit Interest Rates

Team Antworks

The Canara Bank RD account holder can earn an interest rate of 6.00% – 6.50% on the RD account based on the tenure, the age of the account holder, and other eligibility criteria. Canara Bank provides an option to open an RD account for a minimum 6 months up to a maximum of 10 years. An RD account can be opened for a fixed tenure which can be liquidated if required. However, the interest rates on these types of accounts are subject to premature liquidation fee as per the terms and conditions as specified by the bank.

Deposit Tenure	General Customers (%)	Senior Citizen (%)
1 year only	6.5	7
Above 1 year to less than 2 years	6.3	6.8
2 years & above to less than 3 years	6.2	6.7
3 years & above to less than 5 years	6.2	6.7
5 years & above to less than 8 years	6	6.5
8 years & above to 10 years	6	6.5

Benefits of An RD Account

An RD account is considered to be one of the ideal avenues for saving money conveniently. Moreover, the nest-egg built through an RD account with a systematic and regular saving approach can help a customer in achieving his/her financial goals to a large extent.

RD accounts are popular for various features which are beneficial to the account holder. A customer can open an RD account and earn interest on it by paying a small amount every month for a specific duration of time. At maturity, the account holder will earn interest on the RD account based on the deposit value, the tenure of the account, and the terms and conditions specified by the bank. Additionally, Canara Bank RD holders can expect the following benefits and features from their accounts –

Deposit Amount: Canara Bank RD account can be opened for a minimum of Rs.50 per month. If the customer wants to save more, he/she can choose to increase the amount in multiples of Rs.50. Moreover, there is no cap on the maximum deposit amount making it more desirable and convenient to individuals who have a higher savings goal.
Deposit Term: Based on the customer’s requirements, he/she can choose to open an RD account for a minimum of 6 months to a maximum of 10 years.
Rate of Returns: The interest is compounded on a quarterly basis which offers high returns even when the customer wants to opt for the premature withdrawal. The rate of interest is based on the term of the deposit, account holder’s age and other factors such as tax rules, premature withdrawal, etc.
Loan Facility: Considering the fact that most RD account holders move a considerable amount of their income to an RD account, an emergency or an uncertain situation can force the customer to consider liquidation or premature withdrawal. However, in order to ensure a certain kind of financial protection for the customers, Canara Bank offers a maximum of 90% of the available deposit balance as the loan against the RD account. The calculation of the permissible loan amount is based on the value of the deposit, deposit terms, and other eligibility factors as per the terms and conditions of the bank.
Nomination: The RD account holders can choose to either edit the nominee’s details which were provided at the opening of the account or modify the details later during the account term.

Factors to Consider for Opening a Canara Bank RD Account

In order to open an RD account, an individual is required to meet the eligibility criteria specified by the bank. The following factors are essential to consider before opening an RD account –

Eligibility: Canara Bank RD account is available for any individual, joint account, Hindu Undivided Family (HUF), guardian of a minor, a company, an association, proprietorship firm, a trust, or any institution who fulfils the eligibility requirements.
Deposit Amount: An account can be opened for a minimum of Rs.50 per month for a fixed term without any cap on the maximum amount.
Term of Deposit: An RD account can be opened for a minimum period of 3 months up to a maximum of 10 years.
Rate of Interest: Depending on the deposit amount and the account term, the interest will be compounded on a quarterly basis. Senior citizens are entitled to an additional 0.50% interest rate over and above the regular interest rate for individuals below 60 years of age.
Premature Withdrawal: If the account is liquidated before the maturity, the account will be subject to premature withdrawal charges as specified by the bank.