Canara Bank Recurring Deposit Interest Rates 2025
The Canara Bank Recurring Deposit is one of the most popular investment schemes offered by the bank which allows individuals to build a significant savings corpus through monthly deposits. Moreover, being one of the oldest banks, Canara Bank recurring deposit interest rates 2025 are on par with other major banks with an added advantage of minimum deposits starting from as low as Rs. 50.
Canara Bank offers recurring deposit schemes for the general public, senior citizens, and nonresident Indians. Senior citizens are offered 0.50% additional interest per annum. Interest rates range from 6.00% p.a. to 6.50% p.a. for the general public.
Recurring deposits can be opened for a tenure ranging from 6 months up to 10 years in multiples of 3 months. Deposits can be opened for as little as Rs.50 per month and multiples thereof.
Interest Rates for Recurring Deposits less than Rs.3 crores
Maturity Period | Interest Rate for General Citizens (p.a.) | Interest Rate for Senior Citizens (p.a.) |
180 days to 269 days | 6.00% | 6.50% |
270 days to less than 1 year | 6.10% | 6.60% |
1 year | 6.25% | 6.75% |
Above 1 year to 1 year 3 months | 6.25% | 6.75% |
Above 1 year 3 months to less than 2 years | 6.25% | 6.75% |
2 years and above to less than 3 years | 5.50% | 6.00% |
3 years and above to less than 5 years | 5.00% | 5.50% |
5 years and above to 10 years | 5.00% | 5.50% |
*Note : The above listed interest rates are as of 8 August 2025 and are subject to change at the discretion of the bank.
Also, Check - Fixed Deposit Interest Rates
Interest Rates for NRIs Opening RD Accounts with Canara Bank
The rates of interest offered by Canara Bank for Non-Resident Indians who wish to open a Recurring Deposit Account at Canara Bank for deposits less than Rs.3 crores:
Tenure | Interest Rates (p.a.) |
1 year & above 1 year to three months only | 6.25% |
444 days | 6.50% |
Above 1 year 3 months to less than 2 years | 6.25% |
2 years and above to less than 3 years | 6.25% |
3 years to less than 5 years | 6.25% |
5 years to 10 years | 6.25% |
*Note: The above listed interest rates are as of 8 August 2025 and are subject to change at the discretion of the bank.
Also ,Check - Canara Bank FD Rates
Factors for Opening a Canara Bank RD Account
In order to open an RD account, you’re required to meet the eligibility criteria specified by the bank.
The following factors are essential to consider before opening Canara Bank Recurring Deposit 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 that 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 6 months and maximum of up to 120 months or 10 years, in multiples of three.
- 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 rd charges of 1%.
- Tax Benefits - According to the Income Tax Act of 1961, Canara Bank recurring deposits are taxed. A TDS of 10% is imposed on the interest earned (in the event that it exceeds Rs.40,000 per year) and the funds invested in your recurring deposit are included in your annual income. You can fill out Form 15G or Form 15H to avoid paying TDS on the interest profit from your RD.
Also, Know - Canara Bank RD Calculator
Documents Required for Canara Bank RD Account
- The application form in the bank’s prescribed form for opening a recurring deposit account in Canara Bank.
- A copy of your Permanent Account Number (PAN) card.
- If you do not have a PAN card, then you must submit the Form 60/61.
- Two passport size photographs of the applicant.
- Address proof of the applicant along with the address according to Know Your Customer KYC rules.
- Any documents that the bank may require from the proprietorship firm, company, trust, association or institution.
How to Apply for a Canara Bank RD Account?
In order to apply for an RD account, you are required to visit any of the Canara Bank’s branch with the following documents :
- Bank specified application form.
- PAN card copies or Form 60 or 61 in the absence of PAN.
- Two copies of photographs.
- Proof of identity.
- Proof of address.
- Other documents based on the applicant’s profile.
Types of Canara Bank Recurring Deposit (RD)
Regular Recurring Deposit - This is the regular recurring deposit scheme offered by Canara bank. You can start investing in this account with a minimum monthly deposit of Rs.50. There is no cap on the maximum amount which can be invested in the RD account.
Canara Bank Dhanvarsha RD Scheme - Canara Dhanvarsha is a flexible recurring deposit scheme which allows the account holders to deposit more than the monthly required amount. Under this scheme, the customer can choose to invest surplus/bonus funds into their Canara Dhanvarsha account. The extra deposits will reward the account holder with additional interest over and above the contractual interest on the required monthly deposits.
Benefits of an RD Account
A recurring deposit is a good way to invest and save money with little or no risk. Canara Bank's recurring deposit will provide you with additional benefits besides the traditional benefits that most RDs provide, such as:
- The minimum deposit amount is as low as Rs.50.
- There is no limit on the maximum deposit amount.
- A loan facility of up to 90% of the deposited deposit balance is provided.
- It provides high returns as the interest rates are compounded on a quarterly basis.
- Senior citizens are entitled to an additional interest rate of 0.50%.
- A nomination facility is available.
Know more about Recurring Deposit (RD)
FAQs on Canara Bank Recurring Deposit
- What are the limits on the minimum and maximum deposits?
An RD account can be opened for as low as Rs.50 per month there is no limit on the maximum amount which can be deposited in the account of deposits.
- What is the penalty for delayed instalments?
Penalty of Rs.1.50 for every Rs.100 instalment per month if the RD account is five years old and a penalty of Rs.2 for every Rs.100 instalment per month if the account is older than five years. In case of delay of remittance of more than four instalments, the RD account will be repaid at simple interest on a monthly basis.
- How can I contact Canara Bank?
With pan-India presence, Canara Bank can be contacted through telephone, email, or a branch visit.
- Is there a difference between the interest rates for RD and FD?
While most banks offer the same interest rates on RDs and FDs, there are some banks which offer different rates.
- Is it possible to renew an RD account?
Yes, however, there are certain types of RD account that don’t have a renewal option.
- Is nomination facility available under an RD account?
Yes, you can either add the nomination when while opening the RD account or before the maturity of the account.
- Can I take a loan against an RD account?
Yes, you can avail a maximum of 90% of the total deposit balance as the loan amount.
- Are the interest rates same for a Senior citizen?
Senior citizens are entitled to an additional interest of 0.50%.
- Is it possible to withdraw an RD account before the maturity date?
Yes, however, the liquidation will be subject to premature closure charges.
- Can I open an RD account for a minor?
Yes, you are allowed to open an RD account on behalf of a minor.
- How can one open an RD account with Canara Bank?
An RD account at Canara Bank can be created for as little as Rs. 50 and has a term of six months to ten years. A recurring deposit account with Canara Bank can be started online or in person at any of the bank's locations with a valid form of identification, such as a driver's licence, voter ID, Aadhar card, or PAN card.
- How can I close my Canara bank RD account?
You may visit the branch or close your RD account online via the "Close A/c" option, albeit doing so could result in penalties. Canara Bank RD currently charges a premature closure penalty of 1.00%.
- How can one open an RD account with Canara Bank?
An RD account at Canara Bank can be created for as little as Rs. 50 and has a term of six months to ten years. A recurring deposit account with Canara Bank can be started online or in person at any of the bank's locations with a valid form of identification, such as a driver's licence, voter ID, Aadhar card, or PAN card.
- How can I close my Canara bank RD account?
You may visit the branch or close your RD account online via the "Close A/c" option, albeit doing so could result in penalties. Canara Bank RD currently charges a premature closure penalty of 1.00%.
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