Canara Bank is one of the largest Public Sector Banks and is owned by the Government of India. It offers multiple recurring deposit schemes with attractive interest rates. One can check the maturity value according to the tenure chosen by using a Canara Bank RD calculator. However, it depends on various factors that are listed on this page.
Recurring deposits are a good fit for individuals who don’t have a big amount of money to invest in one go. Tenures for Canara bank RD schemes start from 6 years to 10 years and the minimum deposit amount is as low as Rs. 50 per month. However, there is no cap for the maximum deposit.
Read more about Canara Bank RD Rates
All you have to do is follow the simple steps given here to calculate the maturity value of your RD investments.
The interest is compounded every quarter, hence for the first quarter only simple interest is applicable to your deposits.
The formula to calculate compound interest on RD is:
Compound interest enables your money to grow faster because interest is calculated on the accumulated interest over time as well as on your original principal.
The rate of interest for the depositor is decided based on certain factors. Some of the are enlisted below:
This the time period for which you invest the money in a recurring deposit. The rate primarily depends on various factors and tenure is one the most crucial ones. Your RD interest rate varies across all the tenure options.
Banks and other financial institutions usually provide a higher rate of interest to senior citizens. The rates range from 0.50% to 0.75% additional rates over the regular deposit rates provided to general citizens. However, the minimum age criteria for senior citizens may vary as per the bank.
Current Economic Environment
Banks and other NBFCs that provide recurring deposits schemes keep on changing their interest rates with reference to the economic scenario. Reasons like change in repo rate by the RBI, inflation, and so on play an important role in this.
Inflation and interest rates have a close relation. In fact, both are inversely proportional to each other; lower interest rates are most likely to result in more inflation, on the other hand, high-interest rates tend to lower inflation.
Repo rate is an important element of the Indian monetary policy that can regulate the country’s money supply, inflation levels, and liquidity. In low inflationary situations, the interest rate is reduced. A fall in interest rates makes borrowing cheaper.