Monthly investment

₹

Rate of interest (p.a)

%

Time period

Years

Invested amount | ₹ |

Est. returns | ₹ |

Total value | ₹ |

Total investment

Total interest

RD ALTERNATIVE

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.

Tenure |
Rates for General Citizens |
Senior Citizens Rates |

180 days – 269 days | 4.45% | 4.95% |

270 days – 364 days | 4.45% | 4.95% |

1 year 1 day – 1 year 364 days | 5.20% | 5.70% |

2 years – 2 years 364 days | 5.40% | 5.90% |

3 years – 4 years 364 days | 5.50% | 6.00% |

5 years – 7 years 364 days | 5.50% | 6.00% |

8 years – 10 years | 5.50% | 6.00% |

1 year | 5.25% | 5.75% |

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.

- Enter the monthly investment amount you wish to make in the first box through the up/down pointers. You can also do it manually or by simply adjusting the slider
- Next, enter the number of years. Again, you can either Use the pointers or the slider to adjust
- Finally, provide the rate of interest offered by the bank on your tenure. The results will be displayed instantly. You can check for different rates and tenures as well.

The interest is compounded every quarter, hence for the first quarter only simple interest is applicable to your deposits.

- April to June – Quarter 1
- July to September – Quarter 2
- October to December – Quarter 3
- January to March – Quarter 4

The formula to calculate compound interest on RD is:

**M=R[(1+i) (n-1)]/1-(1+i)(-1/3))**

- M is the Maturity value
- R is the Monthly Installment
- i is the rate of interest divided by 4
- n is the tenure (in quarters)

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:

**Tenure**

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.

**Applicant’s Age**

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**

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**

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.

- No need to use complicated formulas and hence no room for mistakes in the calculation
- Use as many times you want to calculate the maturity value of your RD which will give you clarity which one to choose from multiple options
- Instant decisions can be taken as it curates the results within seconds

**Ques**. Does the recurring deposit calculator of Canara bank reflect accurate results?

**Ans**. Yes, but sure to enter all the correct values as it has been programmed in such a way that it reflects the accurate results based on the inputs by you.

**Ques**. In the case of RDs, when is the simple interest calculated?

**Ans**. If the RD account is opened in the middle of an ongoing financial quarter, for example in the month of May, the deposited amount will earn simple interest until the June end. Following that, the interest will be compounded as the new quarter starts.

**Ques**. What is the range of tenure offered by Canara Bank Recurring Deposits?

**Ans**. Canara Bank RD ranges from a minimum of 6 months to a maximum of 120 months.

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