Canara Bank, established in 1906 and nationalized in the year 1969, is one of the largest public sector banks under the Government of India. 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.
Headquartered in Bengaluru, Canara Bank is one of the oldest public sector banks in the country owned by the Government of India. Moreover, being one of the oldest banks, Canara Bank recurring deposit interest rates 2022 are on par with other major banks with an added advantage of minimum deposits starting from as low as Rs. 50.
Given below are the updated Canada Bank RD Rates in a tabulated form:
|Tenure||RD Rates for General Citizens||RD Rates for Senior Citizens|
|180 days – 269 days||4.40%||4.90%|
|270 days – 364 days||4.40%||4.90%|
|1 year 1 day – 1 year 364 days||5.10%||5.60%|
|2 years – 2 years 364 days||5.25%||5.75%|
|3 years – 4 years 364 days||5.25%||5.75%|
|5 years – 7 years 364 days||5.25%||5.75%|
|8 years – 10 years||5.25%||5.75%|
The maturity amount is the lumpsum amount one gets after the required RD tenure is over. You can determine the interest you have earned with the help of this amount. An RD calculator immensely helps you in calculating the required interest. However, below given is the formula to calculate the interest on your deposit:
A = P*(1+R/N)^(Nt)
Where ‘R’ is the rate of interest, ‘P’ is the principal deposited, ‘n’ gives the tenure in months and ‘t’ is the applicable tenure.
In order to apply for an RD account at Canara Bank, one has to visit any of the nearest Canara Bank’s branches with the following documents –
So, keeping all the points in mind, it is evident that going with a Canara Bank Recurring Deposit can benefit you and help you achieve your financial goals. However, it is recommended that you read all the terms and conditions meticulously before investing in any scheme.
|Deposit Amount||A Canara bank RD account can be opened with as low as Rs. 50 for a fixed term without any cap on the maximum amount.|
|Tenure of Deposit||An RD account in Canara bank can be opened for a minimum time period of 6 months to a maximum of 10 years, in multiples of three.|
|Rate of Interest||Depending on the investment amount and the account term, Canara Bank compounds the interest on a quarterly basis. However, individuals above 60 years get an additional 0.50% interest rate above the regular rates for individuals below 60 years of age.|
|Penalty for Delayed Instalment Payment||
|Premature Withdrawal Facility on Canara Bank RD||Canara Bank allows the option of Premature withdrawals but is subjected to a penalty of 1% rate if the account was opened on or after 4th February 2011.|
|Tax Exemptions||Canara bank recurring deposit is taxable under the Income Tax Act 1961. The money invested in RD is included in your yearly income and a TDS (Tax Deducted at Source) of 10% is levied on the interest earned (in case it is more than 40,000 per year). To save TDS on your RD interest profit, you can fill either Form 15G or Form 15H.|
|Terms to Submit the 15G Application||
This is the regular type RD scheme where one can make a minimum deposit of Rs.50 per month for the selected tenure to earn interest as applicable. The minimum investment period for the account is six months and in multiples of three months thereafter. The maximum period is 120 months.
One of the best advantages Canara Bank provides is the Canara Dhanvarsha recurring deposit scheme which allows the customer to deposit more than the monthly preset amount. Under this scheme, the account holder has the option to invest surplus/bonus funds into their Canara Dhanvarsha account. These extra deposits made by the customer will in turn return even more additional interest over the regular interest on the required monthly deposits.
Canara Bank Dhanvarsha Recurring Deposit Scheme is available to residents as well as non-resident Indians. The Canara Bank Dhanvarsha RD account can be opened for a minimum of 1 year to a maximum of 10 years by making a minimum monthly deposit of Rs.10,000 to a maximum of Rs.1 lakh. This scheme does not provide senior citizens with any special interest rates. However, facilities such as nomination, loan facilities, and others are applicable in this scheme.
The Pigmy Deposit Scheme comes after the merger of Syndicate Bank and Canara bank. The New Nitya Nidhi Deposit (NND) Scheme of Canara Bank came into effect on 1 April 2020. This scheme aims to collect the small savings of daily savers and entails daily door collection through the bank agents. The minimum investment required per month is Rs.50. The tenure for the account is 63 months and the interest rate is applicable at 2.50% p.a.
A recurring deposit is one of the best ways to invest and save your money with the lowest or zero risks included. Moreover, what could be a better idea than investing just a small amount of money every month and earning interest on it. It plays a major role in achieving whatever financial goals you have set for yourself. Apart from the conventional benefits that most of the RDs offer, Canara bank recurring deposit will offer you additional benefits such as:
Q1. What is the eligibility to apply for an RD account at Canara Bank?
Indian residents and HUFs can open an RD account with Canara Bank. NRIs can also open a Canara RD account through NRO and NRE accounts.
Q2. Is there a cap on the investment amount for the Canara DhanVarsha scheme?
No. You can make a deposit of up to 10 times the installment amount including the regular installment for the month.
Q3. Is there any penalty for the late payment of the installment?
Under the regular RD scheme, there is a penalty of Rs.1.50 for every Rs.100 installment per month. This is levied for accounts with a tenure of up to 5 years and Rs.2 for every Rs.100 installment per month for accounts that have a tenure of more than 5 years. Please note that there is no penalty levied for delayed installment payments in the Canara DhanVarsha scheme.
Q4. Does Canara Bank provide a nomination facility on recurring deposits?
Yes, the nomination facility is provided by Canara Bank.
Q5. Is it possible to reactivate an RD account?
Yes, a Canara Bank RD account can be renewed. However, renewal is feasible in accordance with Canara Bank’s standards and rules.