Canara Bank RD Interest Rates

What is Canara Bank Recurring Deposit?

Canara Bank's recurring deposit (RD) is a savings plan that lets you deposit a set amount each month for a specific term and earn interest on the amount. It's a practical way to build a savings habit, particularly if you don't have a huge sum to invest all at once. With a Canara Bank recurring deposit, you can choose a term from 6 months to 10 years. The interest is compounded quarterly, so your savings grow steadily over time. You can also use the RD calculator to estimate accurate returns.

Canara Bank RD Interest Rates

The following table provides updated RD rates from the Canara Bank across various tenures, for deposits of less than ₹3 crore:

*Canara Bank RD Interest Rates w.e.f March 17, 2026.

Types of Canara Bank Recurring Deposit

Canara Bank offers multiple recurring deposit options to support saving through monthly or adjustable contributions. The schemes differ in terms of eligibility and usage.

1. Regular Recurring Deposit

   Canara Bank's recurring deposit (RD) is a popular savings tool that lets you set aside a fixed amount regularly, usually monthly, for a specific period. It's suitable if you're looking to grow your savings bit by bit while also earning a reliable interest rate. You can choose how long you want your Canara Bank RD to last, from 6 months to 10 years.

2. Canara Dhanvarsha Flexi RD

   It is a flexible savings plan suitable for those who prefer to invest consistently, allowing deposits of different amounts at any interval. Unlike a regular RD, where you pay the same amount each month, this Canara Bank flexi RD lets you withdraw extra funds multiple times a month. The minimum monthly amount is ₹500, and the maximum is ₹1 lakh.

   The stated tenure of the scheme is a minimum of 1 year, in multiples of 3 months, with a maximum term of 10 years. Additional amounts deposited under the flexi option are not considered prepayments for future installments.

3. Nitya Nidhi Deposit Scheme

   Canara Bank Nitya Nidhi Deposit Scheme (NND) permits deposits starting from only ₹50 per month, while daily collections are limited to ₹1,000 and the overall maximum amount is ₹30,000. The scheme also provides a loan facility of 75% of the outstanding balance and includes nomination benefits. The plan exists for 63 months with a 2% maturity rate.

   If you need to, you can close your deposit account before completing the full tenure. The Canara Bank RD premature withdrawal offers access to funds during emergencies, but it lowers total overall returns compared to remaining invested until maturity.

   Here’s how the penalty charges may apply:

   Period of NND deposit	Revised rates (%)	Recovery of penalty (%)
   Less than 12 months	0.10	0.05
   Completed 12 months and less than 24 months	0.25	NA
   Completed 24 months and less than 39 months	0.50	NA
   Completed 39 months and less than 63 months	1.00	NA
   63 months on maturity	2.00	NA

   *Canara Bank Premature withdrawal w.e.f 15.06.2023.

Key Features of Canara Bank RD Scheme

Canara Bank's RD scheme is designed to suit different kinds of investors with these features:

• Flexible Deposit Terms: Choose a deposit period that suits you, from 6 months up to 10 years, in increments of 3 months.
• Quarterly Compounding: Grow your funds steadily with interest compounded quarterly.
• Loan/Overdraft Availability: The Canara Bank loan against RD allows investors to borrow up to 75% of the invested amount.
• Extra Benefits for Seniors: Senior citizens enjoy an additional RD interest rates of approximately 0.50% per year.
• Premature Withdrawal Option: Withdraw funds early if needed, with a minimal penalty, depending upon the scheme and the withdrawal timeline.
• No Upper Limit on Deposits: Invest as much as you like, with no maximum deposit restrictions.

How to Open a Canara Bank RD Account

You can start an RD account either at a branch or through online banking. The process is easy and convenient.

Offline Method

You can easily open an RD account offline using the following steps:

• Branch visits: Visit the local Canara Bank branch in your area.
• Fill the Form: Fill in the RD application form.
• Submit documents: Submit the necessary KYC documents.
• Choose details: Select the instalment amount and tenure
• Deposit initial instalment: Pay the first monthly instalment.
• Set Instructions: Provide payment or standing instructions
• Account activation: The bank opens the RD account and provides confirmation

Online Method

If you already hold a Canara Bank savings account, you may open an RD using online banking or mobile banking.

• Log in: Log in to the Canara Bank’s internet or mobile banking.
• Select the RD option: Click next to the deposits, then select the RD option.
• Enter details: Fill in the instalment amount and tenure
• Link account: It is suitable to choose your Canara Bank savings and current account
• Review and submit: Verify the details and submit.
• Confirmation: You can easily receive the RD account confirmation

Eligibility Criteria for Canara Bank RD

The following are the eligibility criteria for opening an RD account with Canara Bank.

• Individual Account: Any adult individual can open an RD account in their own name.
• Joint account: A joint account is similar to a standard recurring deposit. The account usually has two to three individuals.
• Minors: Canara Bank offers a savings account for minors aged 10 and above, allowing them to manage their money independently.

Key Takeaways

The Canara Bank RD interest rates provide special privileges for senior citizens and are slightly advantageous on a larger scale. Typically, the RD interest rates range from 5.25% to 6.25% for the general public and from 5.75% to 6.75% for senior citizens. A key feature of the bank is the option to select tenure and deposit amount. You can begin with a small monthly deposit of ₹50, making it very suitable for all income groups. RDs are most suitable for monthly small savings. If you want to earn guaranteed returns from a one-time lump sum investment, also check the best FD interest rates offered by banks and NBFCs.