This guide covers Canara Bank RD interest rates for 2026: the latest rate slabs, scheme types, eligibility, the calculation formula and how to open or close your account online. The canara bank recurring deposit interest rate currently ranges from 5.50% to 7.00% p.a. depending on tenure and citizen category. Reading this takes about 5 minutes.
Canara Bank offers recurring deposit (RD) schemes with interest rates ranging from 5.50% to 6.50% p.a. for regular citizens and 6.00% to 7.00% p.a. for senior citizens, depending on tenure. These rates apply to deposits below ₹2 crore and stay fixed for the tenure once your account is open. Here’s a complete breakdown of canara bank RD interest rate slabs, scheme types and features.
QUICK STAT
Canara Bank revises RD rates in line with its FD rates and RBI repo rate moves. The 444-day tenure currently offers the highest slab: 6.50% p.a. (regular) and 7.00% p.a. (senior).
(Source: Paisabazaar, updated 29 September 2025)
Canara Bank RD Interest Rates 2026
Recurring deposits are a preferred option for consistent, low-risk returns. Canara bank RD interest rates for tenures of 6 months to 10 years apply to general and senior citizens alike. Here’s the current canara RD interest rate table for deposits below ₹2 crore:
| Maturity Period | Regular Citizens (p.a.) | Senior Citizens (p.a.) |
|---|---|---|
| 180 Days to 269 Days | 5.50% | 6.00% |
| 270 Days to Less Than 1 Year | 5.75% | 6.25% |
| 1 Year to 1 Year 3 Months | 6.25% | 6.75% |
| 444 Days | 6.50% | 7.00% |
| Over 1 Year 3 Months to 10 Years | 6.25% | 6.75% |
Disclaimer: Rates change with Canara Bank’s policies. Confirm the current rate with the bank before opening an account.
Canara Bank RD Interest Rate Highlights
| Parameter | Detail |
|---|---|
| Highest slab rate | 7.00% p.a. (senior citizens, 444 days) |
| Highest rate, regular citizens | 6.50% p.a. (444 days) |
| Lowest slab rate | 5.50% p.a. (180 to 269 days) |
| Tenure range | 6 months to 10 years |
| Minimum monthly deposit | ₹50, no upper ceiling |
| Senior citizen benefit | Extra 0.50% p.a. on all tenures |
Types of Canara Bank RD Schemes
The canara bank recurring deposit scheme comes in 2 variants, built for different saving habits:
| Scheme | Deposit Range | Tenure | Key Feature |
|---|---|---|---|
| Regular RD | ₹50/month, no ceiling | 6 months to 10 years | Loan of up to 90% of balance |
| Canara Dhanvarsha (Flexi RD) | ₹500 to ₹1 lakh/month | 1 year to 10 years | Allows more than one instalment a month |
Features and Benefits of Canara Bank RD Schemes
Canara Bank’s RD suits conservative, goal-based savers. Key features:
- Deposit Amount: Instalments from ₹50/month, no ceiling on the regular RD.
- Flexible Maturity Period: 6 months to 10 years, based on your goal.
- Loan Against RD: Borrow up to 90% of your deposit without breaking it.
- Higher Rates for Senior Citizens: Extra 0.50% p.a. from age 60.
- Premature Closure: 1% interest penalty if closed before maturity.
- Delayed Instalments: ₹1.50 per ₹100/month for RDs up to 5 years; ₹2 per ₹100 above 5 years.
- Frequent Non-payment: Over 4 missed instalments, the bank settles at simple interest.
- Nomination Facility: Add a nominee so proceeds pass on smoothly.
PRO TIP
Set up an auto-debit mandate; it’s the easiest way to avoid delayed instalment penalties.
How to Calculate Canara Bank RD Interest Rate?
Canara Bank compounds RD interest quarterly. To calculate RD interest in canara bank:
M = P × [(1 + r/400)^(4n/12) − 1] ÷ [1 − (1 + r/400)^(−1/3)],
where M is the maturity amount, P the monthly instalment, r the annual rate and n the tenure in months.
Take Rahul, a 29-year-old marketing executive in Pune, who deposits ₹5,000 a month for 3 years at 6.25% p.a., a total of ₹1,80,000. With quarterly compounding, he gets roughly ₹1,98,500 at maturity, about ₹18,500 in interest.
Most savers just use Canara Bank’s online calculator instead of the manual formula.
How to Open Canara Bank RD Account Online?
- Log in to Canara Bank net banking or the mobile app.
- Go to ‘Deposits’ and select ‘Open Recurring Deposit’.
- Choose the scheme, then enter the monthly instalment and tenure.
- Select the linked savings account for auto-debit.
- Add a nominee, review the rate and confirm.
- Download the e-receipt for your recoRDs.
How to Close Canara Bank RD Account?
- Log in to net banking, or visit your branch with a valid ID.
- Select the RD account, then choose ‘Premature Closure’ or wait for maturity.
- On maturity, the principal and interest are credited to your linked savings account automatically.
- For premature closure, submit the request; a 1% penalty is deducted from the applicable rate.
- Check your closure confirmation or updated account statement.
WATCH OUT
Closing your RD early costs a 1% interest penalty. Weigh a loan against your RD, or a personal loan, before you break the deposit.
Eligibility Criteria for Canara Bank Recurring Deposits
- Individual or joint account.
- As a guaRDian on behalf of a minor.
- HUFs, proprietorship firms, private limited companies, associations, trusts and institutions.
Documents Required to Open Canara Bank RD Account
- A filled-in RD account opening form.
- PAN caRD copy, or Form 60/61 if you don’t have a PAN.
- 2 photographs, plus proof of identity and address.
- Other documents applicable to HUFs, firms, companies, associations, trusts and institutions.
A Canara Bank RD suits short and long-term goals alike. But for urgent needs, a wedding, medical emergency or home repair, Fibe’s Instant Personal Loan gets you up to ₹10 lakhs within minutes, with a 100% digital process and 0 foreclosure charges.
FAQs On Canara Bank RD
1.What is the interest rate for RD in Canara Bank in 2026?
For deposits below ₹2 crore, canara bank RD interest rate ranges from 5.50% to 6.50% p.a. for regular citizens and 6.00% to 7.00% p.a. for senior citizens, depending on tenure. The 444-day tenure offers the highest slab.
2. What is the minimum deposit amount for a Canara Bank RD account?
The regular RD starts at ₹50 a month with no upper limit. The Dhanvarsha Flexi RD needs a minimum of ₹500 a month, capped at ₹1 lakh.
3. What is the maximum tenure for a Canara Bank recurring deposit?
The maximum tenure is 10 years. You can choose any tenure between 6 months and 10 years, in multiples of 3 months.
4. Can I take a loan against my Canara Bank RD account?
Yes, up to 90% of your RD balance, so you don’t need to break your deposit early for short-term cash needs.
5. Is Canara Bank RD interest taxable?
Yes. RD interest is taxed as per your income tax slab. Canara Bank deducts 10% TDS once interest crosses ₹40,000 in a financial year, or ₹50,000 for senior citizens, if your PAN is on recoRD.
6. Can I renew my Canara Bank RD after maturity?
Yes, at the rate applicable on the renewal date. You can also transfer the maturity proceeds to your savings account instead.
7. I need cash for a medical emergency but have money locked in an RD. Should I break it early?
Breaking it early costs a 1% interest penalty. Compare this with a loan against your RD, up to 90% of the balance, or an instant personal loan, both of which keep your savings intact.