Savings
Canara Bank recurring deposit rates: the FD schedule, minus the two specials
Canara Bank pays 6.25% (6.75% for seniors) on every RD from one year to ten years. The 444 and 555-day specials are not on its RD page; the instalment rules bite.
Canara Bank prices a recurring deposit at its term-deposit rate for the same tenure, and on the schedule effective 17 March 2026 that rate is 6.25% for the general public and 6.75% for senior citizens on every tenure from one year to ten years. A six-month RD pays 5.25% (5.75% senior) and a nine-month one 5.50% (6.00%). The two specials that give the bank its FD headline — 6.50% at 444 days and 6.60% at 555 days — are not on the RD page, so 6.25% is the rate to plan on.
Rates below are for resident domestic deposits below ₹3 crore, read from Canara Bank’s rate page, RD product page and 2026-27 deposit policy on 11 September 2026; the bank revises its bulk-deposit rates far more often than the retail schedule, which is still the one effective 17 March 2026. Confirm the rate on the booking screen before the first instalment leaves your account.
The RD rate is the FD rate, and the FD rate is flat
Two sentences on the bank’s own pages do the work. The RD product page gives the rate as “As applicable to term deposits of various tenures prevailing from time to time, Interest compounded quarterly”, and the note beneath the term-deposit schedules reads: “The above Rate of interest is applicable to Recurring deposits also.” There is no separate RD schedule; the FD table is the RD table, restricted to the tenures an RD can be opened for.
The deposit policy sets those tenures: a minimum of six months and a maximum of ten years. Within that window the schedule collapses to three rows.
| RD tenure | General | Senior citizen (60 and above) |
|---|---|---|
| 6 months to under 9 months (180–269 days) | 5.25% | 5.75% |
| 9 months to under 1 year (270 days to under 1 year) | 5.50% | 6.00% |
| 1 year to 10 years | 6.25% | 6.75% |
The FD schedule prints seven rows across the one-to-ten-year range and prices every ordinary one identically. On an RD that is the whole story: a ten-year commitment earns exactly what a twelve-month one earns, and the only decision the rate can inform is whether to go under a year at all.
For orientation, Canara’s savings bank rate is 2.50% a year on balances below ₹100 crore, effective 5 September 2026. Against that, even the six-month RD row pays 2.75 percentage points more, which is the real argument for the product: money that would otherwise sit at 2.50% is moved, monthly and automatically, to 6.25%.
The 444-day and 555-day specials, and what the RD page offers
Canara’s FD page carries two special tenors, 444 days at 6.50% and 555 days at 6.60%. Both rows are marked ## on the schedule, which is the super-senior footnote — “Additional rate of interest 0.60% for Super Senior Citizen (80 years & above) is extended under Canara 444 & Canara 555 products only, for both Callable & Non-Callable deposits.” An RD is not one of those two products, so an 80-year-old opening one earns the ordinary senior rate of 6.75% and nothing more. The bank publishes no minimum-deposit condition on either rate: a callable 555-day deposit can be opened with ₹1,000 and a 444-day one with ₹25,000.
What the bank does not publish is whether either tenor can be booked as a recurring deposit. The RD product page names no 444-day or 555-day option, and neither it nor the deposit policy says one can be. The neighbouring rows, labelled “except 444 days” and “except 555 days”, pay 6.25%, the rate every ordinary tenure from one year to ten carries. Our page on Canara Bank FD interest rates sets out both specials as lump sums; if you want either tenor on an RD, ask at the branch rather than assume the rate carries across.
Two RDs: the plain one and Canara Dhanvarsha
Canara sells two monthly recurring deposits — a third scheme, Nitya Nidhi, takes daily contributions of ₹50 and upwards through agents on a fixed 63-month tenor — and the differences between the two monthly products matter more than the rate.
The plain Canara Recurring Deposit is open to individuals, minors through a guardian, HUFs, firms, companies and trusts. Interest is compounded quarterly and paid at maturity, and a loan of up to 90% of the balance is available. The page prices a late instalment, as the next section sets out. What it does not print is the minimum instalment or whether that instalment can be changed after opening. Comparison sites updated on 10 September 2026 give the minimum as ₹50 a month in multiples of ₹50; we could not find that figure on any Canara page, so treat it as the account-opening screen’s to confirm rather than ours.
Canara Dhanvarsha is the flexible version, and its page is far more specific. The core instalment is ₹500 to ₹1 lakh a month; the tenure runs from one year to ten in multiples of three months; additional deposits can be made “any number of times in a given month in multiples of regular installment”, earning interest on a daily-product basis. There is no penalty for a delayed instalment and none for premature withdrawal — the closed deposit earns the rate for the period it ran or the contracted rate, whichever is less. The 90% loan and the senior uplift carry across.
Read together, the two pages settle what the plain product leaves open: if Dhanvarsha needs to advertise “No penalty for delayed payment of instalment”, the ordinary RD has one. Anyone with irregular income is choosing Dhanvarsha and its ₹500 floor rather than the plain RD and its priced delay.
Missing an instalment
The bank prints the price on its own RD page: ₹1.50 for every ₹100 of instalment per month for RD accounts of five years, and ₹2 for every ₹100 per month above five years. The page adds that where more than four instalments are in arrears the account is repaid at simple interest on a monthly-product basis, a rule it states does not apply to RD accounts opened on or after 1 April 2020. On a ₹5,000 instalment that is ₹75 for each month late, small against the ₹52,600 of interest a five-year RD earns.
Two things soften it. Standing instructions to your own RD are exempt from Canara’s standing-instruction charges, so the auto-debit that prevents a default costs nothing. And Dhanvarsha waives the delay penalty outright; where instalments are likely to slip, that waiver is the whole argument for it.
What ₹5,000 a month becomes
The bank compounds RD interest quarterly. Our figures below use that: each instalment earns simple interest from the month it is paid, accrued interest is added to the balance at each quarter end, and the closing quarter is pro-rated. Canara follows the Indian Banks’ Association formulae, so its own calculator may differ from ours by a few rupees on the intra-quarter convention. Run your own amount and tenure through the RD calculator before booking.
| Tenure | Paid in | Maturity at 6.25% (general) | Maturity at 6.75% (senior) |
|---|---|---|---|
| 12 months | ₹60,000 | ₹62,061 | ₹62,228 |
| 36 months | ₹1,80,000 | ₹1,98,348 | ₹1,99,907 |
| 60 months | ₹3,00,000 | ₹3,52,633 | ₹3,57,307 |
| 120 months | ₹6,00,000 | ₹8,33,462 | ₹8,56,643 |
Five years of ₹5,000 a month produces about ₹52,600 of interest for the general public and ₹57,300 for a senior citizen; the same instalments in a Canara savings account at 2.50% would produce roughly ₹19,800, so the RD is worth about ₹32,800 more over the period.
Because the rate is flat past one year, length earns nothing extra: the 120-month row earns more only because it runs longer, and it locks today’s 6.25% in for a decade.
Closing it early, and the day after maturity
Canara’s RD page states the rule: “A penalty of 1.00% will be levied for premature closure of Recurring Deposits that are opened on or after 04.02.2011. Such prematurely closed Recurring Deposits will earn interest at 1.00% below the interest rate as ruling on the date of deposit and as applicable for the period run.” The deposit policy adds that the rate used is the lower of the period-run rate and the contracted rate, and that nothing is paid on a deposit closed before its seventh day.
The flat curve changes what that costs. On most banks’ cards the rebuild to the shorter tenure’s rate is the larger loss and the 1% the smaller. At Canara, past one year, there is nothing to rebuild: a five-year RD closed after two years is re-rated to the two-to-three-year rate, which is the same 6.25%, and the penalty is the full percentage point and no more. On ₹5,000 a month closed after 24 months, 5.25% instead of 6.25% pays about ₹1,26,760 against ₹1,28,090 — roughly ₹1,330 given up; a senior citizen drops from about ₹1,28,760 to ₹1,27,420.
Inside the first year the rebuild does bite. Close at nine months and the reference is the 270-day-to-one-year row at 5.50%, less a point, so 4.50% — about ₹330 less on nine instalments. The bank also charges ₹100 plus GST for premature closure of an RD within one year of opening, under its published schedule of non-credit and non-forex service charges, which carries no effective date; on a small RD that fee can exceed the interest lost.
Where the cash need is temporary, the bank’s own alternative is the loan against the deposit at up to 90% of the balance, which leaves the RD running at its contracted rate. Our guide to a loan against FD sets out how to price one against a closure.
The day after maturity
An RD is a term deposit under Canara’s policy, and its maturity rules apply. A matured deposit left unclaimed earns “rate of interest as applicable to saving account or the contracted rate of interest on the matured TD, whichever is lower” — a fall from 6.25% to 2.50% on the morning after. Automatic renewal is available to depositors who opt for it. Give the maturity instruction when you open the account.
Seniors, and turning 60 mid-deposit
The senior uplift on a Canara RD is the FD uplift: 0.50% over the general rate on retail deposits of 180 days and above, which on an RD means every tenure the bank offers. The policy’s conditions apply. The senior citizen must be the first-named depositor; the uplift is not paid on NRO, NRE or Capital Gains Account deposits, or on a deposit in the name of a Hindu Undivided Family or its karta, even where the karta is himself a resident senior citizen. Retired Canara employees aged 60 and above get 1.50% over the general rate.
One clause in the 2026-27 policy is unusual, because most banks reprice only on renewal: “As per RBI direction, the system will automatically enable preferential ROI (i.e. 0.5 % over and above existing deposit rate) to all existing Domestic Term Deposits and RD deposits with effect from the date of customer becoming Senior Citizen.” A depositor who opens a ten-year RD at 57 is, on that wording, moved to 6.75% on turning 60 without asking. Check the account after the birthday rather than assume.
For a retiree the comparison that matters is not another bank’s RD. The Senior Citizens Savings Scheme pays 8.2% for the quarter ending 30 September 2026, sovereign-backed, paid quarterly, with a ₹30 lakh ceiling and eligibility from age 60 — 1.45 percentage points above Canara’s best senior RD rate, though it takes a lump sum. Anyone over 60 saving monthly should move accumulated instalments into an SCSS account in ₹1,000 multiples and keep the RD for the residue. The Post Office five-year RD, at 6.7% on our data (held as likely rather than verified on a primary page), sits between Canara’s two rates and pays everyone the same; our page on the post office RD interest rate compares it with the bank RDs.
Tax, TDS and the ₹5 lakh cover
RD interest is taxed at your slab rate as income from other sources in the year it accrues, whether or not it has been paid to you, so a five-year RD is taxed across five or six financial years. The bank’s policy is explicit that TDS applies to “all term deposits (including RD)” — it has applied to RD interest since 1 June 2015 — and is deducted at the quarterly compounding date and on an accrual basis as on 31 March.
The thresholds are bank-wide: ₹50,000 of interest across all your deposits at Canara in a financial year, or ₹1,00,000 for a resident senior citizen, at 10% with PAN and 20% without. The policy’s text still names Forms 15G and 15H as the nil-tax declaration; those were replaced by Form 121 from 1 April 2026, which requires both nil estimated liability and total income below the basic exemption limit. TDS is a credit against your final liability, not a settlement of it; our page on tax on FD interest works through the accrual rule and the declaration test.
At 6.25% before tax a depositor in the 30% band keeps about 4.3% after cess, and that is the figure to compare with anything else.
Deposit insurance covers principal and interest up to ₹5 lakh per depositor per bank, in the same right and capacity, branches aggregated, and the RD balance sits inside that limit alongside every FD and savings balance you hold at Canara. A ₹5,000-a-month RD is nowhere near the line on its own; a depositor who has already placed a ₹5 lakh 555-day special at the bank is above it before the first instalment. The mechanics are in our page on DICGC deposit insurance.
Before you book
| If the money is needed in | The RD that fits | Rate | The trap next to it |
|---|---|---|---|
| Six to nine months | Plain RD, 6 months | 5.25% | Closing inside a year costs 1% of rate plus ₹100 and GST |
| Nine months to a year | Plain RD, 9 months | 5.50% | At 12 months the rate steps up to 6.25% — book the full year |
| One to ten years, fixed monthly amount | Plain RD, any tenure | 6.25% (6.75% senior) | Length earns nothing extra; match the tenure to the goal |
| One to ten years, irregular income | Canara Dhanvarsha | Same schedule | ₹500 minimum, but no default fee and no closure penalty |
| Retirement income, lump sum in hand | Not an RD | SCSS 8.2% | Instalments cannot go into SCSS; move them once accumulated |
Set the standing instruction from your own Canara account so the auto-debit is free, price the plain RD’s published late-instalment charge — ₹1.50 per ₹100 per month to five years, ₹2 above — against Dhanvarsha’s nil charge before choosing between them, and read the senior citizen flag on the confirmation. Other banks price their RDs off very different FD curves — several pay their peak on a tenure an RD can reach — and our comparison of FD interest rates shows each bank’s curve with its effective date.
Common questions
Does a Canara Bank RD earn the 555-day rate of 6.60%?
Not on anything the bank publishes. Canara publishes no separate RD schedule and no 444-day or 555-day recurring-deposit option; its RD page prices the deposit as “As applicable to term deposits of various tenures prevailing from time to time”. The bank has not published whether an RD can be booked for exactly 444 or 555 days, so confirm on the booking screen. The ordinary tenures from one year to ten years pay 6.25% general and 6.75% senior on the schedule effective 17 March 2026.
Is Canara Bank's RD interest rate the same as its FD rate?
Yes, and the bank says so twice. The RD product page gives the rate as “As applicable to term deposits of various tenures prevailing from time to time, Interest compounded quarterly”, and the note under the term-deposit schedule reads “The above Rate of interest is applicable to Recurring deposits also.” There is no separate RD table. Because Canara prices every ordinary FD bucket from one year to ten years at the same 6.25%, an RD of any length in that range earns the same rate; only the six-month and nine-month tenures pay less, at 5.25% and 5.50%.
What happens if I miss an RD instalment at Canara Bank?
The maturity value falls, because interest is credited on the instalments actually paid and a late one is charged for. Canara's RD page sets the charge at ₹1.50 per ₹100 of instalment per month for RD accounts of five years and ₹2 per ₹100 per month above five years; where more than four instalments fall into arrears the account is repaid at simple interest on a monthly-product basis, a rule the page says does not apply to RD accounts opened on or after 1 April 2020. A standing instruction from your own Canara account is exempt from the bank's standing-instruction charges, and the Canara Dhanvarsha flexible RD carries no delay penalty at all.
What does it cost to close a Canara RD before maturity?
One percentage point off the rate for the period the deposit actually ran, plus ₹100 and GST if the account is under a year old. The RD page states that recurring deposits opened on or after 4 February 2011 earn “1.00% below the interest rate as ruling on the date of deposit and as applicable for the period run”. Since Canara prices every tenure from one year to ten at 6.25%, an RD closed after its first anniversary is re-rated to the same 6.25% and loses exactly 1%: on ₹5,000 a month closed at 24 months, about ₹1,330. Nothing is paid on a deposit closed before its seventh day.
Do senior citizens get a higher RD rate at Canara Bank?
Yes, 0.50% over the general rate, which makes every RD tenure from one year to ten years 6.75% on the current schedule. The policy conditions apply: the senior citizen must be the first-named depositor, the uplift is not paid on NRO or NRE deposits or on a deposit in the name of a Hindu Undivided Family or its karta, and depositors aged 80 and above get no further uplift on an RD because the 0.60% super-senior addition is confined to the 444-day and 555-day FD products. Canara's policy also states that a running RD is moved to the senior rate automatically from the date the depositor turns 60.
Is TDS deducted on Canara Bank RD interest?
Yes. TDS has applied to recurring deposit interest since 1 June 2015, and Canara's deposit policy states that it deducts tax on interest across “all term deposits (including RD)” at the quarterly compounding date and on an accrual basis as on 31 March. The thresholds are ₹50,000 of interest across all your deposits at the bank in a financial year, or ₹1,00,000 for a resident senior citizen, at 10% with PAN and 20% without. The declaration to stop deduction where no tax is due is Form 121, which replaced Forms 15G and 15H from 1 April 2026; the bank's policy text still names the older forms.
Sources
Rates and rules on this page were read directly from the following sources on the dates shown. Figures change — if you are about to act on one, confirm it at the source.
- TERM DEPOSITS - Rate of Interest (%) p.a. — deposits less than Rs.3 Crore w.e.f. 17.03.2026 (bulk deposits w.e.f. 11.09.2026), with the note “The above Rate of interest is applicable to Recurring deposits also”
- Canara Recurring Deposit for Monthly Savings
- Canara Dhanvarsha Flexible Recurring Deposit
- Policy Guidelines on Deposits: 2026-27 (PDF, 67 pages)
- DOMESTIC/NRO/NRE SAVINGS BANK DEPOSITS — rate of interest w.e.f. 05.09.2026
- Service Charges related to Non-credit & Non-Forex Items (the page carries no effective date)
- Canara Bank Recurring Deposit (RD) — 2026, updated 10 Sep 2026 (secondary source, used only for the minimum monthly instalment, which none of the bank's own pages print)
- Guide to deposit insurance
- Small savings schemes — interest rates