What is FDR and KDR in Canara Bank?

While opening a fixed deposit account with Canara Bank, one of the bank officials mentioned to me about FDR and KDR in Canara Bank. When I asked him about KDR full form he told me that KDR stands for Kamdhenu Deposit Receipt. He also told me about FDR. Let me explain about it to you.

What is FDR in Canara Bank?

FDR full form is Fixed Deposit Receipt. It is like any other fixed deposit in which we can deposit a certain amount of money for a fixed tenure and get a fixed amount of interest out of it. This interest is paid out to the customer at the end of the tenure.

What is KDR in Canara Bank?

As I already mentioned, the full form is Kamdhenu Deposit Receipt.  It is also an investment plan, rather a reinvestment plan in which we can deposit a certain amount of money in multiple installments over a period of time. In this, the interest is usually compounded quarterly and when the amount matures by the end of the tenure, the investor receives the entire amount.

Here is a table comparing the features of FDR and KDR:

I hope this helps you understand more than just KDR full form.

Last week I started talking with a bank official regarding the KDR or Kamadhenu deposit in Canara and wanted to know more about it. After much discussion, I could not understand what is the difference between FDR and KDR in Canara Bank and got confused. The bank official said that FDR and KDR are the same but only Canara Bank uses the term KDR for FDR since 13th April 2010. It’s a great reinvestment plan and you can say that anyone can invest in this scheme. 

I hope you have now understood

what is FDR and KDR in Canara Bank and let me tell you, you will get very good returns if you invest in this scheme. Let me highlight the eligibility criteria in detail here:

• The KDR deposit can be opened by a maximum number of 4 persons in total and no more

• A minimum amount of Rs 1000 must be deposited here

• Minors cannot invest here but guardians on behalf of minors can

• The deposit should be made for a minimum of 5 months and a maximum of 10 years

KDR gives a preferential interest rate that ranges from 3.95% to 5.35% per annum. However, the interest rate for senior citizens gets higher depending on the period for which the deposit is done.

I hope this helps you to understand that there is no difference between FDR and KDR in Canara Bank