Central Bank of India Fixed Deposit Rate
Central Bank of India Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) is one of the most popular financial instruments among the general populace in India as it is a safe and reliable investment which provides a higher rate of interest than a regular savings account.
It is generally a short term deposit to enable depositors to earn a moderate rate of interest, which is more than that earned in a savings account. The depositor is free to choose the time period (tenure) of the Fixed Deposit.
A fixed deposit is considered to be a low-risk form of saving as it is free from market risks. However, the rewards are proportionately low as well when compared to other forms of investing, for instance, investing in the stock market.
Money can be deposited in an FD account for a period that usually ranges from 7 days to 10 years (or more in case of some banks). The banks are free to set their own FD interest rate which in India can generally range from 3.5% - 8%, depending on the tenure and amount among other factors. If you some money which you have saved and wish to invest, opening an FD is a simple, low-risk option, which is hassle-free and has assured (though low) returns.
A defining criterion that you should know about an FD prior to opening one is that the money deposited cannot be withdrawn before maturity, except on payment of a penalty. Once the deposit matures, the bank credits the principal amount along with the interest earned to the bank account specified on the application form when the FD is opened.
Apart from banks, NBFCs and corporates too offer fixed deposits.
Central Bank of India Deposit Rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. Central Bank of India Bank Interest Rates typically ranges from 4%-8% per annum.
The interest earned can be paid in three ways: Simple interest paid on maturity of the deposit, Interest paid on monthly basis (at discounted rate) or quarterly basis. You can choose which kind of interest payout you want.
Central Bank of India FD rates
Following is an overview of Central Bank of India Term Deposit Rates and Central Bank of India Short-Term Fixed Deposit Interest Rates.
Central Bank of India Interest Rates on Fixed Deposits 2015 – 2016:
(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Central Bank of India directly.)
|Maturity Period||Revised rate for < Rs. 1 cr||Revised rate for < Rs. 10 cr|
|7 -14 days||5.00||5.00|
|15 - 30 days||5.00||5.50|
|31 - 45 days||5.50||5.50|
|46 - 59 days||6.25||6.25|
|60 - 90 days||6.50||6.25|
|91 - 179 days||6.50||6.50|
|180 - 270 days||7.00||6.75|
|271 - 364 days||7.25||6.75|
|1 yr to less than 2 yrs||7.40||6.75|
|2 yr to less than 3 years||7.40||6.75|
|3 yr to less than 5 years||7.25||6.75|
|5 years & above upto 10 years||7.25||6.50|
Aggregate bulk deposit rate above Rs.10 crore
|Maturity Period||Revised Rate (%)|
|12 months to 13 months||6.75|
Central Bank of India FD Interest Rates for Senior Citizens
Central Bank of India Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates on a regular FD. As of now, Central Bank of India Senior Citizen FD rate of interest is 0.50% higher for all maturity periods.
How to Calculate Central Bank of India Fixed Deposit Interest
You can use online FD calculators and other such resources to help you identify how much interest you will earn on the principal amount deposited. All you need to do is enter the FD amount, tenure, and rate of interest – and the calculator will do the rest and present you with a breakup of the interest earned and the total maturity amount.
There are several online sites that allow you to instantly calculate the interest earned. You can enter as many combinations as you want, and the calculator will give you instant and accurate results. Using an online calculator eliminates the hard mathematical work and rules out human error. So it is always advisable to use an FD calculator to help you determine how much you want to invest. It also lets you identify the interest earned through your principal amount.
You can also calculate the interest earned and the maturity value on the principal amount using the following formula.
Calculate IDBI FD Rate
A = P x (1 + r/n)nt
I = A - P
A = Maturity Value
P = Principal Amount
r = Rate of Interest
t = Number of Years
n = Compounded Interest Frequency
I = Interest Earned
Central Bank of India FD Premature Withdrawal Penalty
There are certain times where you might be in a requirement of urgent funds, say for instance, for higher education or medical purposes. Breaking a fixed deposit before the maturity date is possible and might come in handy if you are in an urgent need for funds in case of an emergency.
In such cases the bank will allow partial or complete withdrawal of the deposit before completion of the period of the deposit. The bank typically charges a small penalty which is communicated to you at the time of application of FD Deposit.
When you break a fixed deposit account before maturity, keep in mind that you will not get the same interest rate offered originally. You will get the interest rate which is applicable for the current tenure of the FD.
Central Bank of India FD – FAQS
What is the time period for a fixed deposit?
The period of deposit ranges from a minimum of 7 days to a maximum of 120 months.
How is the interest paid?
Simple interest is credited into the specified account at half yearly intervals in March & September every year or upon the maturity of the deposit, whichever is earlier.
What is the eligibility for opening an FD account with Central Bank of India?
The following are eligible to open FD accounts with Central Bank of India:
Any individual, more than one person in their joint names, minor jointly with a major, a minor over the age of 12 years who can read and write and operate the account personally, charitable and educational institutions, HUF, professional partnerships firms, company clubs, societies and corporates.
What is the documentation required for individuals to open an FD account in Central Bank of India?
The documentation for opening an FD account is simple. In addition to the usual Identity proof, Address proof, Signature proof and Age proof (for senior citizens), you would be required to submit the filled in Application Form as well as a photograph.