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Introduction
A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.
The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account. It is ideal for those who are not capable of investing a huge amount at one go. It is often recommended for starters to invest in a Recurring Deposit Scheme.
About Central Bank of India Recurring Deposit
- Advantages to opening an RD account
- Central Bank of India Recurring Deposit
- Key Features of Central Bank of India RD Account
- Types of Recurring Deposits Offered by Central Bank of India
- Central Bank of India Recurring Deposit Interest Rates
- Central Bank of India Recurring Deposit interest rates 2015 – 2016
- Central Bank of India Senior Citizen RD Interest Rates
- Central Bank of India RD FAQs
Advantages to opening an RD account
- Interest Rate earned is generally equal to that of an FD
- Safe and secure form of investment
- Secure from fluctuations and volatility
- Ideal for starters
- Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
- Can be opened with small minimum amount.
- Lump sum received at maturity, including the interest
- The rate of interest is higher as compared to an ordinary saving bank account
- Flexible tenures to suit the budget of the individual
- Loan / overdraft facility available with some banks.
Central Bank of India Recurring Deposit
An RD in Central Bank of India instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Central Bank of India Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance. The RD scheme is much recommended to those who are salaried and regular income people.
Key Features of Central Bank of India RD Account
- Similar to other term deposit opened for a fixed period with monthly installments.
- Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
- Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
- Attractive interest rates: Offers a higher rate of interest than a savings bank account.
- Is a safe, low-risk form of investment.
- Quick liquidity options and access to your funds when you need it at nominal penal charges.
Types of Recurring Deposits Offered by Central Bank of India
Regular Recurring Deposit:
- Minimum Opening Balance for Central Bank of India RD account: Fixed sum of Rs. 100 or multiples of Rs. 50
- Period of RD: 6 months to 120 months with quarterly intervals like 12, 15, 18, 21, 24 months etc.
- Preferential interest rate for senior citizens, staff /ex staff /widow-widower of staff and ex staff cum Senior citizen
- TDS on Interest is applicable
- Deposit period: Minimum 12 months to 24 months
- Nomination facility available
- Premature Closure of RD Allowed
- Loan/ Overdraft against deposit is available under the scheme up to 90% of the deposit amount and accrued interest.
- Special passbooks issued
CENT Swa-Shakti Flexi Recurring Deposit Schemes
- Minimum monthly Core instalment of Rs. 100 in multiples of Rs. 100 thereof.
- Maximum ceiling of Rs. 100000.
- Deposit of additional fund allowed beside the monthly core amount. The total monthly deposit should not exceed 10 times of the core amount. Also, the monthly instalment can be reduced in any month but it should not be lesser than the core amount.
- Period of RD: 6 months to 120 months
- Loan, OD and advances up to 90% of the deposit amount plus accrued Interest available
- Premature closure allowed.
- No penalty for premature closure or delayed installments
- Nomination facility available.
- Preferential interest rates for senior citizens.
CENT Lakhpati RD Scheme
- A new Recurring deposit product – "Jab Chaho Lakhpati Bano" scheme
- Preferential interest rates for senior citizens and staff/ex staffs
Details as given below
| Period in years | Rate of interest (% p.a.) | Monthly installment(INR) | Maturity value (INR) |
|---|---|---|---|
| 1 | 7.00 | 8030 | |
| 2 | 6.90 | 3880 | |
| 3 | 6.90 | 2500 | |
| 4 | 6.90 | 1810 | |
| 5 | 6.90 | 1400 | |
| 6 | 6.90 | 1130 | |
| 7 | 6.90 | 930 | |
| 8 | 6.90 | 790 | |
| 9 | 6.90 | 670 | |
| 10 | 6.90 | 580 |
(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 the bank directly.)
Cent Millionaire Recurring Deposit Scheme
- Tenure: 10 years
- Rate of Interest: 6.90%
- Monthly Amount to be invested: Rs.5790/-
- Maturity Amount after 10 years: Over Rs.10 lacs
- TDS is applicable on interest earned
Central Bank of India Recurring Deposit Interest Rates
Central Bank of India Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Central Bank of India Recurring Deposit by investing in any of its RD schemes. Following is an overview of Central Bank of India RD interest rates including Central Bank of India Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Central Bank, it is advisable to check with the bank directly.
Central Bank of India recurring deposit interest rates 2015 – 2016
The interest rate will be as per prevailing term deposit card rate. It is calculated on a daily basis and credited every half year in June / December. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis
Central Bank of India Senior Citizen RD Interest Rates
Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.
Central Bank of India Bank RD FAQs
1.Who is eligible to open an RD account with Central Bank of India?
The following are eligible to open an RD with Central Bank:
- A person in his individual capacity.
- More than one person in their joint names
- A minor jointly with a major
- A minor over the age of 10 years who can read and write and operate the account personally
- Charitable and educational institutions (if they do not conduct business of commercial nature)
- HUF
- Blind Persons
- Illiterate persons
- Private Traders, Professionals Partnerships Firms, Companies, Clubs, Societies & Corporates.
2. What is the minimum and maximum amount required to open an RD with Central Bank of India Bank?
The minimum opening balance for a regular recurring deposit with Central Bank of India Bank is Rs. 100.
3. What is the minimum deposit period?
The minimum deposit tenure is 6 months and can go up to as high as 120 months.
4. How do I apply for a regular recurring deposit?
If you are a new customer, you can start with opening a savings account, which can be linked with an RD account. Alternately, you can visit your nearest branch and submit the Deposit Account form.
5. What is the maximum monthly installment for minor RD?
The maximum monthly installment is restricted to Rs.500 with the maturity value not exceeding Rs.50000 at any given time.
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