Corporation Fixed Deposit Rate
Corporation Fixed Deposit Rate - FD Rate in India
A Fixed Deposit (FD) is a deposit scheme which gives you a higher rate of interest than a savings account. In India, it is one of the most popular financial instruments among the general populace as it is considered to be a safe and reliable investment which provides a higher rate of interest with low risk.
Investing in a fixed deposit scheme is free from market risks and fluctuations. Other forms of investments, like investing in the stock market, offer high rewards but are correspondingly high-risk. On the other hand, the rewards are proportionately low if you invest in a fixed deposit scheme, but you can be assured of returns which are free from the volatility of market trends.
How does a Fixed Deposit Scheme work? In order to open an FD account, you need to deposit a certain minimum amount of money for a certain tenure. You will receive your initial amount plus interest earned on maturity.
Interest rate is calculated according to the tenure and the FD scheme and the tenure usually ranges from 7 days to 10 years. Banks are free to set their own FD interest rates. In India, the interest rates generally range from 3.5% - 8%, sometimes even as high as 9% depending on the tenure and amount amongst other factors. If you have idle money that you wish to invest, opening an FD is the simplest investment option, which is low-risk and has a hassle-free documentation process.
One thing you should know about opening an FD account is that the money cannot be withdrawn before maturity, except on payment of a penalty. Some banks have no penalty charges, but it is advisable to look into the penal fees well in advance before opening the FD.
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.
Corporation Bank deposit rates
The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. Corporation Bank Interest Rates typically ranges from 4%-9% per annum. Corporation Bank offers nomination facility, premature closure facility and loan facility up to 90% on the deposit.
The interest earned can be paid in the following ways: monthly, quarterly, half yearly or yearly as per your need. You can choose which kind of interest payout you want.
Corporation Bank FD rates
Following is an overview of Corporation Bank Term Deposit Rates and Corporation Bank Short-Term Fixed Deposit Interest Rates.
Corporation Bank 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 Corporation Bank directly.)
|Maturity Band||Interest rate (%) for less than Rs.1 Crore (applicable for domestic, NRO and Capital Gains deposits)|
|7 to 14 days||5.00|
|15 to 45 days||5.00|
|46 to 60 days||6.00|
|61 to 90 days||6.00|
|91 to 120 days||6.50|
|121 to 180 days||6.50|
|181 to 270 days||7.00|
|271 days to less than 1 year||7.00|
|>1 year to less than 3 years||7.30|
|3 years & Above||7.15|
NRE Term Deposits Interest Rates:
|Maturity Period||Interest rate (%) for less than Rs.1 crore||Rs.1 Crore to < Rs.10 Crore||Rs.10 Crore & above|
|>1 year to less than 3 Years||7.30||6.75||5.90|
|3 years and above||7.15||6.75||5.75|
Corporation Bank FD Interest Rates for Senior Citizens
Corporation Bank offers special Senior Citizen FD Rates which is generally marginally higher than the rates on a regular FD. As of now, Corporation Bank Senior Citizen FD Rate of interest is 0.50% higher for all maturity periods of 91 days and above for amount less than Rs. 1 Crore. However, deposits of Senior citizens opened under Special Deposit Scheme, NRO, NRE, HUF, Capital Gains (B) are not eligible for this benefit.
How to Calculate Corporation Bank Fixed Deposit Interest
You can use the Corporation Bank FD Calculator to help you identify how much interest you will earn on a principal amount. All you need to do is enter the desired maturity amount, time period, rate of interest and the frequency of compounding-whether monthly, quarterly, half-yearly, or annually. The calculator will do the hard number crunching and present you with a breakup of the interest earned and the maturity amount.
You can also use other online resources to calculate the interest accrued on your Corporation Bank FD. 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 helps in determining how much you want to invest in an FD account.
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
Corporation Bank FD Premature Withdrawal Penalty
In times of emergency, where you might be in dire need of cash, breaking your FD account and might seem to be the only possible option. Breaking a fixed deposit before the maturity date is possible and might come in handy if you are in an urgent need for funds – for example, in case of a medical emergency. It is better to check with the bank if withdrawal from an FD is possible.
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.
In case of an emergency, it is also possible to avail a loan against your FD, which might prove to be a better option than withdrawing the entire deposit. Corporation Bank offers loan facility up to 90% on the deposit.
Corporation Bank FD – FAQS
What is the minimum period for a fixed deposit?
The minimum period you can book an FD is 7 days.
What is the minimum amount required to open an FD scheme with Corporation Bank?
A minimum of Rs.500 would be required in rural & semi urban branches and Rs. 1000 in urban & metro branches. There is no maximum limit on deposit.
Who can open an FD account with Corporation Bank?
Following entities are eligible to open an FD with this bank:
- An Individual in his/her own name.
- Individuals in their joint names
- Minor represented by parents / guardian.
- Clubs, Societies, Associations, Educational Institutions, Trusts, Firms, Partnerships, Joint Stock Companies, Executors, Administrators, HUFs, Govt. Departments, etc.
What is the documentation required for individuals to open an FD account in Corporation Bank?
You need to submit the filled in Application Form as well as a photograph along with the supporting documents like Identity proof, Address proof, Signature proof and Age proof (for senior citizens).
For how long can I keep my deposit?
You can open a fixed deposit account for any period ranging from 7 days to 10 years.