CENT Tax Saver Deposit

Taxation in India is quite detailed and most of the time, it is noticed that if proper care is not taken in saving, one’s earnings are set back through income tax. The CENT Tax Saver Deposit scheme proves its uniqueness by providing an avenue for savings, as well as protecting the savings from unnecessary tax cuts. This tax saving term deposit scheme from Central Bank of India is designed to help you save tax, making sure your hard earned money can be yours, serving the dual role of a savings cum growth plan.

Eligibility criteria to apply for CENT Tax Saver Deposit

The CENT Tax Saver Deposit account from Central Bank of India can be opened by the following.

• An individual in his/her own name
• A joint account between two or more individuals
• A guardian or a parent can open this account for a minor
• Hindu Undivided families

Features of CENT Tax Saver Deposit

CENT Tax Saver Deposit Interest Rates

The interest rate offered by Central Bank of India on the CENT Tax Saver Deposit depend on bank policies, with rates subject to change accordingly. The current interest rate for this account is 7.50% per annum for regular accountholders. Senior citizens may be entitled to a higher interest rate.

Note: Individuals should check the interest rates with the bank before opening an account as Central Bank of India maintains the right to change rates without prior intimation and at its sole discretion. The rates mentioned above are for January 2016.

CENT Tax Saver Deposit FAQs

1. Can this account be opened by associations or clubs?

   No, this account cannot be opened and maintained by societies, clubs, companies, etc.

2. Is there a limit on the number of times an individual can deposit money into this account?

   There is no limit on the number of times an individual can deposit money into the account, subject to the deposits not exceeding INR 100000 a year.

3. How much additional interest is paid to senior citizens?

   Senior citizens might be entitled to an interest which is 0.5% higher than regular interest rates.

4. Is premature withdrawal permitted in this account?

   No, premature withdrawal is not permitted under general circumstances. This is allowed only in the event of death of depositor.

5. Can the money deposited into this account be used as collateral for a loan/overdraft?No, the deposited money cannot be utilised as security/collateral for any purpose.