The Central Bank of India is a major public sector bank with operations throughout the country. Established in 1911, it was the first bank to be wholly owned and operated by Indians. Central Bank of India has a pan-India presence across 27 states and 3 Union Territories, through the close to 5000 branches it operates, apart from a scattering of Retail Asset Branches (RAB), Asset Recovery Branches (ARB), and extension counters.
Fixed deposits from Central Bank of India are offered to investors looking for safe and guaranteed returns that also offers capital protection. At pre-determined interest rates and tenures, these deposits earn returns that can be reinvested for higher effective rates or paid out to create a steady income stream, depending on an accountholder’s liquidity needs.
Indian citizens, individually or jointly, Hindu Unified Families (HUF), companies, proprietorships, organizations, societies, partnerships, clubs etc. are eligible to open FD account with Central Bank of India. The eligibility criteria is more specific for particular products such as Cent Aspire, which is not available for minors and impersonal customers such as HUF, partnerships, proprietorships, companies, trusts, institutions etc.
Currently, the Central Bank of India provides the option of opening a new savings bank account online. For fixed deposits, you will have to carry all the relevant documents as requested by the bank (CBI follows KYC norms), along with the duly filled and signed application form and 2 photographs. On submitting all documents, the bank will initiate processing and get back to you in a few days at most.
For deposits up to ₹ 1 crore (rates per annum) the interest rate offered can vary from 5% to 9.00%. For deposits of fixed tenures of 555 days and 777 days, applicable interest rates are 9.00% p.a. and 9.05% p.a. respectively. For deposits above ₹ 1 crore and below ₹ 10 crores (rates per annum), rates offered vary from 5% to 8.50% for deposits held up to 10 years and for deposit amounts over Rs.10 crores the rates can go up to 8.75%.
The Central Bank of India has a special Tax Saving Deposit scheme as explained in the section titled ‘Different FD schemes from CBI’.
TDS (Tax Deduction at Source) is applied on interests earned from Central Bank of India fixed deposits. There are two main categories of tax payers here – PAN holders, and non-PAN holders. Customers who have duly submitted their PAN details to the bank are levied 10% interest on all earnings above ₹ 10,000 made through interest payment on the FD. Non-PAN holders are charged 20% interest p.a. on the same criteria.
Yes, loans can be availed against Central Bank of India fixed deposits up to a maximum of 90% of the deposit amount.
Platinum micro-chip embedded credit cards are available for all customers falling under Cent Aspire scheme as described in above sections.
Senior citizen are provided additional 0.50% p.a. interest rate on top of the standard rates applicable for non-senior citizens. Cent Benefit customers are not eligible for senior citizen rates.
NRIs and PIOs can open term deposits under three accounts – NRO, NRE and FCNR B. NRO and NRE accounts are to be maintained in INR, while FCNR B account can be held in USD, GBP, EURO, AUD and CAD. Accounts can be opened singly or jointly with a resident Indian. Interest rates on NRO accounts are the same as domestic term deposit rates.
NRE and FCNR B balances are fully repatriable and are not taxed as per income and wealth tax laws. Loans can be availed in INR against the deposit value. Premature withdrawal is allowed and nominees can be resident Indians or NRIs for the NRI accounts.
Premature withdrawal is allowed on term deposits subject to penal rates. A penal rate of interest of 1% is applicable on premature withdrawal of deposits exceeding Rs.5 lakhs. No penalty is levied if deposits are renewed for a term longer than the period remaining in the original contract.
Central Bank of India has taken centre-stage with the launch of its new ‘Cent Aspire’ scheme. Under this, any person who holds/opens a fixed deposit of Rs.20,000 and above under the ‘Cent Aspire Term Deposit’ scheme can avail of a free credit card (issued against the FD). This offer is aimed at customers of tier-two cities in semi-urban and rural areas, where a majority of the bank’s branches are located.
The credit card has a lower interest rate compared to other cards and the maximum credit limit offered is 80% of the fixed deposit amount (subject to an overall credit limit of Rs.4 lakhs). This scheme not only encourages savings but also provides secured credit to customers. It is a low-risk credit option extended by the bank since payment defaults are recovered from the amounts held as deposit.
Another attraction of this scheme is that it comes with a personal accident insurance of Rs.1 lakh, against death only.
This new plan comes on the back of the bank’s newly launched home loan called ‘Cent Home Double Plus’
19th November 2014