Overview of Central Bank of India Fixed Deposit
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.
Central Bank of India Fixed Deposit
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.
Eligibility criteria for opening Central Bank of India fixed deposit
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.
Different fixed deposit schemes from Central Bank of India
- Cent Benefit Deposit: This is an exclusive scheme from the Central Bank of India wherein an interest rate of 6.50% is applicable on amounts exceeding ₹ 1 crore, and for tenures ranging from 28 days to 179 days. Premature withdrawal after 28 days is allowed at no penal interests. Senior citizens are not given additional interest rate for this plan.
- Money Multiplier Deposit Certificate (MMDC): This is a cumulative (compounded) interest scheme where the interests you earn are automatically credited to the fixed deposit amount so that you can earn more interest in the next cycle. Tenures are available from 6 months to 120 months, and deposits start from ₹ 100 (in multiples of ₹ 100 thereon).
- Double Deposit Scheme: This scheme comes under the MMDC plans, and provides 8.75% interest rate on deposits below ₹ 1 crore.
- Monthly/Quarterly Interest Deposit Receipt (MIDR/QIDR): MIDR provides cumulative monthly interests on your fixed deposit, without affecting the base amount deposited by you. QIDR is similar to MIDR except that interests are paid out at every 3 months interval.
- Cent Tax Saving Deposit: This scheme is applicable for individuals or an HUF who are tax payees with Permanent Account Numbers (PAN). Deposits are accepted up to ₹ 1.5 lakhs per year, and tax savings may be availed for the same amount. It is to be noted that TDS will still be applicable on interests earned from the Tax Saving Deposit account.
- Cent Uttam Scheme: This scheme has been designed to provide high interest rates as well as liquidity to customers. In this scheme, customers are allowed to withdraw ‘units’ of their deposit when they need liquidity. This withdrawal does not affect the remaining amount, which will continue to attract the same interest rate till maturity. A total of 10 such ‘unit withdrawals’ are allowed throughout the fixed deposit tenure.
- Cent Aspire: This scheme is available under MMDC, MIDR, and QIDR schemes as described above. Cent Aspire fixed deposit holders are given an Aspire Platinum credit card against the account. This credit card is valid for three years and is made available to customers without any documentation or background verification. The limit of this card is ₹ 4 lakhs or 80% of deposit amount, whichever is lower.
Minimum/maximum amounts for opening Central Bank of India fixed deposit
- Cent Benefit Deposit: ₹ 1 crore minimum to avail 6.50% p.a. interest rate.
- Money Multiplier Deposit Certificate (MMDC): Minimum ₹ 100.
- Double Deposit Scheme: Minimum ₹ 10,000 (Metro and urban) and ₹ 5,000 (Rural and semi-urban). Maximum ₹ 1 crore.
- Monthly/Quarterly Interest Deposit Receipt (MIDR/QIDR): Minimum ₹ 5,000 (increasing in multiples of ₹ 1,000).
- Cent Tax Saving Deposit: Minimum ₹ 100, maximum ₹ 1.5 lakhs (in one year).
- Cent Uttam Scheme: Minimum ₹ 5,000 (increasing in multiples of ₹ 1,000).
- Cent Aspire: Minimum ₹ 20,000 (increasing in multiples of ₹ 1,000). No upper ceiling.
Minimum/maximum tenure for fixed deposit schemes
- Cent Benefit Deposit: 28 days to 179 days.
- Money Multiplier Deposit Certificate (MMDC): 6 months to 120 months.
- Monthly/Quarterly Interest Deposit Receipt (MIDR/QIDR): 12 months to 120 months.
- Cent Tax Saving Deposit: Fixed tenure of 5 years.
- Cent Uttam Scheme: 1 month to 120 months.
- Cent Aspire: 1 year to 10 years (in multiples of 3 months).
Procedure for opening CBI FD account
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.
Interest rates on various Central Bank of India FD products
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%.
Tax saver deposit scheme from CBI
The Central Bank of India has a special Tax Saving Deposit scheme as explained in the section titled ‘Different FD schemes from CBI’.
TDS on fixed deposits
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.
Loan availability against FD accounts
Yes, loans can be availed against Central Bank of India fixed deposits up to a maximum of 90% of the deposit amount.
Credit card availability against FD accounts
Platinum micro-chip embedded credit cards are available for all customers falling under Cent Aspire scheme as described in above sections.
Special rates and schemes for senior citizens
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.
What are the terms for NRI fixed deposits?
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.
What are the terms for premature withdrawal?
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.
News About Central Bank of India Fixed Deposit
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