Overview of 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.

Types of Central Bank Time Deposit Schemes

  • Fixed Deposit scheme
  • Money Multiplier Deposit Certificate (MMDC)
  • Monthly Interest Deposit Receipt (MIDR)
  • Quarterly Interest Deposit Receipt (QIDR)
  • Cent-555 scheme
  • Cent-777 scheme
  • Cent Uttam scheme
  • Cent Tax Saving Deposit scheme
  • Cent Aspire Deposit scheme
  • Cent Suraksha Deposit scheme
  • Central’s Flexi Yield Deposit Scheme

Features of Fixed Deposit scheme

  • Minimum deposit amount: Rs.100
  • Range of maturity: 7 days to 10 years
  • Interest calculated as Simple Interest
  • Half-yearly interest payout in March and September
  • Option for cumulative interest payment also available
  • Tax Deducted at Source (TDS) will be deducted from the interest income exceeding Rs.10,000 per annum
  • Facility for nomination available
  • If the FD returns are more than Rs.20,000, the amount is transferred to the savings account linked to your FD account or given as a Demand Deposit (DD).
  • If the returns are up to Rs.20,000, the returns can be received in cash.
  • On the date of maturity, the deposits can be renewed automatically.
  • Loans can be secured for against the deposit for up to 90% of the FD value.
  • Joint account with two adults or one minor with another adult
  • Maximum deposit amount for a minor: Rs.50,000

Features of Money Multiplier Deposit Certificate (MMDC)

  • The interest income gets added to the principal amount which gets reinvested
  • Minimum investment: Rs.100
  • Maturity period: 6 months to 10 years
  • You can apply for loan against the deposit.

Features of Monthly Interest Deposit (MIDR)

  • Minimum amount of deposit: Rs.5,000
  • Maturity period: 1 year to 10 years
  • Loans can be availed against the deposit
  • Monthly interest payout

Features of Quarterly Interest Deposit (QIDR)

  • Quarterly interest payment
  • Lower limit of deposit: Rs.5,000
  • Facility to secure loans against the deposit: Available
  • Maximum amount of deposit: Under Rs.1 crore
  • Rate of interest: 6.50% p.a.

Features of Cent-555 scheme

  • Maturity period: 555 days
  • Interest rate: 6.65% p.a.
  • Interest is compounded on a quarterly basis
  • Lower limit of deposit: Rs.1,000
  • Upper limit of deposit: Below Rs.1 crore
  • If a loan is secured against the deposit, you can prematurely withdraw from the FD account.

Features of Cent-777 scheme

  • Interest payout: Monthly/Quarterly/Half-yearly
  • Tenure: 777 days
  • Deposit range: Rs.1,000 to Rs.1 crore
  • FD rate: 6.45% p.a.
  • Provision for premature withdrawals

Features of Cent Uttam scheme

  • High liquidity
  • Flexibility to partially withdraw funds
  • Minimum deposit: Rs.5,000
  • Maturity period: 1 month to 10 days
  • A ‘Pass Book’ will be given to the depositor
  • Loans can be pledged against the Term Deposit.

Features of Cent Tax Saving Deposit scheme

  • Joint accounts allowed
  • You get tax benefits as per Section 80C of the Income Tax Act, 1961.
  • Lock-in tenure: 5 years
  • Deposit range: Rs.100 to Rs.1.50 lakh
  • Interest rate: 5.35% p.a.

Features of Cent Aspire Deposit scheme

  • This scheme is available in:
    • QIDR
    • MIDR
    • MMDC
  • Minimum investment: Rs.20,000
  • Tenure range: 1 year and above in multiples of 3 months up to 10 years
  • Option of auto renewal available
  • You have the option of nominating a beneficiary.

Features of Cent Suraksha Deposit scheme

  • The scheme has two variants:
    • Cent Suraksha Deposit (PMSBY)- Rs.177
    • Cent Suraksha Deposit Yojana (PMSBY/PMJJBY)- Rs.4,317
  • Yearly interest payout
  • Interest is compounded at quarterly intervals
  • Maturity period range: 5 years to 10 years
  • TDS is applied to the interest income
  • Interest rate: 5.35% p.a.
  • Special interest rates:
    • Senior Citizens: 0.50%
    • Senior Citizens who is a former employee of the bank: 1.50% p.a.
    • Current employee/ Former employee/ Spouse of a deceased employee: 1.00%
  • You can withdraw from the deposit prior to the maturity date.

Central’s Flexi Yield Deposit Scheme

  • Floating rate of interest higher than normal interest rate
  • Minimum deposit of Rs.50,000 and multiples of Rs.5,000 thereafter
  • Tenure range between 1 year and 10 years
  • Rate of interest prevailing on deposit date
  • Loans and advance against deposit can be availed
  • Payment before maturity can be availed with certain conditions

Premature withdrawal of the Central Bank Fixed Deposit

  • No penalty is levied for premature withdrawal of deposits under Rs.5 lakh
  • 1% penal interest is charged on premature encashment of FDs of Rs.5 lakh and above.

Interest rates of Central Bank FD scheme: Under Rs.2 crore

Tenure bracket Regular FD rates (per annum) Senior Citizens FD rates (per annum)
7 days to 15 days 3.40% 3.90%
15 days to 45 days 3.40% 3.90%
46 days to 90 days 3.90% 4.40%
91 days to 179 days 4.55% 5.05%
180 days to 364 days 4.80% 5.30%
1 year to less than 2 years 5.35% 5.85%
2 years to 10 years 5.35% 5.85%
555 days 5.35% 5.85%
777 days 5.35% 5.85%

*The Central Bank FD rates are subject to change as per the discretion of the bank. The rates given in the table are valid as of 30 May 2020.

Central Bank’s eligibility criteria to open an FD account

  • Indian Citizens
  • Hindu Undivided Family (HUF) member
  • Individuals who are visually impaired
  • Individuals who do have formal education
  • Charity organizations
  • Educational institutes
  • Firms in partnership
  • Traders and agents
  • Societies and clubs
  • Corporates

Documents needed to open a Central Bank FD account

ID proof (any one)
  • Aadhaar Card
  • Driver’s license
  • Permanent Account Number (PAN) card
  • Voter ID
  • ID card from an authorized employer
Residential proof (any one)
  • Electricity or Telephone bill
  • Salary receipt
  • Bonafide letter attested by your employer or government body
  • Aadhaar Card
Proof to determine age (only for senior citizens and minors)
  • Senior citizens (any one)
    • Voter ID
    • Pension slip
    • Driver’s license
    • Permanent Account Number (PAN) card
    • Document stating retirement from a company
  • Minors
    • Government-validated birth certificate
  • 2 color passport-size photographs of the applicant, if you are not an existing customer of the bank.

FAQs on Central Bank Time Deposit schemes

  1. What is the tenure range of Central Bank FD scheme?

    You can choose a maturity period between 7 days and 10 years.

  2. How to apply for a Central Bank Time Deposit scheme?

    You can either visit the nearest branch of Central Bank to submit your application along with the necessary documents or apply online.

  3. What is the minimum that I need to invest for a Central Bank FD/MID/MMDC/ QID scheme?

    You must deposit at least Rs.100 for a Central Bank FD/MMDC account and Rs.5,000 for MID/QID scheme.

  4. Are premature withdrawals allowed on Cent Tax Saving Deposit scheme?

    No, you cannot withdraw funds from the Tax Saving FD account before completing the 5-year lock-in period.

  5. Will TDS be applicable on Central FD schemes?

    Yes, if your net interest income is above Rs.10,000 p.a., TDS will be deducted. However, if the interest income is below the taxable limit, you can submit Form 15G/15H to the bank.

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