The Central Bank of India is one of the leading public sector banks which offers a wide range of banking products and services. One of their services includes Central Bank of India's Recurring Deposit (RD). RDs are a popular savings option, especially for people seeking a safe and steady return on their investments.
The interest rates on RDs are generally higher than those offered on regular savings accounts, making them an attractive investment choice for individuals seeking to grow their savings gradually. Central Bank Of India RD interest rates generally range from 3.50% p.a. to 7.25% p.a. for the general public. A minimum deposit of just Rs. 100 can grow your savings steadily over a tenure ranging from 6 months to 10 years.
If you open a Central Bank of India RD account, be aware of the penalty for missed monthly deposits.
The penalty amount depends on the length of your deposit term (whether it's over or under 60 months). It can range from Rs. 1.50 to Rs. 2.00 per Rs. 100 for each missed deposit. To avoid these charges, it's important to make your contributions consistently each month.
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Central Bank of India RD Interest Rates 2024
The Central Bank of India offers attractive RD schemes and the interest rates associated with these deposits are closely linked to the RBI's monetary policy decisions. RD interest rates can vary between banks and even within the Central Bank of India for different deposit periods and account types (regular vs. senior citizens).
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Central Bank of India RD Interest Rates For General Public
The table presented below will provide the Central Bank of India RD interest rates for the general public. Now, let’s see the varying interest rates for different tenures.
| Tenure | RD Interest Rates For General Public (In % p.a.) |
|---|---|
| 3 Months to 6 Months | 4.50% |
| 6 Months to 9 Months | 5.50% |
| 9 Months to 1 Year | 5.75% |
| 1 Year to 2 Years | 6.75% |
| 5 Years to 10 Years | 6.25% |
Central Bank of India RD Rates For Senior Citizens
The table presented below will provide the Central Bank of India RD interest rates for the senior citizens. Now, let’s take a look at the interest rates provided for various tenures.
| Tenure | RD Interest Rates For Senior Citizens (In % p.a.) |
|---|---|
| 3 Months to 6 Months | 5.00% |
| 6 Months to 9 Months | 6.00% |
| 9 Months to 1 Year | 6.25% |
| 1 Year to 2 Years | 7.25% |
| 5 Years to 10 Years | 6.75% |
Central Bank of India RD Calculator
You can calculate the maturity value of your Central Bank of India RD based on the deposit amount, tenure, and interest rate. Use an online RD calculator that can help you determine the maturity amount for your Central Bank of India RD investment.
| Invested Amount | : ₹1,000 |
| Total Interest | : ₹532 |
| Maturity Amount | : ₹12,532 |
These calculators typically ask for the following information:
- Monthly deposit amount: This is the fixed amount you plan to contribute every month throughout the tenure.
- Tenure: This is the total duration of your recurring deposit, in months or years.
- Interest rate: This is the rate offered by the bank on your recurring deposit. Interest rates on RDs can vary depending on the bank, deposit amount, and tenure.
Note: The interest rates and other details may change over time, so it's always recommended to cross-check with the bank's latest information before making any financial decisions.
Steps to Use RD Calculator
Here are the general steps to use an online RD (Recurring Deposit) calculator to calculate the estimated maturity amount and total interest earned of your Central Bank Of India RD.
- Find an online RD calculator.
- Enter the monthly deposit amount, tenure (in months/years), and interest rate.
- Select any additional options (if available).
- Calculate and View the maturity value, interest earned, and maturity date.
Features of Central Bank of India RD Interest Rate
The interest rates on RDs are subject to periodic revisions by the RBI, taking into account factors such as the prevailing economic conditions, inflation rates, and monetary policy objectives.
The table presented below outlines the key features of the Central Bank of India's RD interest rates.
| Feature | Description |
|---|---|
| Minimum Deposit | ₹100 |
| Tenure Range | 6 months to 10 years |
| Interest Rate Range | 3.50% p.a. to 7.25% p.a |
| Interest Compounding | Annually |
| Senior Citizen Benefit | Higher interest rates (up to 0.50% more) for senior citizens |
| TDS Deduction | Applicable as per income tax slabs |
| Maturity Instructions | Automatic renewal or payout on maturity |
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Note: Interest rates are subject to change. Always confirm the latest rates with the Central Bank of India directly. There may be other charges associated with RD accounts, such as penalties for missed installments.RD Interest Rates From Top Banks
Banks, being the primary providers of RD schemes, offer varying interest rates based on factors such as deposit amount, tenor, and prevailing market conditions. The table below presents a complete overview of the Recurring Deposit interest rates offered by some of the top banks in India.
| Bank | For General Public (% p.a) | For Senior Citizens (% p.a) |
|---|---|---|
| Axis Bank RD Interest Rates | 5.75% to 7.20% | 6.25% to 7.85% |
| SBI RD Interest Rates | 6.50% to 7.00% | 7.25% to 7.50% |
| ICICI RD Interest Rates | 4.75% to 7.20% | 5.25% to 7.75% |
| HDFC RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Yes Bank RD Interest Rates | 6.10% to 7.75% | 6.60% to 8.25% |
| Bandhan Bank RD Interest Rates | 4.50% to 7.85% | 5.25% to 8.35% |
| Karur Vysya Bank RD Interest Rates | 6.25% to 7.50% | 6.25% to 8.00% |
| Jammu and Kashmir Bank RD Interest Rates | 5.75% to 7.10% | 6.25% to 7.60% |
| Post Office RD Rate | 6.50% | 6.50% |
| City Union Bank RD Interest Rates | 6.25% to 7.00% | 6.50% to 7.50% |
| DBS Bank RD Interest Rates | 6.00% to 7.50% | 6.50% to 8.00% |
| Dhanalakshmi Bank RD Interest Rates | 6.50% to 7.25% | 6.50% to 7.75% |
| Kotak Mahindra Bank RD Interest Rates | 6.00% to 7.40% | 6.50% to 7.90% |
| Bank of Baroda RD Interest Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| Punjab National Bank RD Interest Rates | 6.00% to 7.25% | 6.50% to 7.75% |
| Bank of Maharashtra RD Interest Rates | 5.50% to 6.25% | 6.00% to 6.75% |
| South Indian Bank RD Interest Rates | 5.00% to 7.40% | 5.50% to 7.90% |
| Bank of India RD Interest Rates | 4.50% to 6.00% | 5.00% to 6.50% |
| Indian Bank RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank RD Interest Rates | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India RD Interest Rates | 5.75% to 6.50% | 6.25% to 7.00% |
| IDBI Bank RD Interest Rates | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank RD Interest Rates | 6.15% to 7.25% | 6.65% to 7.75% |
| Saraswat Bank RD Interest Rates | 7.00% to 7.50% | 7.50% to 8.00% |
| Karur Vysya Bank RD Interest Rates | 6.25% to 7.50% | 6.25% to 8.00% |
| TMB RD Interest Rates | 6.75% to 7.75% | 7.00% to 8.25% |
| Federal Bank RD Interest Rates | 5.75% to 7.50% | 6.25% to 8.00% |
| IndusInd Bank RD Interest Rates | 7.00% to 7.75% | 7.50% to 8.25% |
| Karnataka Bank RD Interest Rates | 5.80% to 7.40% | 6.20% to 7.90% |
| Jammu and Kashmir Bank RD Interest Rates | 5.75% to 7.10% | 6.25% to 7.60% |
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Note: The mentioned interest rates are subject to revision. To access the latest rates, visit the official website.Besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
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Central Bank of India RD Interest Calculation
Let's assume a monthly recurring deposit of ₹1,500 for a duration of 2 years with an annual interest rate of 6.75%, compounded annually.
To calculate the maturity value of a recurring deposit (RD) manually, we need to use the formula:
Maturity Value = Deposit × [((1 + r/100)^n - 1) / (r/100)] × (1 + r/100)
Where,
- Monthly deposit amount (P) = ₹1,500
- Interest rate (R) = 6.75% per year (compounded annually)
- Tenure (T) = 5 years
Number of months (N):
T * 12 = 5 years * 12 months/year = 60 months
Maturity amount:
We can use the Future Value of an Annuity formula to calculate the maturity amount (A):
A = P * [ (1 + R/12)^N - 1 ] / (R/12) + (P * N)
A = 1500 * [ (1 + 0.0675/12)^60 - 1 ] / (0.0675/12) + (1500 * 60)
A ≈ ₹106,616.78
Total interest earned:
Total interest (I) = Maturity amount (A) - Total deposit amount (P * N)
I = ₹106,616.78 - (₹1500 * 60)
I ≈ ₹10,616.78
Therefore, for a monthly recurring deposit of ₹1,500 at 6.75% annual interest compounded annually for 5 years, the total interest earned would be approximately ₹10,616.78 and the maturity amount would be approximately ₹106,616.78.
Note: This is an approximation, and the actual maturity amount may vary slightly depending on how the bank calculates interest on a daily or monthly basis.
Types of Central Bank Of India RD Schemes
People opt for Recurring Deposits because they want to save for various reasons and have different preferences when it comes to managing their money. For this, the Central Bank of India offers four main recurring deposit (RD) schemes to cater to different saving goals and preferences.
Cent Surakshit Samriddhi RD
- Cent Surakshit Samriddhi RD is the most basic RD scheme offered by the bank.
- It requires a minimum monthly deposit of ₹100 and offers a fixed interest rate for a chosen tenure ranging from 6 months to 10 years.
- This scheme is ideal for those who want a simple and secure way to save money with guaranteed returns.
Cent SwaShakti Flexi RD Scheme
- Cent SwaShakti Flexi RD Scheme provides more flexibility for depositors.
- It allows a minimum monthly deposit of ₹100 and also allows additional deposits along with the core monthly installment.
- The interest rate is calculated on the total deposit balance.
- This scheme is suitable for those who have an irregular income or want to save a lump sum occasionally.
Cent Lakhpati
- Cent Lakhpati scheme is designed to help you accumulate a lakh (₹100,000) or more.
- It offers a slightly higher interest rate compared to the standard RD scheme for a fixed tenure of 60, 84, or 120 months.
- This scheme is a good option for those who have a specific savings goal of ₹1 lakh or more.
Cent Millionaire
- Cent Millionaire scheme is targeted for long-term saving goals.
- It offers attractive interest rates for a tenure of up to 10 years.
- This scheme is suitable for those who are planning for a long-term financial goal such as retirement or a child's education.
Note: The specific features, interest rates, and terms and conditions may vary depending on the scheme and the bank's policies at the time of opening the account.
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Tax Benefits on Central Bank Of India RD Interest Rates
The interest earned on other RD schemes offered by the Central Bank of India may also be eligible for tax benefits under Section 80C of the Income Tax Act.
- Taxable Income: The interest earned on your RD is considered taxable income and needs to be included in your income tax return.
- Tax Deducted at Source (TDS): The bank deducts TDS (Tax Deducted at Source) on the interest income if it exceeds a certain limit in a financial year. Currently, the limit is ₹40,000 for everyone and ₹50,000 for senior citizens. The TDS rate is typically 10%, though it may change based on tax regulations.
Note: If your total income falls below the basic exemption limit for your age group, you may not have any tax liability even if you earn interest on your RD. Regardless of the TDS deducted, you should still include the total interest earned from your RD in your income tax return.
Steps to Open Central Bank Of India RD Account
Here are the steps to open a Recurring Deposit (RD) account with the Central Bank of India, both online and offline.
Open RD Account Online (Through Website)
- Step 1: Visit the official website of the Central Bank of India and go to the 'Internet Banking' section. Click on the 'New User Registration' option.
- Step 2: Complete the online registration process by providing the required personal and contact details.
- Step 3: Once registered, log in to your internet banking account.
- Step 4: Select the desired RD scheme and tenure.
- Step 5: Fill out the online RD account opening form with your personal, nominee, and initial deposit details.
- Step 6: Upload the required documents (identity proof, address proof, etc.) in the specified format & apply.
- Step 7: You will receive an acknowledgment and account number upon successful submission.
Open RD Account Offline (Through Bank)
- Step 1: Visit your nearest Central Bank of India branch with the required documents (identity proof, address proof, photographs, etc.).
- Step 2: Collect and fill out the RD account opening form available at the branch.
- Step 3: Specify the desired RD scheme, tenure, and initial deposit amount in the form.
- Step 4: Provide your personal details, nominee details, and other required information.
- Step 5: Submit the completed form along with the necessary documents to the bank official.
- Step 6: Make the initial deposit as per the scheme requirements.
- Step 7: The bank will process your application and issue an RD account number.
Note: For further details and up-to-date information, it's always recommended to consult a tax advisor or refer to the official website of the Income Tax Department of India.
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Eligibility Criteria to Open Central Bank of India RD Account
The Central Bank of India allows a wide range of individuals to open RD accounts. Here's a breakdown of the eligibility criteria.
- Resident Indians, NRIs, and PIOs are eligible.
- No specific age limit for regular RD accounts. Senior Citizen RD requires age 60 or above. Minor RD can be opened by a parent/guardian.
- Valid identity proof (Aadhaar, PAN, etc.) and address proof (utility bill, passport, etc.) are required.
- Applicants must make the minimum initial deposit as per the scheme.
- For Tax Saver RD, the applicant must have a taxable income.
- Option to nominate a nominee for the RD account.
- The bank may impose additional criteria based on internal policies.
Note: It's advisable to check with the bank for the latest eligibility requirements and documentation before applying for an RD account.
Documents Required to Open Central Bank of India RD Account
The specific documents required may vary depending on the account holder type. Here are some general requirements.
- Identity proof: Passport, Voter ID card, Driving License, PAN card, Aadhaar card (recommended)
- Address proof: Utility bills, bank statements, ration card (any one)
- Age proof: Birth certificate (for minors), Senior citizen card (for availing senior citizen benefits)
- Account opening form.
Central Bank of India RD Premature Withdrawal
The Central Bank of India allows premature withdrawal of funds from your RD account, but there will be a penalty involved.
Penalty: A penal interest rate is charged on the amount withdrawn prematurely. This penalty is a fixed rate and depends on the investment period:
- Up to 60 months: A flat penalty of Rs. 1.50 per Rs. 100 per month is charged.
- Over 60 months: A steeper penalty of Rs. 2.00 per Rs. 100 per month applies.
Interest calculation: The interest earned is calculated based on the deposit amount and the prevailing interest rate applicable on the date of deposit, for the period the money remained with the bank.
Note: Premature withdrawal can significantly reduce your overall earnings on the Recurring Deposit. The bank may have additional charges for account closure due to premature withdrawal.
Steps to Close Central Bank of India RD Account
Certain steps to close your Central Bank of India RD account are listed below. However, note that the Central Bank of India doesn't allow you to close an RD account entirely online. And you would be required to visit your nearest branch where your RD account is held to complete the procedure.
Here's a general process for closing your Central Bank of India RD account.
- Step 1: Visit the home branch where the RD account was opened.
- Step 2: Submit the RD account closure form and specify the reason.
- Step 3: Provide valid identity proof documents.
- Step 4: Surrender the original RD passbook/statement.
- Step 5: Clear any outstanding charges or premature closure penalties, if applicable.
- Step 6: Claim the maturity amount or premature closure proceeds.
- Step 7: Provide active bank account details for NEFT/RTGS transfer, if required.
- Step 8: Submit a request letter and indemnity bond if the passbook/statement is lost.
- Step 9: Wait for the bank to process the closure request.
- Step 10: Collect the closure proceeds from the branch after processing.
Note: Premature closure may attract penalties or reduced interest rates. Check with the branch for specific requirements and guidelines.
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Frequently Asked Questions
The minimum tenure for Central Bank of India RDs is 6 months and the maximum tenure is 10 years. There are also specific RD schemes that offer different tenures within this range.
Central Bank of India calculates interest on Recurring Deposits (RDs) daily and credits it semi-annually. The interest rate, deposit amount, and tenure are used to determine the maturity amount.
To open a recurring deposit (RD) account with the Central Bank of India, you'll need to provide documents for identity and address proof. This can include your Aadhaar card, passport, voter ID, or driving license.
Many people can open a recurring deposit (RD) account with the Central Bank of India, including individuals, minors with guardians, and even certain charitable organizations. Minors over 10 years old can even open their own RD account with some limitations.
Central Bank of India RD rates depend on tenure and senior citizen status. Rates range from 3.50% to 7.25% for the general public, with seniors typically getting 0.50% more.
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