The Central Bank of India is among the leading nationalized banks in the country. It offers a wide range of financial services to its customers, among which is a fixed deposit scheme.
Fixed deposits are some of the safest investment instruments in India. As an investment option, FD is well suited for investors with a low-risk appetite.
Central Bank of India fixed deposit calculator is a useful tool available online that can help investors assess their returns from FD investments. To use this tool, one needs to enter the details regarding investment principal, interest rate, tenure and interest payout frequency. Such a tool reduces time consumption for FD calculation significantly.
At first glance, such a calculator may seem to have only one function. However, the benefits of using a Central Bank fixed deposit calculator are manifold. These include –
Learning about the benefits of the CBI FD calculator is just the first step toward responsible investment. One should also take the time to assess the interest rates from such deposits, and input values according to the tenure and corresponding FD rate for accurate results.
Before an investor can use a Central Bank of India FD calculator effectively, he/she needs to understand the various rates and maturity terms. The table below should help in this regard.
|Tenure||General Citizens FD Rates||
Senior Citizen FD Rates
|7 days – 14 days||2.75%||3.25%|
|15 days – 30 days||2.90%||3.40%|
|31 days – 45 days||2.90%||3.40%|
|46 days – 59 days||3.25%||3.75%|
|60 days – 90 days||3.25%||3.75%|
|91 days – 179 days||3.90%||4.40%|
|180 days – 270 days||4.25%||4.75%|
|271 days – 364 days||4.25%||4.75%|
|1 year – 1 year 364 days||4.90%||5.40%|
|2 years – 2 years 364 days||5.00%||5.50%|
|3 years – 4 years 364 days||5.10%||5.60%|
|5 years – 10 years||5.10%||5.60%|
Users need to enter four primary details to calculate FD returns through this online tool. The first is the principal or the total investment sum (P). Next, they must determine a specific tenure (t) and enter the same in the calculator’s specified field. Picking the term will help determine the rate of interest (r), which they also need to enter. The last parameter is the frequency of interest computation (n).
The formula for determining FD maturity amount is –
A = P (1+r/n) ^ n x t
Individuals can also refer to the following example to remove any confusion regarding this equation.
Example of FD Calculation –
Raj is a 22-year old employee, looking to invest Rs.2.5 (P) lakh in a Central Bank of India FD for 6 years (t). The interest rate on this FD, as per the table above is 5.65% (r) per annum. His frequency of interest computation is quarterly (n=4). From this information, one can determine Raj’s return on investment.
A = 250000 (1+0.0565/4) ^ 4 x 6
A = Rs.3,50,055
Therefore, the return on investment for Raj is given by I = A – P
Or, Rs.3,50,055 – Rs.2,50,000, which is equal to Rs.1,00,055.
A CBI FD calculator can compute the same within a few seconds. Thus, investors do not need to devote considerable time to these calculations.
As the formula above indicates, each parameter used in this calculation plays a crucial role in determining profitability. Here is a complete breakdown of how each factor influences outcomes –
At any rate, FD calculator CBI is crucial to assess the influence of each of these factors on a fixed deposit. Further, these tools are available online, ensuring accessibility to prospective investors.
Ques. What is the tenure ranges for Central Bank FD?
Ans. The tenure for CBI FD ranges from 7 days to 10 years
Ques. What is the minimum amount required to open an FD account with Central Bank?
Ans. The minimum deposit amount for Central Bank FD is Rs. 5000
Ques. How does the FD calculator of Central Bank work?
Ans. The FD calculator works by accepting the correct values of the investment amount, interest rate and tenure. Once the values are entered correctly, it shows the maturity value along with total interest.
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