Central Bank of India offers its customers 4 recurring deposit schemes. One can enjoy the benefits of Central Bank of India RD interest rates by opening an RD account by choosing any one of the schemes. The minimum deposit required to open an RD account in this bank starts from as low as Rs. 100. The deposit tenure ranges from 6 months to 120 months (10 years). Senior citizens get to enjoy an extra 0.50% interest rate over the regular rates.
In this article
- Central Bank of India RD Interest Rates 2021
- Central Bank of India Recurring Deposit Interest Rates- Special Features
- Types of Central Bank of India RD Schemes
- Premature Withdrawal of Central Bank RD – Terms and Conditions
- How to Calculate Central bank of India RD Interest?
- Eligibility Criteria for Opening an RD with CBI
- Documents Needed to Open Central Bank of India RD Account
- Central Bank of India RD Calculator
- How to Open an RD with Central Bank of India?
- Central Bank of India – Frequently Asked Questions
Central Bank of India RD Interest Rates 2021
|Tenure||RD Rates for General Citizens||RD Rates for Senior Citizens|
|180 days – 269 days||6.35%||6.85%|
|270 days – 364 days||6.40%||6.90%|
|1 year 1 day – 1 year 364 days||7.00%||7.50%|
|2 years – 2 years 364 days||6.70%||7.20%|
|3 years – 4 years 364 days||6.20%||6.70%|
|5 years – 10 years||6.20%||6.70%|
Central Bank of India Recurring Deposit Interest Rates- Special Features
- Central Bank of India offers interest rates up to 7.00% for general citizens and 7.50% for senior citizens.
- Interest on RD has compounded annually in Central Bank
- The minimum deposit amount needed to open an RD account starts from as low as Rs. 100
- Minors can also open an RD account under the guardianship of their parents
- One can take a loan against the deposit amount; loans up to 90% of the deposit amount can be availed
Types of Central Bank of India RD Schemes
Central Bank of India offers 4 types of recurring deposit schemes to cater to different people with varying needs. Let’s have a look at these schemes:
Recurring Deposit Scheme: This scheme is specifically designed for people with regular income. One of the primary reasons which make this scheme stand out is any minor above 10 years of age who can read and write can open this account. However, the monthly deposit is restricted to a maximum of Rs. 500 and the maximum maturity value should not exceed Rs. 50,000. Moreover, it offers additional rates of interest which are as follows:
Central Bank of India RD Rates
Senior Citizens: Extra 0.5% p.a.
Staff or Ex-staff widow:Extra 1% p.a.
Ex-staff + Senior Citizen: 1.5% p.a.
Cent Swa-Shakti Flexi Recurring Deposit Scheme: This RD account can be opened with a minimum deposit amount of Rs. 100. Minors below 10 years of age can apply jointly with their guardians for this scheme. The attractive point of this scheme is, other than the core amount, you can also deposit additional funds. The duration of the tenure starts from 6 months to 10 years. Also, the bank doesn’t charge any penalty on delayed installment or premature withdrawal.
Cent Lakhpati: It is a new scheme by the Central bank of India under which one can earn an interest of 6.55% p.a. on the deposited amount. The tenure of this scheme ranges from 1 year to 10 years.
Cent Millionaire: Under this RD scheme, one can enjoy attractive interest rates for a period of up to 10 years.
Note: TDS will be applicable to whatever interest you earn.
Premature Withdrawal of Central Bank RD – Terms and Conditions
Penalty applicable for premature withdrawal of the accumulated sum will be determined according to the applicable clauses.
For some investments, a penal sum is charged in case of delayed payment towards the recurring deposit. A flat rate of Rs.1.50 per Rs.100 per month is charged if the investment period is up to 60 months, and Rs.2.00 per Rs.100 per month is charged if the investment tenor is over 60 months.
How to Calculate Central bank of India RD Interest?
The interest on CBI Recurring Deposit can be calculated with the formula:
A= P x (1+R/N) ^ (Nt)
- A = Amount on maturity
- P = Installment amount
- N = Number of times the interest is compounded.
- R = Interest
- t = tenure
For example, Mr. Ashok, who lives in Madhya Pradesh and is below 60 years of age, opens an RD account with the Central Bank of India with a deposit of Rs 5000 for 5 years and the applicable interest rate for him is 6.5%. Hence, upon maturity, his total interest amount will be Rs. 54,957, and his total maturity amount will be Rs Rs. 3,54,957.
Eligibility Criteria for Opening an RD with CBI
Customers need to fulfil certain eligibility requirements to open a recurring deposit with the Central Bank of India, as enumerated below –
- Any Indian resident can opt for an RD in his or her name. Individuals can also opt for joint recurring deposits if required.
- Minors are eligible to open an RD with their legal guardians. Minors over the age of 10 (who can read and write) are eligible to operate the account personally. In this case, the maximum monthly instalment should not exceed Rs.500, and the maturity sum should not exceed Rs.50,000.
- Any charitable and educational foundations that do not operate or conduct any business of commercial nature are also eligible to avail RD scheme in the Central Bank of India.
- Hindu Undivided Family, differently-abled individuals and persons with special needs are also eligible to open a recurring deposit.
- Private traders, agents, professional partnership firms, society, corporate bodies, company clubs, merchants, etc. are also eligible to open a recurring deposit.
Documents Needed to Open Central Bank of India RD Account
- PAN card
- Voter ID card
- Driving License
- Government ID card
- Photo ration card
- A senior citizen ID card
- Telephone bill
- Electricity bill
- Bank statement with cheque
- Certificate /ID card issued by the post office
Only senior citizens and minors applying for the Central Bank of India RD scheme need to present their age proof. Individuals can submit any of the following documents.
- Voter ID Card.
- Birth certificate.
- Driving License.
- Certificate for discharge from service.
- Beneficiaries from pension plans can also submit their PPO.
Central Bank of India RD Calculator
If at any point in time, you want to check how much will be your maturity amount at the end of the tenure, you can take the help of the online Central Bank of India RD calculator. The process is very simple; you just have to fill in the basic details of your RD account such as the amount, tenure, and rate of interest.
Delayed Installment of Central Bank of India RD account
The bank can help you by providing some extra time period in case you miss to make the payment beyond the due date due to some reasons. However, frequent irregular payments will not be accepted by the bank and a nominal amount penalty will be levied by the bank as per its banking norms.
How to Open an RD with Central Bank of India?
CBI’s existing customers can open an account online with the help of Internet Banking. All they need is an active internet banking account in which they have to log in and open an RD account linked to the savings/current account. Those who don’t have an account with the Central Bank of India can visit the nearest CBI branch to open an account. Remember, to carry the required documents as mentioned on this page.
Central Bank of India – Frequently Asked Questions
Ques. What are the clauses related to payment of the instalments?
Ans. Instalment made towards the Central Bank of India recurring deposit can be made on any day before the due date of every month. Customers will be issued a special passbook, carrying all details like the name and deposit account number, CIF number, instalment amount, investment tenor, deposit date, interest rate, and total maturity value.
Ques. Can one avail automatic deposit facility?
Ans. Customers can provide standing instructions to banks to automatically transfer the monthly instalments from their bank account to the RD account without any additional fees.
Ques. What happens upon maturity of an RD scheme?
Ans. Upon maturity, customers can receive a maximum of Rs.20,000 in cash. Any additional sum is credited to the customer’s account or given out as Demand Draft.
Ques. Is there any renewal facility available?
Ans. Customers can opt to reinvest the sum accumulated in the RD account in the Central Bank of India after the maturity period. Central Bank allows reinvestment in any of the other Term Deposits available. Customers will enjoy the present applicable rate of interest for that scheme, or the rate applicable for the RD account, whichever is less.
Ques. Is there any clause associated with the deposit amount?
Ans. A minimum of Rs. 100 every month has to be deposited in an RD. Investors can put in any sum in the multiples of Rs. 50.
Ques. Is TDS applicable on RD?
Ans. TDS at 10% is applicable to the interest earnings. In case an individual fails to provide his/her PAn details, tax is deducted at 20% of the total earnings.
Ques. Can an investor redeem their RD before the end of the term?
Ans. Premature withdrawal is available against a penalty rate. The total interest will be calculated based on the rate applicable on the date of the deposit, till the period it was with the bank.
Ques. What is the applicable interest rate on RD?
Ans. The interest rate is similar to the rates applicable for fixed deposits.
Ques. Is an internet banking facility available on recurring deposits?
Ans. Net banking facility is available with the Central Bank of India recurring deposit scheme.
Ques. What documents will be provided against a recurring deposit?
Ans. An RD passbook will be provided to customers against their investment.
Ques. Is RD worth investing in?
Ans. Indeed, Recurring deposits are one of the best ways to save a substantial amount of money while saving a small part of your earnings monthly. Keep putting your money in the schemes offered by the bank and enjoy attractive Central Bank of India RD interest rates. However, if wealth creation is your long term financial goal, you can also look for other investment vehicles like mutual funds, fixed deposits, stocks, and bonds, among others.