Central Bank of India RD Interest Rates 2019

Last Updated 02nd Jan 2019

Central Bank of India Interest Rate on RD, 2019

Tenure General Rates Senior Citizen Rates
180 days to 269 days 6.35% 6.85%
270 days to 364 days 6.40% 6.90%
1 year 1 day to 1 year 364 days 7.00% 7.50%
2 years to 2 years 364 days 6.70% 7.20%
3 years to 4 years 364 days 6.20% 6.70%
5 years to 10 years 6.20% 6.70%

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Central Bank of India RD Calculator
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Central Bank of India Recurring Deposit

  • Central Bank of India offers RD interest rates up to 7.00%
  • Interest on RD with Central Bank of India is compounded quarterly.
  • Central Bank of India accepts minimum deposits starting at Rs. 100.
  • For senior citizens Central Bank of India offers RD rate upto 7.50%.
Central Bank Recurring Deposit Interest Rates – Special Features
  • RD account can be opened in name of minor
  • Nomination facility is available
  • loan Facility is availabe up to 90 percent of your deposited amount
  • The deposit tenure ranges from 6 months to 120 months
  • Visit any Central Bank of India branch to avail this service
  • TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
  • Penalty on non payment of the periodic deposit is Rs. 2.00 per month per Rs. 100 in case deposit period is over 60 months and Rs. 1.50 per month per Rs. 100 in case deposit period is up to 60 months

Central Bank of India RD Account

Central Bank of India offers recurring deposit option to their customers to park their periodically generated surplus savings for a fixed tenure. A customer is required to make a deposit once into their RD account at the time of opening the account with the bank. The customer then makes periodic deposits and withdraws any money in the account during the tenure of the deposit.

Regular RD

  • RD account can be opened in name of minor
  • Nomination facility is available
  • The minimum tenure of this RD is 6 months
  • The minimum deposit to be made in this account is Rs. 100

Cent Swa Shakti Flexi

  • Deposit any amount as monthly installment, as per your choice. If surplus money is available at any point of time, deposit the same that month
  • Beside monthly core amount the depositor can also deposit additional fund
  • Beside monthly core amount the depositor can also deposit additional fund
  • Loan, OD and advances up to 90 percent of the deposit amount plus accrued interest
  • Interest is calculated on daily basis and will be credited every half yearly
  • The minimum tenure of this RD is 6 months
  • The minimum deposit to be made in this account is Rs. 100

Cent Lakhpati

  • Deposit your amount for up to 10 years with the maturity value of Rs. 1 Lakh plus
  • Deposit your amount for up to 10 years with the maturity value of Rs. 1 Lakh plus
  • The minimum tenure of this RD is 6 months
  • The minimum deposit to be made in this account is Rs. 100

Cent Millionaire

  • Deposit your amount for up to 10 years with the maturity value of Rs. 10 Lakhs plus
  • Deposit your amount for up to 10 years with the maturity value of Rs. 10 Lakhs plus
  • The minimum tenure of this RD is 6 months
  • The minimum deposit to be made in this account is Rs. 100

Central Bank of India Recurring Deposit Rates

There are some factors that affect Central Bank of India Recurring Deposit interest rates. These are as follows:

Policies Framed by RBI : The change in Cash Reserve Ratio (CRR) and repo rate as directed by the RBI affect the interest rate of all banking instruments including the recurring deposit.

Recession – In times of recession, RBI releases funds in the market and hence injecting liquidity in the market. As a result of high liquidity and low credit demand, banks reduce the rates on RD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Hence, RD rates tend to be higher in a period of rising inflation.

Current State of Economy – In a booming economy, people take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through recurring deposits.

Central Bank of India RD Interest Calculator

RD maturity amount that you will get depends on the following three parameters

  • Deposit amount – This is the initial amount deposited by a customer in Central Bank of India. Higher interest rate might be offered on larger deposits. Central Bank of India offers deposit amount starting at Rs. 100.
  • Rate of Interest- Central Bank of India offers a higher rate of interest on recurring deposits of longer tenure and lower interest rate on deposits held for a shorter period. Highest interest rate offered by SBI is 7.00% for deposit amount.
  • Period of deposit- Bank offers low interest rate for short tenure RDs and higher interest rate for long tenure RDs.

Duration of Recurring Deposits with Central Bank of India

You can open a Recurring Deposit account with Central Bank of India Bank for a minimum tenure of 6 months which can go up to maximum tenure of 120 months.

Premature withdrawal of RD with Central Bank of India

Premature withdrawal of RD with Central Bank of India Bank is allowed. Central Bank of India Bank may charge a nominal amount of penalty as per their banking norms.
Penalty on non payment of the periodic deposit is Rs. 2.00 per month per Rs. 100 in case deposit period is over 60 months and Rs. 1.50 per month per Rs. 100 in case deposit period is up to 60 months
However, Partial withdrawal of RD account is not allowed.

Penalty for delayed installment of RD with Central Bank of India

Bank may give you grace of some days if you delay the payment beyond the due date. In case you do not pay your installment after due date, Central Bank of India Bank will charge a penalty as per their norms.
Penalty on non payment of the periodic deposit is Rs. 2.00 per month per Rs. 100 in case deposit period is over 60 months and Rs. 1.50 per month per Rs. 100 in case deposit period is up to 60 months

Illustration: Mr. A opens a RD account for tenure of 1 year with periodic deposits of Rs. 5,000 per month at an interest rate of 7.00%. In this case, the maturity amount at the end of 1 year will be Rs. 62,311 and includes the collected principal and total interest earned on the principal amount during the period at Rs. 2,311. Similarly, you can calculate the interest and maturity amount for higher tenures by using RD calculator.

Frequently Asked Questions

What is the eligibility for opening an RD account?

Indian residents and HUF (Hindu Undivided Families) can open RD account. NRIs can also open the RD account through NRO and NRE accounts.
Banks provide RD scheme for minors as well, under the guardianship of parents to supervise their finances.

What is the general tenure/duration of Central Bank of India Recurring Deposits?

Central Bank of India RD can be opened for minimum 6 months to maximum tenure of 120 months.

Is premature withdrawal allowed in RD accounts?

The amount can only be withdrawn on maturity. In case of emergency you can break your RD before maturity, but after that your account will be closed. Banks may deduct 1 or 2 percent penalty from the interest accrued on your RD amount for the period for which the amount was with the bank. In Central Bank of India, Penalty on non payment of the periodic deposit is Rs. 2.00 per month per Rs. 100 in case deposit period is over 60 months and Rs. 1.50 per month per Rs. 100 in case deposit period is up to 60 months.
The minimum lock in period is 3 months and if the depositor request a premature withdrawal before that, he earns zero interest and only the principal amount will be refunded to him. Apart from cancelled interest, any incentives offered are also withdrawn.

Is partial withdrawal of RD accounts allowed by Central Bank of India?

Partial withdrawal of recurring deposit is not allowed by Central Bank of India. However, some banks offer the facility to obtain Loan or Overdraft by keeping your RD as collateral. On the other hand, premature withdrawals are allowed by post offices if you have an RD account with them for at least a year. The withdrawn amount is considered a loan, which has to be paid in lump sum.
Premature Closure is allowed, but with some penalty.

What exactly happens on maturity of RD account?

On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your RD amount in fixed deposits after maturity.

Is nomination facility available in Central Bank of India RD account?

Nomination facility is available in Central Bank of India recurring deposits. Whether you open it in single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.

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