Special FD Scheme: Special Fixed Deposit (FD) Schemes can be a more advantageous investment choice compared to standard fixed deposits, as banks tend to provide higher returns in a shorter timeframe through these specialized offerings. The Central Bank of India, a public sector bank, is currently promoting a unique term deposit scheme that offers returns exceeding 7%. Additionally, senior citizens are entitled to an extra 0.50% interest rate.
This special FD scheme is from CBI
This particular FD scheme from the Central Bank of India is known as the “St. Garima Fixed Deposit Scheme.” It is accessible to all customer categories, including Non-Resident Indians (NRIs). The scheme allows customers to choose between monthly, interval, or cumulative interest payments. The term of this scheme is set at 777 days, with a minimum investment of Rs 10,000 and a maximum limit of Rs 10 crore. For general customers, the interest rate offered is 7.15%, while senior citizens benefit from an additional 0.50%, resulting in a total interest rate of 7.65%. However, this additional interest does not apply to NRIs.
In terms of premature withdrawals, a penalty of 1% is imposed regardless of the FD amount. If the FD is closed before one year, no interest will be paid. Conversely, if the scheme is terminated after one year but before maturity, a penalty interest of 1% will be deducted. It is important to note that customers who have taken out a loan against their deposit are not permitted to withdraw prematurely. The bank does, however, offer a loan or overdraft facility of up to 90% of the deposit amount.
The interest rate is set at 1% per annum above the prevailing floating interest rate. Customers can take advantage of this scheme via online platforms, net banking, or mobile banking. Additionally, accounts can be opened by visiting the nearest bank branch.