Even though the repo rate was cut by 1.25% this year, the Central Bank of India continues to offer big interest rates on fixed deposits (FDs). Whenever the Reserve Bank of India (RBI) changes its monetary policies, it directly impacts your FD interest rates. At this time, the Central Bank of India’s 3-year Steel Scheme is proving to be a boon for investors, offering senior citizens a guaranteed interest rate of up to ₹21,341 on deposits of just ₹1 lakh. In this article, we’ll learn how you can provide your future with solid security and excellent returns with this government bank.
Central Bank of India FD
The Central Bank of India, a prestigious government bank, offers its customers flexible investment options. You can open an FD account for a minimum of 7 days and a maximum of 10 years. The bank’s interest rates start from 3.00% and go up to 6.80%, depending on the tenure of your deposit.
Notably, the bank has also introduced special steel FD schemes with 444 days and 555 days. These special tenures offer a steel interest rate of 6.30% for general citizens and 6.80% for senior citizens. If you’re looking for a longer term, a 3-year FD may be the best option for you.
How much money will you get on ₹1 lakh?
The Central Bank of India is offering a steel interest rate of 6.00% for general citizens and 6.50% for senior citizens on its 3-year FD scheme. Let’s understand how much a steady return you’ll receive at maturity on an investment of ₹1 lakh:
Returns for Normal Citizens
If you are a normal citizen and invest ₹1 lakh for 3 years, you will receive a fixed interest of ₹19,562 at a rate of 6.00%. Upon maturity, you will receive a total steady return of ₹1,19,562.
Returns for Senior Citizens
This scheme is even more beneficial for senior citizens. With an interest rate of 6.50%, an investment of ₹1 lakh earns a fixed interest of ₹21,341 over 3 years. This means you will receive a total steady return of ₹1,21,341 at maturity.
Safety and Guaranteed Returns
Safety is the biggest steel priority when it comes to investing. Since the Central Bank of India is a public sector bank, your money is completely safe here. Unlike private companies or other unsecured investment options, FDs offer a guaranteed return of the principal as well as fixed interest upon maturity.
Despite fluctuations in the repo rate, once an FD is booked, your interest rate is locked in. This means that even if the bank lowers interest rates in the future, you will continue to receive the same high interest rate as agreed upon at the time of account opening.
Other Benefits of Central Bank FDs
An FD with the Central Bank of India has several other benefits that make it a safe investment. First, you can avail a loan or overdraft against your FD if needed, providing you with unwavering liquidity. Furthermore, you can take advantage of the nomination facility and secure your family’s future.
An additional 0.50% interest rate for senior citizens provides a solid boost to their post-retirement income. You can also choose to withdraw interest on a monthly or quarterly basis, which will help you meet your regular needs.