Central Bank of India Senior Citizen FD Rates 2025

What is a Central Bank of India Senior Citizen FD?

A Senior Citizen Fixed Deposit (FD) from the Central Bank of India is a savings scheme designed for individuals aged 60 and above. Super senior citizens (80 years and above) get 0.75% extra, while ex-staff senior citizens and ex-staff super senior citizens receive 1.50% and 1.75% respectively, and the FD rates will depend upon the tenure and category you fall into.

Key Benefits of Central Bank of India Senior Citizen FD

The following are some of the important benefits of the Central Bank of India senior citizen FD:

• Flexible Investment Amount: Central Bank of India fixed deposits for senior citizens start from as low as ₹100, with no maximum limit, making them accessible for both small and large investors.
• Auto-Renewal Facility: Central Bank of India offers an auto-renewal option for senior citizen FDs, allowing deposits to be automatically renewed at prevailing interest rates upon maturity. Investors can also provide specific instructions for renewal duration and amount, minimising the need to visit the branch.
• Premature Withdrawal: Senior citizens can withdraw their fixed deposits before maturity if needed. However, a penalty of 1% on the applicable interest rate will be deducted if the account is closed early, after 7 days. No interest is paid if the deposit is withdrawn within 7 days of opening.
• Multiple Payout Options: The Central Bank of India allows senior citizens to choose from monthly, quarterly, half-yearly, or cumulative interest payout schedules.
• Sweep-in and Sweep-out Facility: Senior citizens can link their savings accounts with FD accounts using the sweep-in facility for higher returns and the sweep-out facility to ensure funds are available when needed.

Central Bank of India FD Interest Rates for Senior Citizens

Here’s a quick look at the Central Bank of India senior citizen FD interest rates across different deposit tenures:

Central Bank of India FD Interest Rates for Senior Citizens: Deposits Less Than ₹3 Crore

*Central Bank of India senior citizens' FD interest rates w.e.f. Aug 10, 2025

Central Bank of India Senior Citizen FD Rates for Deposits from ₹3 Crore to ₹10 Crore

*Central Bank of India senior citizens' FD interest rates w.e.f. Aug 10, 2025

How to Open a Central Bank of India Senior Citizen FD?

The Central Bank of India allows senior citizens to open Fixed Deposits (FDs) through both online and offline channels. Below is a step-by-step guide for each method:

1. Online Method

   • Login: Visit the Central Bank of India Net Banking portal and log in to your account.
   • Navigate to FD Section: Go to “Fixed Deposit” or “Term Deposit” under the available services.
   • Select Deposit Details
   • Enter the deposit amount.
   • Choose the tenure (7 days to 10 years)
   • Select interest payout frequency (monthly/quarterly/cumulative)
   • Submit & Fund FD: Confirm details and transfer funds directly from your linked bank account.
   • Receive Confirmation: Once processed, your FD details will be visible in your internet or mobile banking account.

2. Offline Method

   • Visit a Nearby Branch: Use the “Branch Locator” on the Central Bank of India website to find your nearest branch.
   • Carry Required Documents
     • PAN Card
     • Address proof (Aadhaar, Passport, DL, or Voter ID)
     • Passport-sized photo
     • Form 15H (if applicable, to avoid TDS)
   • Fill Application Form: Request the FD application form, fill it out, and choose tenure and interest payout mode.
   • Deposit Funds: Pay the deposit amount via cash, cheque, or bank transfer.
   • Collect FD Receipt: You’ll receive an FD certificate or deposit advice with full details once your deposit is processed.

Taxation on Central Bank of India Senior Citizen FD Interest

Interest earned on Central Bank of India Senior Citizen Fixed Deposits is taxable as "Income from Other Sources." Here's a detailed breakdown of the tax rules:

• Tax Deducted at Source (TDS): TDS is applicable only if the total annual interest from a bank exceeds ₹1,00,000 for senior citizens. The TDS rate is 10% if a PAN card is provided; otherwise, it is 20%.
• Avoiding TDS: To prevent the bank from deducting TDS, senior citizens can submit Form 15H to the Central Bank of India. This is a self-declaration form stating that their total income for the financial year is below the basic exemption limit, resulting in zero tax liability.
• Deduction under Section 80TTB: Senior citizens can claim a deduction of up to ₹50,000 on interest income from all their deposits (including savings accounts, fixed deposits, and recurring deposits) in banks and post offices. This deduction is claimed when filing the Income Tax Return (ITR) and helps in reducing the overall taxable income.
• Tax-Saving FDs: Tax-saving FDs offered by the Central Bank of India qualify for a deduction of up to ₹1,50,000 on the principal amount invested under Section 80C of the Income Tax Act. However, it is important to note that the interest earned on these FDs is still fully taxable as per the individual's income tax slab.

Key Takeaways

Central Bank of India senior citizen FD rates current rates for seniors ranging from 4.00% up to 7.20% per annum, which offer 0.50% higher interest rates than regular FDs, depending on the chosen tenure and scheme. Senior citizens can open an FD online or at any Central Bank of India branch, select tenures from 7 days to 10 years, and choose multiple payout options, an auto-renewal facility, premature withdrawal, and an auto-sweep facility. The bank also allows loans or overdrafts up to 90% of the FD amount and allows a tax deduction up to 1.5 lakh under Section 80C of the Income Tax Act.