Fixed Deposits: In the realm of savings, fixed deposits (FDs) stand as a beacon of security and guaranteed returns. The recent announcement from the Central Bank of India, a prominent public sector lender with a history spanning 113 years, is a significant development for investors eyeing fixed deposits. The bank has made a strategic change in interest rates for FDs under ₹2 crore, marking a pivotal moment for both regular and senior citizen investors.

Understanding the Revised Interest Rates

For General Customers: A Range of Options

The adjustment in interest rates by the Central Bank of India now offers general customers an interest range from 3.5% to 7% for fixed deposits ranging from 7 days to 10 years. This variation provides flexibility and caters to diverse financial planning needs and timelines.

Senior Citizens: An Edge in Returns

In a move that acknowledges the financial needs of the elderly, the bank now offers senior citizens an enhanced interest rate ranging from 4% to 7.50% for the same time periods. This boost is a nod to the importance of securing better returns for those in their retirement years.

The Timeline and Impact of New Rates

A New Year, New Rates

These revised interest rates have been in effect since January 10, 2024. The timing aligns with the new year, offering a fresh start for investors and savers to realign their financial strategies.

Detailed Breakdown of FD Interest Rates

Short-Term Deposits: A Closer Look

• For FDs maturing between 7 to 14 days, the bank now offers a 3.5% interest rate.
• Deposits with a maturity period of 15 to 45 days will earn 3.75%.
• For those choosing 46 to 59 days, the interest rate is set at 4.50%.
• Deposits maturing between 60 to 90 days will benefit from a 4.75% interest rate.

Medium-Term Deposits: Balancing Time and Returns

• Fixed deposits with a maturity period of 91 to 179 days will see an interest rate of 5.50%.
• For those opting for 180 to 270 days, the bank offers a 6% return.
• A slightly longer commitment of 271 to 364 days guarantees a 6.25% return.

Long-Term Investment Strategies

• The bank provides a 6.75% interest rate for deposits maturing between 1 to less than 2 years.
• For those looking at a 2 to 3-year maturity period, the interest rate peaks at 7.00%.
• Deposits maturing between 3 to less than 5 years will see a 6.50% interest rate.
• Finally, for the long-haul investors, FDs maturing between 5 to 10 years will earn a 6.25% interest rate.