Central Bank Fixed Deposit: Fixed Deposit or FD is considered among the safest investment options, hence many people prefer to invest in FD schemes. In most of the banks, senior citizens get 0.5 per cent extra interest on their deposits. 

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In times of financial instability and constantly shifting markets, FDs stand out as a sign of stability and provide a reliable means to grow part of your hard-earned money.

Now, let's know about a Central Bank term deposit scheme which provides 8.05 per cent interest to invest money for around 777 days. This scheme's name is 'Cent Garima Term Deposit Scheme'.

Central Bank Cent Garima Term Deposit Scheme: interest payment

This is a term deposit with the option of interest payments at monthly, quarterly intervals, or cumulative kind.

Central Bank Cent Garima Term Deposit Scheme: Eligibility
Anyone can avail of the benefit of this scheme including NRE (non-resident external) customers.

Central Bank Cent Garima Term Deposit Scheme: Deposit tenure 
The deposit will be taken for a certain period of 777 days. No longer or shorter-term deposits will be accepted under the plan.

Central Bank Cent Garima Term Deposit Scheme: Deposit amount 
The minimum amount under this scheme is Rs 10,000 and the maximum is Rs 10 crore.

Central Bank Cent Garima Term Deposit Scheme: Interest rate
Deposits made under the scheme will earn 7.55 per cent interest (Annualised yield: 7.77 per cent).
Senior citizens will receive an additional interest of 0.50 per cent.
However, in the case of NRE account deposits, senior citizens will not get additional interest rate benefits.

Central Bank Cent Garima Term Deposit Scheme: Premature Withdrawal allowed?
Penal interest at the rate of 1 per cent will be charged on premature withdrawal of time deposits irrespective of the amount.

Central Bank Cent Garima Term Deposit Scheme: Demand loan/Overdraft facility
Loan/overdraft facility would available up to 90 per cent of the deposit amount. The interest rate would be 1.00 per cent per annum above the applicable floating interest rate.
*In the case of MIDR, QIDR, FDR amount of interest will be credited to the loan account.

How fixed deposits work?

Fixed deposits, often known as term deposits or time deposits, entail depositing a specified sum of money with a financial institution for a specific length of time. When you open a fixed deposit, you are lending money to a financial institution. In exchange, they provide you with an annualised rate of interest that will remain steady during the period of your deposit. This predetermined interest rate is one of the most essential factors impacting the safety and stability of Fixed Deposits.

It allows you to choose a duration for your deposit that matches your financial goals, whether it is a few months, a year, or several years. The longer the tenure, the higher the return on investment.

Central Bank Cent Garima Term Deposit Scheme: How much will you earn by investing Rs 1 lakh, 3 lakh and 5 lakh?

Rs 1 lakh investment
If you invest Rs 1 lakh for 777 days, you will get around Rs 17,260 as capital gain at 7.55 per cent interest rate. The total maturity amount would be Rs 1,17,260. For senior citizens, the maturity amount would be around Rs 1,18,490 as they will get 8.05 per cent interest on the investment amount.

Rs 3 lakh investment
Similarly, if you invest Rs 3 lakh for 777 days, you will get around Rs 51,780 as capital gain at 7.55 per cent interest rate. The total maturity amount would be Rs 3,51,780. For a senior citizen, the maturity amount would be around Rs 3,55,472 as they will get 8.05 per cent interest on the investment amount.

Rs 5 lakh investment
Similarly, if you invest Rs 5 lakh for 777 days, you will get around Rs 86,300 as capital gain at 7.55 per cent interest rate. The total maturity amount would be Rs 5,86,300. For a senior citizen, the maturity amount would be around Rs 5,92,453 as they will get 8.05 per cent interest on the investment amount.

This is to be noted that all the above calculations are based on compounded interest on a quarterly basis as banks use quarterly compounding to calculate interest rates in rupees.