If you are looking for an investment in which the risk is low and the return is also fixed, then Fixed Deposit (FD) still remains the first choice of people. Especially FD of government banks is considered a safe investment. In this context, the FD scheme of Central Bank of India has emerged as an attractive option for investors. If you deposit ₹ 2,00,000 in the FD of this bank, you can get fixed interest up to ₹ 80,188 on maturity. Let us understand its complete mathematics in simple language.
FD can be opened for 7 days to 10 years
Central Bank of India offers FD schemes of different tenures to its customers. Here you can open an FD account for a minimum period of 7 days to a maximum of 10 years. The bank is offering interest ranging from 3.00% to 6.80% depending on different tenures on these FD accounts. Being a government bank, investing in it is considered quite safe, hence many people like to keep their savings in FD.
Higher interest on special FD scheme
Central Bank of India is also running some specific tenure FD schemes. In the bank’s 444 day and 555 day special FD scheme, general citizens can get interest up to 6.30% and senior citizens can get interest up to 6.80%. Apart from this, the bank is offering interest of around 6.00% to general citizens and around 6.50% to senior citizens on 3 year FD.
How much return will you get on depositing ₹2 lakh?
If an ordinary citizen invests ₹ 2,00,000 in a 5-year FD in Central Bank of India, he can get approximately ₹ 2,73,380 on maturity. This includes interest of approximately ₹73,380. Whereas if a senior citizen makes an FD of ₹ 2,00,000 for the same period, then he can get around ₹ 2,80,188 on maturity. That means, you get a fixed interest of around ₹ 80,188 on this investment.
Why is FD investment considered safe?
Fixed deposit is considered a safe investment because your principal amount remains safe and you get pre-determined interest. The special thing is that on maturity you get back both the principal amount and interest with guarantee.
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