Central Bank Of India FD Rates: Latest Interest Rates, Tenure And Returns

Fixed deposits are generally regarded as a secure option for many investors seeking long-term, stable returns and capital protection. In 2025, on average, a fixed deposit remains the most appealing investment choice, representing 59.5% of all bank deposits. 

A risk-averse investor or someone seeking portfolio diversification/emergency fund often resorts to an FD at a reliable financial institution.

The Central Bank of India FD rates are quite competitive compared with other financial institutions. It is suitable for both short- and long-term use, depending on the tenure. 

If you are interested, you can check CBI FD interest rates today. They offer flexible options that let you earn a consistent income while protecting your principal. 

Latest Central Bank Of India FD Rates

The latest central bank FD interest rates are quite optimal and competitive, which allows an investor to choose the optimal time frame to maximize their returns. The Reserve Bank of India adjusts fixed deposit interest rates based on factors such as market conditions, RBI policy, and liquidity measures. These rates also vary depending on the deposit tenure and whether the account holder is a regular client or an older adult.

• Interest Rates for Regular Investors

The central bank monthly income scheme interest rate varies by tenure and the amount of deposit. For the central bank short-term FD, yields are generally lower than for longer-term deposits. However, a higher tenure does not automatically result in a higher interest rate under all conditions (please refer to Table 1.0 for ROI on different deposit types, depending on the customer type). 

For example, interest rates for a deposit tenure of 7 to 45 days can be approximately 3.5%. However, if the tenure extends to six months to one year, the central bank fixed deposit rates can rise to 4.5%-6%. Deposits held for longer periods, such as 2 to 5 years, offer interest rates around 6.75%. 

The compounding growth rate makes a fixed deposit a reliable and steady option for conservative investors. 

• Interest Rates for Senior Citizens

Compared to ordinary investors, retired people typically get an additional 0.50% interest advantage through the bank’s central rate for fixed deposits. If the ordinary rate is 6.75%, then the central bank FD rates for senior citizens will be 7.25%, varying by scheme. 

Here is the Central Bank FD interest rate chart  showing ROI based on the deposit tenures and the category of investors:

Source: Central Bank¹

These figures represent typical ranges observed for the Central Bank of India FD rates 2026, though the bank may update them periodically.

Features Of Central Bank Of India Fixed Deposits

If you want to apply for the central bank fixed deposit schemes, you need to know exactly what your bank can offer you. Here are the salient features of the Central Bank of India Fixed Deposits

1. Flexible Tenure Options

As the tenure is broad and flexible, ranging from 7 days to 5 years and beyond, you can benefit from multiple interest rates depending on the duration. This flexible maturity schedule can align investment with different financial objectives.

Individuals saving money for a short-term goal, such as an emergency fund or a vacation, would likely use a six-month deposit. However, long-term investors planning for retirement can choose a longer tenure. 

2. Loan Against FD

Loans are another benefit of using Fixed Deposits. Rather than having to withdraw your Fixed Deposits before their maturity, you can borrow money against your Fixed Deposits by using them as collateral.

3. Auto Renewal Facility

With the auto-renewal feature, when your FD matures, it will automatically renew for the same term as before unless you notify the bank otherwise. This prevents your money from sitting idle and lets you keep earning interest without needing to reinvest in a new FD.

Types Of FD In The Central Bank Of India

The Central Bank of India offers several FD options to suit your financial goals, such as regular fixed deposits, tax-saving fixed deposits, and interest-generating fixed deposits.

The most common type of deposit investment is through regular FDs. Regular FDs give investors flexibility in their investment choices by allowing them to select both the tenure and the method of interest payment. Investors can also choose between cumulative and/or periodic interest payment options.

A central bank tax-saving FD offers a decent interest rate and a deduction under Section 80C of the Income Tax Act (old regime). For this benefit, the minimum tenure is a five-year lock-in period. For more details about the tax benefits, we suggest you contact with your tax consultant. 

There is an alternative in the Monthly Income Deposit Scheme. The Central Bank's monthly income scheme interest rate can assist seniors or others seeking a steady income.

Documents Required To Invest In Central Bank FD

To open a Fixed Deposit account with the Central Bank of India, the customer only needs to provide basic KYC documents. These documents help the bank verify the customer's identity and address before accepting a Fixed Deposit. 

Examples of identity verification documents include Aadhaar Card, PAN Card, Passport, and Voter ID. Address verification may require a utility bill, passport, and/or an Aadhaar Card. An investor must also provide a passport-sized photo and complete the Account Opening Form.

For existing account holders, opening a fixed deposit is simple because they don't need to resubmit documents. They can open an FD account through net banking and mobile banking. 

FD Vs Other Fixed Income Investments

Although fixed deposits provide stability and a guaranteed return, many investors do compare them to other fixed-income investments, such as bonds or other debt instruments.

The yield on corporate bonds is often higher than that of FDs; however, they might carry varying degrees of market risk and/or require longer holding periods.

Modern investment vehicles allow investors to access a broader range of diversified fixed-income options, including corporate bonds, treasury securities, and managed, fee-based, structured approaches. This diversification helps reduce overall risk and may boost total returns while ensuring income stability. You can visit Grip Invest for more fixed-income securities investment options, which can be an excellent alternative to conventional FDs. 

Investors might consider using additional tools, such as central bank FD calculators, to determine FD yields and compare them with yields from alternative fixed-income investments.

FAQs On Central Bank Of India FD Rates

1. What is the current FD rate in the Central Bank of India?

FD rates at central banks generally range from 3.5% to 6.75%, depending on how long people keep their money with the bank.

2. What is the highest FD rate offered by the bank?

Generally, the maximum FD rates at the Central Bank are for Long-term deposits (3 to 5 Years), which are approximately 6.75%, plus or minus the Terms (Policy Changes), plus actual interest.

3. Are senior citizen FD rates higher?

Yes, senior-citizen FD rates are generally around 0.5% higher than normal FD Interest Rates, giving retirees better returns on their investments.

Reference:
1. Central Bank, accessed from: https://centralbank.bank.in/en/interest-rates-on-deposit 

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