Central Bank of India FD Interest Rates 2025 Calculator

Compound Interest Formula:

\[ A = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Principal Amount (P):

₹

Annual Interest Rate (r):

Time Period (t):

years

Compounding Frequency (n):

Maturity Amount (A):

Total Interest Earned:

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1. What is the Compound Interest Formula?

The compound interest formula calculates the maturity amount for fixed deposits by accounting for interest earned on both the principal amount and accumulated interest over time. This allows your investment to grow at an accelerating rate compared to simple interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ A = P \times (1 + \frac{r}{n})^{(n \times t)} \]

Where:

\( A \) — Maturity amount (₹)
\( P \) — Principal amount (₹)
\( r \) — Annual interest rate (decimal)
\( n \) — Compounding frequency per year
\( t \) — Time period in years

Explanation: The formula calculates how your investment grows when interest is compounded at regular intervals, giving you the total amount you'll receive at maturity.

3. Importance of FD Investment

Details: Fixed deposits with Central Bank of India offer secure returns with guaranteed interest rates, making them an excellent choice for risk-averse investors looking for stable growth of their savings.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in percentage, time period in years, and select compounding frequency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the current FD interest rates at Central Bank of India?
A: Interest rates vary based on tenure and deposit amount. Please check the latest rates on the official Central Bank of India website or visit your nearest branch.

Q2: How does compounding frequency affect returns?
A: More frequent compounding (monthly vs annually) results in higher returns due to interest being calculated and added to principal more often.

Q3: Are FD investments taxable?
A: Interest earned on FDs is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens) annually.

Q4: What is the minimum investment amount?
A: Central Bank of India typically requires a minimum deposit of ₹1,000 for regular FDs, but this may vary for special schemes.

Q5: Can I withdraw my FD prematurely?
A: Yes, but premature withdrawals may attract penalty charges and the interest rate may be revised to the applicable rate for the period the deposit was held.