PSU Bank Cuts Savings Account Rates By 10-25 Bps; FD Interest Rates Revised Too; How Senior Citizens Benefit?

Central Bank of India, a major PSU, has made key changes to its deposit account for customers. With effect from August 10, the Central Bank of India reduced savings account rates by 10 to 25 basis points, while FD rates were changed as well. Senior citizens get the highest rate above 7% on fixed deposits below Rs 3 crore.

Central Bank of India Savings Account:

The bank trimmed rates across balances; however, major cuts were seen in savings above Rs 10 crore.

1. Savings Balance: Up to or equal to Rs 10 crore: 2.50% rate - down by 10 bps from earlier 2.60%.

2. Above Rs 10 crore to less than or equal to Rs 100 crore savings: 2.75% rate, down by 25 bps from the previous rate of 3%.

3. Above Rs 100 crore to less than or equal to Rs 250 crore savings: New rate is 2.85% from the previous 3.10%.

4. Above Rs 250 crore to less than or equal to Rs 500 crore savings: New rate 3% from earlier 3.25%.

5. Above Rs 500 crore to less than Rs 1,000 crore: New rate 3.50% from previous 3.75%.

6. Above Rs 1,000 crore savings: New rate i 4.25% from earlier 4.50%.

Central Bank of India FD Rates:

These rates are applicable on FDs below Rs 3 crore.

General Category:

The bank is offering the highest rate to general category individuals to the tune of 6.70% on tenure of 2 years to less than 3 years.

Meanwhile, the lender offered 6.50% rates on tenures like 1 year to less than 2 years; 3 years to less than 5 years; and 5 years & above up to 10 years.

Further, a 5.50% rate is given on tenures like 180 - 270 days and 271 - 364 days. Also, the rate of interest is set at 5% on a 91 - 179-day tenure.

On shorter terms, the rate of interest is at 3.50% on 7 - 14 days, 3.75% each on maturities like 15 - 30 days and 31 - 45 days. Also, 4.50% rates each for 46 - 59 days and 60 - 90 days maturities.

Senior Citizens:

The senior citizens will benefit more due to higher rates.

For instance, a 7.20% interest rate is offered on 2-year to less than 3 years tenure, while the rate is 7% each on 1 yr to less than 2 yrs; 3 yr to less than 5 years; and 5 years & above upto 10 years maturities.

Additionally, 6% is levied on 180 - 270 days and 271 - 364 days tenures. While the rate was 5% on tenures from 46 days to 90 days. There is a 5.5% rate offered on 91 - 179 days tenure. Moreover, a 4.25% rate is imposed on tenures from 15 days to 45 days. The shortest rate is 4% offered on a tenure of 7 - 14 days.

The Central Bank of India's latest revision in interest rates, despite the RBI keeping the repo rate unchanged at 5.5% in the August 2025 policy. RBI paused for the first time in 2025, after reducing repo rate by 100 basis points from February to June policy.