Public sector financial institutions across India are maintaining competitive yields on term deposits to attract investors seeking guaranteed returns. Central Bank of India, one of the prominent public sector lenders in the country, provides multiple options for fixed deposits ranging from short-term holdings to long-term financial commitments. Depositors can choose tenure flexibility starting from as brief as 7 days up to a maximum duration of 10 years. For individuals planning a medium-term investment horizon of exactly 24 months, understanding the exact interest rate structure and additional benefits is crucial before locking in their funds.
Fixed Deposit Options and 2-Year Rate Structure
For a fixed tenure of 24 months, which equals 2 years, Central Bank of India offers a tiered interest rate structure based on the depositor's age category. General public customers whose age is up to 59 years receive an annual interest rate of 6.25 percent on 24-month fixed deposits. This rate offers a stable return for individuals looking to safeguard their capital while earning predictable interest over a two-year investment period.
These specific yield figures apply strictly to term deposits valued under ₹3 crore. Investors depositing sums below this threshold can lock in the prescribed 6.25 percent annual rate for the entire two-year tenure, ensuring that their capital grows steadily without being exposed to market fluctuations during the tenure.
Additional Benefits for Senior Citizens and Deposit Thresholds
Senior citizens enjoy enhanced financial benefits when allocating their savings into Central Bank of India fixed deposits. Depositors aged 60 years or above receive an additional interest rate benefit of 0.50 percent over the standard rates applicable to the general public. Consequently, senior citizen depositors securing a 24-month fixed deposit account earn an attractive interest rate of 6.75 percent per annum.
Furthermore, super senior citizens who are 80 years of age or older are eligible for supplementary interest incentives. However, the bank specifies that these extra rates for super senior citizens apply exclusively to non-callable fixed deposit accounts, where early withdrawal facilities are restricted. It is important to note that Central Bank of India last revised its fixed deposit interest rates on August 10, 2026.
Repo Rate Impact on Fixed Deposit Yields
The interest rate landscape for fixed deposits is closely aligned with the monetary policy decisions executed by the Reserve Bank of India. Today, the central bank announced its decision to maintain the repo rate at its existing level for the 4th consecutive time. The RBI last adjusted the key policy benchmark in December 2025, when it implemented a 0.25 percent reduction, bringing the repo rate down to 5.25 percent.
The repo rate directly influences the overall interest rate environment across commercial banks. When the RBI lowers the repo rate, commercial banks usually reduce their lending rates alongside the interest offered on fixed deposits. Conversely, when the central bank hikes the repo rate, interest rates on both loans and fixed deposits experience an upward adjustment, allowing depositors to secure higher yields on fresh investments.
