CENT Tax Saving Deposit 2026
The Central Bank of India CENT Tax Saving Deposit is a five-year tax-saving fixed deposit for individuals and Hindu Undivided Families (HUFs) with a Permanent Account Number (PAN), offering deductions under Section 80C of the Income Tax Act. Deposits range from Rs.100 to Rs.1,50,000 a financial year and cannot be withdrawn early except on the depositor's death.
Also, Check - Fixed Deposit
Features of Central Bank of India CENT Tax Saving Deposit
Account Type | Both single and joint account can be opened and maintained |
Amount | Minimum - INR 100 Maximum - INR 1,50000 (per financial year) |
Rate of Interest | 6.00% p.a. |
Lock in Period | 5 years |
TDS | Tax will be deducted at source, with accountholders expected to submit a self-declaration through Form 15G or 15H |
Loan against CENT Tax Saving Deposit | No loan facility available |
Nomination | Nomination facility available, except for accounts held on behalf of minors |
Auto Renewals | N/A |
Note: The interest rates are effective from 10 May 2026.
Deposits into the CENT Tax Saving Deposit must be made in multiples of Rs.100 above the minimum amount.
A joint CENT Tax Saving Deposit account can be opened by two adults, or by an adult together with a minor, with the deposit payable to either holder or to the survivor.
In a joint CENT Tax Saving Deposit account, the Section 80C tax deduction is available only to the first named holder of the deposit.
Eligibility Criteria to Apply for CENT Tax Saving Deposit
The CENT Tax Saving Deposit account from Central Bank of India can be opened by the following.
- An individual in his/her own name
- A joint account between two or more individuals
- A guardian or a parent can open this account for a minor
- Hindu Undivided families
CENT Tax Saving Deposit Interest Rates
Currently, the rate of interest offered by the scheme is 6.00% p.a.
Note: Individuals should check the interest rates with the bank before opening an account as Central Bank of India maintains the right to change rates without prior intimation and at its sole discretion.
Summary
The CENT Tax Saving Deposit from Central Bank of India is a five-year fixed deposit designed for individuals and HUFs who want to claim a tax deduction under Section 80C while earning a fixed interest rate. It suits savers who do not need to access their funds before maturity, since withdrawal before five years is allowed only if the depositor dies. Check the interest rate table above for the latest rates, or visit your nearest Central Bank of India branch to open an account.
FAQs on CENT Tax Saving Deposit
- What is the CENT Tax Saving Deposit?
The CENT Tax Saving Deposit is a five-year fixed deposit from Central Bank of India that lets individuals and Hindu Undivided Families (HUFs) with a PAN claim a tax deduction under Section 80C of the Income Tax Act. It has a fixed lock-in of five years and no provision for early closure other than on the depositor's death.
- Who is eligible to open a CENT Tax Saving Deposit account?
An individual can open a CENT Tax Saving Deposit in their own name, jointly with another individual, or as a guardian on behalf of a minor. A Hindu Undivided Family (HUF) can also open the account in the name of its Karta.
- Can a club, society or company open a CENT Tax Saving Deposit account?
No, the CENT Tax Saving Deposit can only be opened by eligible individuals and Hindu Undivided Families. Societies, clubs, companies and similar entities are not permitted to hold this account.
- What is the lock-in period on the CENT Tax Saving Deposit?
The CENT Tax Saving Deposit carries a fixed lock-in period of five years from the date of deposit. This lock-in is what qualifies the deposit for the Section 80C tax deduction.
- Is premature withdrawal allowed on the CENT Tax Saving Deposit?
No, the CENT Tax Saving Deposit cannot be withdrawn before the end of its five-year term under normal circumstances. Premature withdrawal is permitted only if the depositor passes away during the tenure.
- Can the CENT Tax Saving Deposit be used as collateral for a loan?
No, funds held in a CENT Tax Saving Deposit cannot be pledged as security or collateral for a loan or overdraft. This restriction is tied to its lock-in and tax-saving status.
- Is a loan facility available against the CENT Tax Saving Deposit?
No, Central Bank of India does not offer a loan facility against the CENT Tax Saving Deposit. This is consistent with the account's tax-saving purpose and its lock-in requirement.
- Is there a limit on how much can be deposited into a CENT Tax Saving Deposit account?
Yes, the CENT Tax Saving Deposit has a minimum and a maximum deposit limit per financial year, as listed in the features table above. There is no cap on how many times you can deposit, as long as the cumulative amount stays within that annual limit.
- Is TDS deducted on the CENT Tax Saving Deposit?
Yes, Central Bank of India deducts Tax Deducted at Source (TDS) on the interest earned from a CENT Tax Saving Deposit. Account holders can avoid this deduction by submitting a self-declaration through Form 15G or Form 15H, where eligible.
- Is nomination available on the CENT Tax Saving Deposit?
Yes, the CENT Tax Saving Deposit offers a nomination facility for the account holder. This facility is not available for accounts opened on behalf of a minor.
- Does the CENT Tax Saving Deposit renew automatically at maturity?
No, the CENT Tax Saving Deposit does not have an automatic renewal option. The account matures at the end of its fixed five-year tenure.
- Do senior citizens get a higher interest rate on the CENT Tax Saving Deposit?
Yes, Central Bank of India offers senior citizens an additional interest rate over the regular rate on the CENT Tax Saving Deposit. The exact differential is shown in the interest rate table above.
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