Punjab National Bank, or PNB, is India’s first nationalised bank. It commenced operations in 1895, with a capital of INR 2 Lakh and working capital of INR 20,000. Since its inception, a total of nine banks have merged or amalgamated with PNB. Today, PNB’s market capitalisation is estimated to be INR 508.26 billion.
The bank provides various plans to its retail clients, including fixed deposit options that assure fixed returns. These schemes are regarded as highly profitable methods of accumulating savings, catering to both senior citizens and the general public. By incorporating such plans into their investment portfolios, customers can effectively strike a balance between risks and rewards.
Here is an overview of the various PNB fixed deposits, their benefits, a snapshot of PNB FD Interest Rates, and how to start the investing process.
PNB FD Interest Rates Below 2 Crores – February 2024
The following table mentions PNB FD Interest Rates earned by regular citizens (i.e. below the age of 60 years) and senior citizens for deposits below INR 2 crores:
| Tenure | PNB Bank FD Rates for senior citizens | PNB Bank FD Rates for the general public |
|---|
PNB FD Interest Rates for Tax Saving Scheme
If tax-saving is your goal, you will need to avail yourself of the PNB fixed deposit with a fixed tenure of five years. The PNB FD Interest Rate for 5-year tenure is 6.50% for regular citizens (i.e. below the age of 60 years) and 7.30% for senior citizens.
The PNB five-year tax saver deposit allows a tax deduction of up to INR 1.5 lakhs under Section 80C of the Income Tax Act of 1961. The tax deduction is available only in the fiscal year of the deposit. Interest earned is taxed at the income tax slab rate.
| Tenure | PNB FD Interest Rates for general citizens | PNB FD Interest Rates for Senior Citizens |
| 5 years | 6.50% | 7.30% |
Loan Against Punjab National Bank FD
PNB fixed deposit holders are also eligible to take a loan against their fixed deposits. This is an attractive feature as they can take a loan amount of up to 90% of the deposit. The rate of interest on a loan against the deposit is 0.75% above the PNB FD Interest Rates.
How to Invest in PNB Fixed Deposit?
Here is a brief guide on how to start investing in PNB fixed deposits:
1. Online
Source: Punjab National Bank
2. Internet Banking
- Log into your PNB internet banking account, and select the ‘Open Fixed Deposits’ option.
- Fill out all details, including nominee details and tenure instructions.
- Select the door-step assistance. This option allows you to submit documents to the bank representative.
- On verification of documents and application validation, the FD will get booked.
- You will receive the FD certificate at the communication address.
- You will receive a confirmation SMS on your registered mobile number.
3. PNB Bank Mobile App
- Download the PNB Bank mobile app, and log in.
- Choose the ‘Open FD’ option.
- Next, fill in all details, including nominee details and select door-step assistance.
- Once done, a bank representative will visit to do the verification.
- Upon successful verification, the FD will be booked.
- You will receive the FD certificate at the communication address.
- You will receive a confirmation SMS on your registered mobile number.
4. Offline
- Visit the nearest PNB Bank branch.
- Fill out the PNB Bank’s FD application form.
- Submit all documents with the deposit amount and application form.
- Upon successful processing of the application, the FD certificate will be dispatched to the communication address.
- You will receive a confirmation SMS on your registered mobile number.
Documents required to open a PNB fixed deposit
The following documents are required to open a fixed deposit at PNB:
- Identity proof: Aadhaar card, Voter ID card, driver’s license, PAN card.
- Address proof: Utility bills such as electricity bills and gas bills, passport.
- 2 passport-size photographs.
- Bank account statements.
Eligibility criteria for PNB FD
You must fall under the following categories to be eligible to open the fixed deposit:
- Resident individual
- Non-resident Indian
- Hindu Undivided Family
- Sole proprietorship, partnership firms
- Public and private limited companies
- Registered societies, trusts and associations
Types of PNB Fixed Deposits
PNB offers the following types of fixed deposits:
PNB ordinary term deposit scheme
- Account holders can deposit between INR 100 and a maximum of INR 1,99,99,999.
- They can take a demand loan or access an overdraft facility, on deposits of over INR 10,000, after submitting a written request.
- The deposit period is between 7 to 179 days.
PNB tax shield – fixed deposit scheme
- Account holders can deposit between INR 100 and its multiples thereof up to INR 1.5 lakhs per annum.
- There is a lock-in period of five years and a tax deduction of up to INR 1.5 lakhs per annum under 80C of the Income Tax Act of 1961. However, tenure can be extended up to 10 years.
- Account holders have an income option (monthly/ quarterly, half-yearly, or yearly). Interest will be compounded quarterly in the case of half-yearly and yearly payments.
- Under the maturity option, interest will be compounded quarterly and paid out when the deposit matures.
- The interest for senior citizens, i.e. above the age of 60 years, is 0.50% more than for regular citizens.
- In this account, a loan or advance can only be availed of post the completion of the lock-in period of five years.
PNB Pranam Fixed Deposit Scheme
- To avail of this scheme, one must be 55 years of age and above.
- The minimum deposit amount is INR 100, and the maximum deposit amount is INR 1,99,99,999.
- The tenure is between 1 and 10 years.
- Senior citizens above the age of 60 years are eligible for an additional rate of 0.50%.
- Account holders can access both income and maturity options.
- They can also avail of a premature withdrawal facility. In such a case, the interest rate is paid on a contractual rate, or it is interestingly applicable for the duration for which the deposit was active, whichever one is lower among the two.
- Fixed deposit holders can also avail of a demand loan or overdraft facility, which is available on deposits of INR 10,000 or more upon a written request.
Conclusion
In a country like India, the fixed deposit is still a popular choice among consumers. For consumers stressed about the volatility of market-linked investments, the possibility of earning fixed and guaranteed returns is an attractive prospect. They can benefit from the PNB FD interest rates, which are higher than ever before. Smart consumers can use this instrument to build savings and make it a strategic part of their wealth creation strategy.
FAQs
Q. Is it safe to invest in PNB fixed deposits?
Yes, it is safe to invest in fixed deposits offered by PNB, the oldest nationalised bank in India.
Q. What is the tenure of a PNB fixed deposit? How do I choose the right tenure for me?
Like most other banks, you can choose a tenure between 7 days to 10 years, typically. However, some fixed deposits can have a tenure between 1 to 10 years.
Q. What is the highest PNB FD interest rate I can earn?
The highest PNB FD interest rate you can earn is 6.50 % for regular citizens and 7.30 % for senior citizens who invest in a fixed deposit with a tenure of between five to 10 years.
