PNB Recurring Deposit Rates – Open RD Account Online

PNB, which stands for Punjab National Bank, is a government-owned banking and financial services institution in India. Established in 1894, the bank has experienced substantial growth since its inception. It is headquartered in New Delhi. Offering one of the highest interest rates, PNB recurring deposit rates stand out as a top choice for those seeking to build a substantial corpus over the long term. Continue reading to know about PNB RD interest applicable and much more.

PNB RD Interest Rates 2024 (Under ₹2 Crores)

Following is a table that specifies the PNB recurring deposit rates for general, senior and super senior citizens. Take a look at it if you are planning to invest in PNB recurring deposits:

*These PNB recurring deposits interest rates are effective from 28th November 2023.

Features of PNB Recurring Deposit Rates 2024

Here are some of the most critical features of the Punjab National Bank recurring deposit:

1. The PNB RD account can be opened with a minimal amount of ₹100, making it accessible for a wide range of investo₹
2. The tenure options for PNB RD range from 180 days to 10 years, providing customers the flexibility to choose the duration of their investment.
3. Senior citizens enjoy an additional interest of 0.50% over the regular PNB recurring deposit rates, enhancing their returns on investment.
4. PNB provides the option of availing a loan against the deposit amount, offering liquidity to depositors in times of financial need.
5. Tax Deducted at Source (TDS) in case of interest that you earn from recurring deposit varies based on the applicant’s income slab, ensuring compliance with income tax regulations.
6. PNB RD account holders have the convenience of nominating an individual to receive the matured amount in case of the unfortunate demise of the account holder’s.

How to Open PNB RD Account Online?

To open a Recurring Deposit (RD) Account with Punjab National Bank (PNB) online, follow these steps:

• Step 1: Ensure that your Netbanking account is active. If it’s inactive, complete the activation process by filling out the Netbanking activation form at any Punjab National Bank branch.
• Step 2: Access your Netbanking Account online by entering your login credentials, including your username and password.
• Step 3: Once logged in, choose the E-Recurring Deposit option from the menu on your Punjab National Bank Netbanking Account.
• Step 4: Fill out the RD form, specifying details such as the RD amount, tenure, etc. Senior citizens should check the “Senior Citizen” box to avail higher PNB recurring deposit rates.
• Step 5: Upon successful completion of the above steps, your RD account will be opened, and the RD amount will be automatically credited by the bank on the scheduled due date.

How to Open an PNB RD Account Offline?

To initiate the process of opening a Recurring Deposit (RD) Account with Punjab National Bank (PNB) offline, adhere to the following step-by-step guide:

• Step 1: Choose the PNB branch where you wish to open your RD account. It is recommended to select the branch where you hold your savings account so that crediting your monthly instalment becomes easier. 
• Step 2: Obtain the RD form from the selected PNB branch and duly fill it out. 
• Step 3: Submit the completed form along with necessary documents, including photographs, identity proof, address proof, PAN, etc. 
• Step 4: Make your initial deposit, which can be done in cash, by cheque, or through net banking.
• Step 5: The bank’s authorised personnel will review the submitted form and documents. If everything is in order, your RD account will be successfully opened.

How to Calculate PNB Recurring Deposit Rates?

There are two different ways you can calculate the maturity amount you will receive by investing in PNB recurring deposits. These are as follows: 

1. RD Manual Calculation Formula

The formula for calculating the total amount that will be accumulated upon maturity in your PNB RD account is:

A = P(1 + r/n) ^ nt. 

In this formula:

‘A’ represents the maturity amount.

‘P’ denotes the principal.

‘r’ stands for the annual interest rate.

‘n’ signifies the number of times interest has been compounded.

‘t’ is the tenure.

For example, consider the scenario where Mr X starts an RD account with a regular deposit of ₹1000 on April 1, 2020, for a tenure of 2 years The applicable PNB recurring deposit rate is 6.5%. 

A = 1000*(1 + 0.065/4)^4×2 

A = ₹25,685

According to the PNB recurring deposit calculator formula, the interest on this deposit would amount to ₹1685.

2. How to Use Online Recurring Deposit Calculator?

As you are aware that the manual calculation looks quite complicated and might result in a number of errors, therefore it is best to use an online calculator and save your time. Here is a step-by-step guide on how to use a recurring deposit calculator online:

• Step 1: Select the amount you want to invest in the recurring deposit monthly.
• Step 2: Enter the interest rate the bank offers on your recurring deposit. Keep in mind that this interest rate varies depending upon your deposit tenure.
• Step 3: Choose your investment tenure for how long you want to invest in the recurring deposit.

After correctly providing all these details, the calculator will provide you with the results of your total investment amount, and total value including the interest. 

Eligibility Criteria for PNB RD Account

Here are all the eligibility criteria to start an RD account with PNB:

1. Individuals can apply for an RD account either singly or jointly with othe₹
2. Minors aged 10 years and above can open an RD account in their name by providing proof of age.
3. Minors below 10 years can open an RD account under the guardianship of a natural or legal guardian.
4. Non-individuals such as Proprietorship, Partnership Firms, Commercial Organisations, Companies, and Corporate Bodies can also open an RD. 
5. Hindu Undivided Families (HUF) are eligible to open an RD.
6. Entities like Associations, Clubs, Societies, Trusts, and Religious/Charitable Educational Institutions are also eligible to open PNB recurring deposits.
7. PNB also allows Municipalities or Panchayats, Government or Quasi-Government bodies to open an RD account
8. Illiterate and blind individuals are also eligible to open RD accounts.
9. The RD account can be initiated with a minimum deposit of ₹100, and in multiples of 100 thereof. There is a maximum cap on the deposit amount.

Types of PNB RD Accounts

Recurring Deposits (RD) offer a safe and convenient way to save and grow your money. Here are all the different types of PNB RD accounts:

PNB Recurring Deposit Scheme:

Open to individuals aged 10 years and above, this RD scheme is also accessible to those below 10 years under the supervision of a guardian. Additionally, partnership firms, Hindu Undivided Families (HUF), clubs, associations, and various government bodies can avail this RD account. The minimum investment is as low as ₹100, and in multiples of 100 thereof.

• Minimum Deposit: ₹100
• Maximum Deposit: No Maximum Deposit Limit
• Tenure: 6 months to 120 Months
• Interest Rate: 5.50% to 7.25% for normal citizens and 6.00% to 7.75% for senior citizens
• Eligibility: Indian citizens, institutions, organisations, HUF etc. 

PNB Special Recurring Deposit Product:

Tailored for government, private institutions, and corporate bodies, this special RD product is designed to accommodate entities with a minimum of 10 employees or 75% of eligible employees (whichever is lower). Some of the most important features of this account include:

• Minimum Deposit: ₹10 
• Maximum Deposit: No Maximum Deposit Limit
• Tenure: 6 months to 120 Months
• Interest Rate: Applicable term deposit CARD rate below ₹1 Crore
• Eligibility: An institution with a minimum of 10 or 75% of the eligible employees, whichever is less, is eligible for this type of recurring deposit account. 

PNB Recurring Deposit (E-RD):

Exclusively available to PNB internet banking users, the E-RD account provides the convenience of online management. Similar to a regular RD, it also allows for nominations. Upon maturity, the deposited amount is credited back to the same account used for the term deposit.

• Minimum Deposit: ₹100
• Maximum Deposit: No Maximum Deposit Limit
• Tenure: 120 Months
• Interest Rate: 5.50% to 7.25% for normal citizens and 6.00% to 7.75% for senior citizens
• Eligibility: Existing PNB savings and current account customers, having internet banking access. 

PNB RD Premature Withdrawal Rules

Here are all the important withdrawal rules you have to keep in mind before opening a Punjab National Bank recurring deposit:

1. Premature Withdrawal: Typically, RD schemes do not allow premature withdrawal, and the RD amount is accessible only upon maturity.
2. Emergency Withdrawal: In the event of an emergency, you can withdraw your RD amount before maturity by closing the account.
3. Penalty Deduction: If a premature withdrawal occurs, the bank may impose a penalty of 1% to 2% on the PNB recurring deposit rate accrued on the RD amount until the withdrawal date.
4. Minimum Lock-in Period: RD accounts have a minimum lock-in period of 3 months. If a depositor opts for premature withdrawal before this period, they earn zero interest, and only the principal amount is refunded. 

PNB RD Penalty

Here is a list of the most important PNB recurring deposit rates penalty charges:

• PNB allows investors to opt for premature withdrawal of their recurring deposits. However, a penalty of 1% is levied on the prematurely withdrawn amount.
• Account holders can initiate a PNB recurring deposit account with a minimum amount of ₹100. There is no upper limit on the maximum investment amount. In the event of pending investments not deposited before maturity, the bank imposes a penalty ranging from ₹1 to ₹100 per month.
• Depositing pending instalments before the maturity date incurs a penalty, set at ₹1 for every ₹100 per month.

How to Close the PNB RD Account Offline?

The customers will have to visit the nearby branch where they have opened the RD account to close it offline. Here is the step-by-step guide to closing it:

• Step 1: Get the PNB account closure form either from their official website or directly from the branch.
• Step 2: Input all the necessary details on the form carefully. 
• Step 3: Attach supporting documents, including your passport, chequebook, debit card, and a copy of your KYC documents.
• Step 4: Submit the completed form along with the required documents to the branch manager.

TDS on PNB RD

When it comes to investing tools that offer tax-saving opportunities, recurring deposit schemes are a popular choice. However, it’s important to keep in mind that these schemes are subject to taxation. If the total interest you earned from an RD exceeds ₹40,000 (₹50,000 for a senior citizen) in a financial year, a TDS of 10% is automatically deducted. This 10% TDS deduction rate is only applicable for those who provided their PAN data, otherwise the bank deducts 20%. 

Loan Against PNB Recurring Deposit

By investing in Punjab National Bank recurring deposits, investors can avail a loan against it without the hassle of applying for a fresh loan. This loan can be used for various purposes such as education, property or vehicle loans. 

Final Words

Now that you are aware of the PNB recurring deposit rates as well as the other features these schemes offer, you might have a clear idea as to why it is a popular investment option. With a minimum investment of just ₹100 per month and flexible tenures ranging from 6 months to 10 years, PNB RDs cater to a wide range of investors.

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