Latest Punjab National Bank FD Interest Rate April 2023
Punjab National Bank or PNB fixed deposit interest rates are currently in the range of 3.50% to 7.25% for the general public, 4% to 7.75% for senior citizens, and 4.3% to 8.05% for super senior citizens for deposits below ₹2 crore. The deposit period for the regular FD scheme ranges from 7 days to 10 years.
Furthermore, PNB offers a diverse range of fixed deposit schemes in addition to regular FDs such as PNB Uttam Non-Callable Deposit Scheme, Annuity Term Deposit Scheme, Capital Gain Account Scheme, Multi-Benefit Term Deposit, and Tax Shield Fixed Deposit Scheme.
Read on for more details about PNB fixed deposit interest rates 2023 among other FD products and their features and benefits.
PNB Fixed Deposit Interest Rate 2023 Highlights
Here are the highlights of PNB fixed deposit interest rate 2023:
| Interest Rate* | 3.5% – 7.25% for general public4% – 7.75% for senior citizens4.3% -8.05% for super senior citizens |
| Tenure | 7 days – 10 years |
| Minimum Deposit | ₹100 (May vary across schemes) |
| Maximum Deposit | ₹100 crore (May vary across schemes) |
| Lock-in Period | 7 days to 5 years (for Tax Shield FD) |
How to Calculate Punjab National Bank FD Interest Rate?
PNB fixed deposit interest can be calculated using two methods: simple interest and compound interest. Simple interest only considers the principal amount and interest rate agreed upon, while compound interest considers interest earned on both the principal and interest from previous periods.
1. Punjab National Bank FD Interest Rate – Simple Interest Calculation
To calculate simple interest, you can use this formula:
Simple Interest = (P * R * T) / 100
Where,
P = Principal amount
R = Rate of interest
T = Time (in years)
SI = Simple Interest
Now, let’s say you have invested ₹2,00,000 for a period of 5 years in a fixed deposit account that offers a simple interest rate of 5% per annum.
Therefore, Simple Interest = (2,00,000 * 5 * 5) / 100 = ₹50,000
Therefore, the interest earned on your FD will be ₹50,000 and the total amount you will receive at maturity will be:
Total amount = Principal + Interest = ₹2,00,000 + ₹50,000 = ₹2,50,000.
2. Punjab National Bank FD Interest Rate – Compound Interest Calculation
Now, for the compound interest method, the formula is:
A = P (1 + R / N) ^ (N * T)
Where,
A = The final amount
P = The principal amount
R = the annual interest rate
N = The number of times interest is compounded in a year
T = the number of years
Now, let’s say you invest the same amount in a fixed deposit with PNB at the same interest rate of 5% per annum for 5 years, compounded annually. At the end of the 5-year period, your investment will have grown to:
A = ₹2,00,000 (1 + 0.05 / 5) ^ (5 x 5)
A = ₹2,56,486.39
Therefore, Compound Interest = Maturity amount – Principal
= ₹2,56,486.39 – ₹2,00,000 = ₹56,486.39.
So, at the end of 5 years, you will earn ₹56,486.39 in interest, making your total investment worth ₹2,56,486.39.
As you must have observed, the amount derived from compounding the principal value is ₹6,486.39 more than the one derived by using simple interest. This is because the interest is calculated on both the principal and the accumulated interest while calculating the compounded amount.
However, for faster and accurate calculations, you may consider using the Navi FD Calculator. Just enter the FD investment amount, rate of interest and the tenure, and the calculator would show you the FD returns instantaneously!
Calculate Punjab National Bank Fixed Deposit Interest Rate
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Factors that Affect Punjab National Bank Fixed Deposit Rate
The following are some factors that may impact the PNB FD interest rates:
1. Changes in Repo Rates
The Reserve Bank of India sets the repo rate, which is the interest rate at which commercial banks can borrow money from it. If the RBI increases the repo rate, banks must pay more, and this cost is often passed on to customers, causing fixed deposit rates to rise in response, and vice versa.
2. Fixed Deposit Tenure
Banks generally offer higher interest rates on FDs for longer tenure as they get to use the funds for an extended period. For instance, Punjab National Bank fixed deposit rate for a 90-day investment below ₹2 crore is 4.50% for the general public, while the rate for a 10-year investment is 6.50%, resulting in better returns for investors. However, rates are subject to fluctuations depending on market conditions and bank policies.
3. Age
Senior citizens and super senior citizens above the age of 60 and 80, respectively, can avail higher fixed deposit (FD) interest rates from the Punjab National Bank. As they are often retired and rely on FDs for their expenses, PNB offers them additional interest rates of around 0.5%. However, FD rates for senior citizens may vary among different banks based on their policies and market conditions.
4. Economic Condition
Market interest rates are intricately linked to a country’s economic conditions, as fiscal deficits and inflationary pressures can cause interest rates to soar. Moreover, interest rate changes and fluctuations in foreign exchange rates in other nations can also impact interest rates in India. PNB fiscal policies monitor these economic indicators to ensure that interest rates remain stable and sustainable.
Punjab National Bank Fixed Deposit Rates for the General Public
Punjab National Bank tailors its fixed deposit interest rates based on investment tenures, deposit amounts, and age groups. Here’s a table listing PNB fixed deposit interest rates for the general public applicable for 2023 categorised under deposit below and above ₹2 crore:
| Maturity Period | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 7 – 14 days | 3.5% | 5.5% |
| 15 – 29 days | 3.5% | 5.5% |
| 30 – 45 days | 3.5% | 5.5% |
| 46 – 90 days | 4.5% | 5.5% |
| 91 – 179 days | 4.5% | 6% |
| 180 – 270 days | 5.5% | 6.25% |
| 271 – 364 days | 5.8% | 6.25% |
| 1 year | 6.8% | 6.75% |
| 1 year+ – 2 years | 6.8% | 6.5% |
| 2 years – 3 years | 7% | 6.5% |
| 3 years – 5 years | 6.5% | 6.25% |
| 5 years – 10 years | 6.5% | 5.6% |
Note
lease note that for FD tenure of 666 days the interest rate is 7.25%, while for tenure within 1 year to 665 days, the interest is 6.80%. Data taken from the bank website on April 11, 2023.
Also Read
Punjab National Bank FD Interest Rate for Senior Citizens
PNB senior citizen schemes allow people above 60 years to benefit from additional interest rates on top of the standard applicable interest rates. However, this is only applicable to deposits below ₹2 crore. Follow the table below to find the updated interest rates for senior citizens on deposits above and below ₹2 crore:
| Maturity Period | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 7 – 14 days | 4% | 5.5% |
| 15 – 29 days | 4% | 5.5% |
| 30 – 45 days | 4% | 5.5% |
| 46 – 90 days | 5% | 5.5% |
| 91 – 179 days | 5% | 6% |
| 180 – 270 days | 6% | 6.25% |
| 271 – 364 days | 6.3% | 6.25% |
| 1 year | 7.3% | 6.75% |
| 1 year+ – 2 years | 7.3% | 6.5% |
| 2 years – 3 years | 7.5% | 6.5% |
| 3 years – 5 years | 7% | 6.25% |
| 5 years – 10 years | 7.3% | 5.6% |
Note
Please note that for FD tenure of 666 days, the interest rate is 7.75%, while for tenure within 1 year to 665 days, the interest is 7.30%. Data taken from the bank website on April 11, 2023.
PNB Fixed Deposit Interest Rate for Super Senior Citizens
Here’s a list of current PNB fixed deposit schemes for super senior citizens (i.e. investors above the age of 80 years) amounting below ₹2 crore.
| Maturity Period | Interest on Deposits Below ₹2 Crore |
| 7 – 14 days | 4.3% |
| 15 – 29 days | 4.3% |
| 30 – 45 days | 4.3% |
| 46 – 90 days | 5.3% |
| 91 – 179 days | 5.3% |
| 180 – 270 days | 6.3% |
| 271 – 364 days | 6.6% |
| 1 year | 7.6% |
| 1 year+ – 665 days | 7.6% |
| 666 days | 8.05% |
| 667 days – 2 years | 7.6% |
| 2 years+ – up to 3 years | 7.8% |
| Above 3 years – up to 5 years | 7.3% |
| Above 5 years – up to 10 years | 7.3% |
Punjab National Bank FD Interest Rate for NRI
Punjab National Bank offers multiple Fixed Deposit (FD) schemes for Non-Resident Indians (NRI). Some Punjab National Bank fixed deposit schemes for NRIs are as follows:
- NRO (Non-Resident Ordinary)
- NRE (Non-Resident External) FD
- FCNR (Foreign Currency Non-Resident) FD
1. Punjab National Bank NRO FD Interest Rate
NRO account stands for Non-Resident Ordinary account. It allows NRIs to efficiently manage their income generated in India via pension, rent, dividend or interest. Furthermore, NRIs can open a PNB NRO FD account either individually or jointly with residents or other non-residents.
1. The PNB NRO FD Interest Rates are as Follows
| Maturity Period | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 7 – 14 days | 3.5% | 5.5% |
| 15 – 29 days | 3.5% | 5.5% |
| 30 – 45 days | 3.5% | 5.5% |
| 46 – 90 days | 4.5% | 5.5% |
| 91 – 179 days | 4.5% | 6% |
| 180 – 270 days | 5.5% | 6.25% |
| 271 – 364 days | 5.8% | 6.25% |
| 1 year | 6.8% | 6.75% |
| 1 year+ – 2 years | 6.8 % | 6.5% |
| 2 years – 3 years | 7% | 6.5% |
| 3 years – 5 years | 6.5% | 6.25% |
| 5 years – 10 years | 6.5% | 5.6% |
Note
Please note that for FD tenure of 666 days the interest rate is 7.25%, while for tenure within 1 year to 665 days, the interest is 6.80%. Data taken from the bank website on April 11, 2023.
2. Punjab National Bank NRE FD Interest Rate
An NRE account, which stands for Non-Resident External account, is a specialised banking service in India that permits non-resident Indians to deposit their overseas income. Essentially, NRIs can place funds in a foreign currency, such as the US Dollar, Japanese Yen, Euro, etc. within the NRE account and then conveniently withdraw it in Indian Rupees.
The table below provides an overview of PNB FD interest rates for NREs, for deposits above and below ₹2 crore.
| Maturity Period | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 1 year | 6.75% | 6.75% |
| 1 year to 665 days | 6.75% | 6.5% |
| 666 days | 7.25% | 6.5% |
| 667 days – 2 years | 6.75% | 6.5% |
| 2 years – 3 years | 6.75% | 6.5% |
| 3 years – 5 years | 6.5% | 6.25% |
| 5 years – 10 years | 6.5% | 5.6% |
3. Punjab National Bank FCNR Rates
As an NRI, you can now maintain a fixed deposit in India, denominated in popular currencies like USD, EUR, and more. A foreign currency non-resident (FCNR) account allows you to hold foreign currency in India.
By choosing to open an FCNR fixed deposit account at PNB, you can enjoy the benefits of secure and hassle-free savings. All this while effectively mitigating the risk of currency fluctuations.
The table below provides an overview of PNB FD interest rates for FCNR accounts.
| Maturity Period | USD* | GBP* | EUR* | JPY | CAD | AUD |
| 1 year – 2 years | 5.58% | 4.78% | 2.39% | 0.01% | 4.3% | 3.85% |
| 2 years – 3 years | 4.58% | 2.68% | 2.39% | 0.04% | 4.1% | 3.85% |
| 3 years – 4 years | 4.58% | 2.68% | 2.39% | 0.04% | 3.8% | 3.4% |
| 4 years – 5 years | 4.58% | 2.68% | 2.39% | 0.04% | 3.8% | 3.4% |
| 5 years | 4.58% | 2.68% | 2.39% | 0.04% | 3.8% | 3.4% |
Punjab National Bank VS Other Banks’ FD Interest Rate
Let’s take a peek at how PNB’s FD interest rates stack up against other commercial banks’ rates for deposits under ₹2 crore. We’ll be analysing rates for both the general public and senior citizens in this comparison.
| Name of the Bank | Maturity Period | Interest Rate Range |
| Central Bank of India | 7 Days to 10 Years | 4.00% to 7.25% |
| State Bank of India | 7 Days to 10 Years | 3.00% to 7.50% |
| Karnataka Bank | 7 Days to 10 Years | 4.5% to 7.80% |
| Union Bank of India | 7 Days to 10 Years | 3.00% to 7.80% (0.5% higher for senior citizens) |
| Bank of Baroda | 7 Days to 10 Years* | 3.00% to 7.55% |
| Punjab National Bank | 7 Days to 10 Years | 3.50% to 8.05% |
| Bank of India | 7 Days to 10 Years | 3.00% to 7.65% |
| Citibank | 7 Days to 10 Years | 3.50% to 8.01% |
| Bandhan Bank | 7 Days to 10 Years | 3.00% to 8.50% |
| IDFC First Bank | 7 days to10 years | 3.50%-7.75% |
| Indian Overseas Bank | 7 Days to 10 Years | 4.30% to 7.75% |
| Deutsche Bank | 7 days to 5 years | 3% to 7.75% |
| HDFC Bank | 7 Days to 10 Years | 3.00% to 7.75% |
| Axis Bank | 7 Days to 10 Years | 3.50% to 8.01% |
| ICICI Bank | 7 Days to 10 Years | 3.00% to 7.60% |
| Kotak Mahindra Bank | 7 Days to 10 Years | 2.75% to 7.70% |
| Paytm Payments Bank | 7 days to 1 year | 2.75% to 5.5% |
| Yes Bank | 7 Days to 10 Years | 3.25% to 8.00% |
| DBS Bank | 7 days to 5 years and above | 2.5% to 8% |
| IndusInd Bank | 7 Days to 10 Years | 3.25% to 8.25% |
| RBL Bank | 7 Days to 20 Years | 3.50% to 8.30% |
| Sundaram Finance | 12 months to 36 months | 7.45% to 8.25% |
| Canara Bank | 7 Days to 10 Years | 4.00% to 7.75% |
| Punjab and Sind Bank | 7 Days to 10 Years | 2.80% to 7.60% |
| IDBI Bank | 7 Days to 10 Years | 3.00% to 7.25% |
| HSBC | 7 Days to 5 Years | 2.85% to 8.00% |
| Indian Bank | 7 Days to 5 Years | 2.80% to 6.70% |
| Federal Bank | 7 Days to 2223+ Days | 3.00% to 7.75% |
Features and Benefits of Punjab National Bank Fixed Deposit
Some of the features and benefits of Punjab national Bank Fixed Deposit are as follows:
- The extra interest rate available to domestic deposits for senior and super senior citizens is a tempting incentive. However, it is not extendable to NRO deposits.
- FD account holders can avail premature withdrawal facility for every type of term deposit, except non-callable term deposits.
- The Tax Saver Fixed Deposit Scheme at PNB offers an additional interest rate to their employees, which is 1% higher than the rate given to the general public.
- You can seek a loan against your PNB fixed deposit. Furthermore, PNB offers options for joint account holding and nominations.
- Fixed deposits of 666 days’ tenure usually offer the highest applicable interest rates across FD categories
- PNB offers an auto-renewal facility for FDs to ensure convenience and continuity of interest for customers on maturity
- Super senior citizens, in addition to senior citizens, get preferential rates when they invest in PNB FDs
Different Types of Punjab National Bank FD Schemes
Punjab National Bank provides a variety of fixed deposit schemes for both Indian residents and NRIs, including:
- Annuity Term Deposit Scheme for Victims of Road Accidents
- PNB Uttam – Non-Callable Deposit Scheme
- PNB Anupam Term Deposit Scheme
- PNB Multi Benefit Term Deposit Scheme
- PNB Special Term Deposit Scheme
- PNB Sugam Term Deposit Scheme
- PNB Ordinary Term Deposit Scheme
- PNB Tax Shield Fixed Deposit Scheme
- PNB Pranam Fixed Deposit Scheme
- PNB Mibor Linked Notice Deposit Scheme
- PNB Growth Fixed Deposit Scheme
- PNB Bulk Fixed Deposit Scheme
- PNB NRE Rupee Sugam Term Deposit Scheme
- PNB NRO Sugam Term Deposit Scheme
Please note that most of the interest rates mentioned below are for investment amounts less than ₹2 crore.
1. Annuity Term Deposit Scheme for Victims of Road Accidents
- Minimum FD Amount: ₹1,000
- Maximum FD Amount: No upper limit
- Interest Rate: 6.5%
- Tenure: 3 years to 10 years
- Eligibility criteria: Individuals including minors under supervision of their legal guardian
2. PNB Uttam – Non-Callable Deposit Scheme
- Minimum FD Amount: ₹15 lakh
- Maximum FD Amount: No upper limit
- Interest Rate: 4.55% to 7.30%
- Tenure: 91 days to 10 years
- Eligibility criteria: Individuals, minors under supervision of their legal guardian, proprietorship, Hindu Undivided Family (HUF), any society, Municipality or Panchayat and illiterate or blind people
3. PNB Anupam Term Deposit Scheme
- Minimum FD Amount: ₹10,000
- Maximum FD Amount: ₹1,99,99,000
- Interest Rate: 5.50% to 7.25%
- Tenure: 6 months to 10 years
- Eligibility criteria: Individuals, proprietorship, company or trust
4. PNB Multi Benefit Term Deposit Scheme
- Minimum FD Amount: ₹100
- Maximum FD Amount: ₹1,99,99,999
- Interest Rate: 5.50% to 7.25%
- Tenure: 6 months to 10 years
- Eligibility criteria: Individuals, minor above 10 years of age, proprietorship, any commercial organisation, HUF
5. PNB Special Term Deposit Scheme
- Minimum FD Amount: ₹ 1,000
- Maximum FD Amount: ₹1,99,99,000
- Interest Rate: 6.80% to 7.25%
- Tenure: 1 year to 10 years
- Eligibility criteria: Individual, Minor above 10 years of age, proprietorship, any commercial organisation, HUF, illiterate or blind people
6. PNB Sugam Term Deposit Scheme
- Minimum FD Amount: ₹ 10,000
- Maximum FD Amount: up to ₹100 crore
- Interest Rate: 4.50% to 7.25% (for deposits under 2 crore), 5.50% to 6.75% (for deposits above 2 crore)
- Tenure: 46 days to 10 years
- Eligibility criteria: Individual, Minor above 10 years of age, proprietorship, any commercial organisation, HUF, illiterate or blind people
7. PNB Ordinary Term Deposit Scheme
- Minimum FD Amount: ₹ 100
- Maximum FD Amount: ₹1,99,99,999
- Interest Rate: 3.5% to 4.5%
- Tenure: 7 days to 179 days
- Eligibility criteria: Individual, Minor above 10 years of age, proprietorship, charitable institution, HUF, illiterate or blind people
8. PNB Tax Shield Fixed Deposit Scheme
- Minimum FD Amount: ₹ 100 per year
- Maximum FD Amount: ₹1.5 lakh per year
- Interest Rate: 6.5%
- Tenure: 5 years lock in period
- Eligibility criteria: Individual, Minors (in case of joint account), HUF
9. PNB Pranam Fixed Deposit Scheme
- Minimum FD Amount: ₹ 100
- Maximum FD Amount: ₹1,99,99,999
- Interest Rate: 6.50% to 7.25%
- Tenure: 1 year to 10 year
- Eligibility criteria: Individuals 55 and 55+ years old
10. PNB Mibor Linked Notice Deposit Scheme
- Minimum FD Amount: ₹ 10 crore
- Maximum FD Amount: No upper limit
- Interest Rate: 3.5% to 4.5%
- Tenure: 7 days to 60 days
- Eligibility criteria: High Net Individuals, any corporate body, Public Sector Undertaking, and commercial organisation.
11. PNB Growth Fixed Deposit Scheme
- Minimum FD Amount: ₹ 2 crore
- Maximum FD Amount: ₹10 crore
- Interest Rate: 3.5% to 6.5%
- Tenure: 7 days to 10 years
- Eligibility criteria: Individuals, minors above the age of 10, HUF, proprietorship, educational or charitable institutions, municipal body, panchayat and illiterate or blind people.
12. PNB Bulk Fixed Deposit Scheme
- Minimum FD Amount: ₹2 crore (for interbank deposit), ₹10 crore (for single deposit)
- Maximum FD Amount: Not Applicable
- Interest Rate: 3.5% to 6.5%
- Tenure: 7 days to 10 year
- Eligibility criteria: Individuals, minors above the age of 10, HUF, proprietorship, educational or charitable institutions, municipal body, panchayat and illiterate or blind people.
13. PNB NRE Rupee Sugam Term Deposit Scheme
- Minimum FD Amount: ₹10,000
- Maximum FD Amount: No upper limit
- Interest Rate: 6.75 to 6.5%
- Tenure: 1 year to 10 year
- Eligibility criteria: NRI Individuals or joint account holders
14. PNB NRO Sugam Term Deposit Scheme
- Minimum FD Amount: ₹10,000
- Maximum FD Amount: ₹10 crore
- Interest Rate: 3.5% to 6.5%
- Tenure: 46 days to 10 years
- Eligibility criteria: Any Non-Residential Indian or person of Indian origin.
Also Read
How to Invest in Punjab National Bank FD?
Here are the steps to open a fixed deposit account at Punjab National Bank:
Step 1: To open a PNB fixed deposit account online, you will either have to download the PNB One mobile app, or visit their official net banking website
Step 2: Subsequently, log in to either one of the portals by entering your login credentials (your username and password)
Step 3: If you are using PNB mobile banking app, you will find the Open Fixed Deposit option on the homepage. If you are using the web portal, find the Deposits option in the menu bar and select ‘Fixed Deposit’ from the drop-down menu.
Step 4: After completion of the above step, accept the terms and condition checkbox. You will be redirected to the application form. Enter the type of FD account you would like to invest in, the amount and a suitable tenure. Do ensure to add all other information as required and specified in the online application form.
Step 5: While filling out the application form, you will also have to specify the account from which you would like to pay for the deposit.
Step 6: After completing the above mentioned step, confirm and submit your application.
Step 7: You will be required to enter your transaction password or T-PIN to confirm payment, and the specified deposit amount will be deducted from your savings.
Note: If you do not already have a savings account with PNB, you will have to open a fresh account by completing your KYC compliances.
Documents Required to open Punjab National Bank FD
The documents required for opening a PNB FD account are as follows:
- Identification Proof: You can present either your Aadhaar, PAN, Voter ID, Driving License, Government issued ID, or employer ID as proof of your identity.
- Address Proof: Address verification will require either your Aadhaar, any utility bill including electricity, telephone bill, LPG supply, etc., ration card, bank statement, or a confirmation letter from any authorised local or government body.
- Date of Birth Proof: Some PNB FD schemes allow minors to open an FD account. However, they will have to present their respective DOB certificate for verification. Furthermore, senior and super-senior citizens also have to establish their age to claim additional interest rates on their fixed deposits.
- Additionally, you will require two coloured passport-sized photographs, if applying offline.
Eligibility to Open Punjab National Bank FD
The eligibility criteria to open an FD account with Punjab National Bank are as follows:
- PNB offers several fixed deposit schemes that have distinct eligibility criteria. However, in general, any individual, minor HUF, Company, charitable organisation or trust, municipality, panchayat, illiterate or blind people, HNI can open an FD account with PNB.
- Minors are eligible to open an FD account under supervision and guidance from their legal guardian. Please note that this may vary for different FD schemes.
- Some PNB FD schemes facilitate illiterate or blind people to open an FD account.
- PNB FD accounts can be operated and managed by multiple account holders. In other words, you can jointly own an FD account.
- NRIs are also eligible for certain types of FD investments with the Punjab National Bank.
Taxation on Punjab National Bank FD Deposit Scheme
Follow the section below to find the tax liabilities on fixed deposit income:
- The Income Tax Act, of 1961 considers the returns on fixed deposits as income from other sources; as a result, it is fully taxable. The FD returns are added to your total income and are taxed based on the prevailing tax rates.
- Post April 2019, interest earned above ₹40,000 in a financial year is taxed at 10% for account holders who have linked their PNA card, whereas 20% for those who haven’t. These taxes are deducted at the source by the bank and not when you receive the interest. For senior citizens, the limit is extended up to ₹50,000.
- By applying for the PNB tax saving term deposit scheme, you can avail tax deductions of up to ₹1.5 lakh as per Section 80C of the Income Tax Act.
- If your overall income does not fall under taxable income or is lower than the minimum taxable amount, you can submit form 15G or 15H to claim tax deductions.
Loan Against Punjab National Bank FD Deposit Scheme
Punjab National Bank account holders can opt for overdraft or loan against term deposit. This way they can avail secured loans at minimal interest rates. Most account holders are now leaning towards overdraft facilities as an alternative to personal loans.
Some distinct features of loan or overdraft facilities against fixed deposits are as follows:
- At PNB, you can request for a minimum overdraft amount of ₹25,000, whereas the maximum amount you can avail is 100 lakh.
- The PNB Sugam Deposit scheme allows a maximum overdraft limit of ₹100 lakh (general deposit schemes) and ₹500 lakh (only in case of Sugam Deposit). The maximum loan period is 3 years or residual period, whichever is lower.
- Applying for a loan against your fixed deposit would mean that the FD account will be considered collateral. However, you will still earn interest on the deposit account until you clear your dues.
- You can either access the online PNB internet portal or PNB One app to apply for a loan or overdraft against your deposit. You can also visit your nearest branch to request this service.
Final Word
Punjab National Bank fixed deposit rates are some of the highest available in the country, especially for senior and super senior citizens. Furthermore, you get to choose from a plethora of FD schemes available as per your eligibility and financial requirement. However, premature withdrawal of domestic term deposits will levy a penalty of 1% penal interest rate. Also, keep in mind that tax on FD returns could further reduce the real rate of return.
FAQs
No, if your deposit states either “either or survivor” or “former or survivor”, you will be eligible for a premature withdrawal without paying any penal interest rates. Furthermore, if there is a joint mandate from participating depositors, you do not have to take permission from the deceased joint depositor’s family or legal heir.
Yes, you can withdraw any amount in the multiple of ₹1000 from your overall deposit without breaking the entire FD. However, the residual amount should not drop below ₹10,000, as in the case of the PNB Sugam Term Deposit Scheme.
All senior citizens, super senior citizens, retired employees and current staff members can avail of additional interest of 0.5% to more than 1.5% in some cases.
Yes, if you hold a PNB FD account jointly, you can edit the nominees by visiting the online PNB Internet banking portal or via PNB One mobile app.
Form 15G and 15H can be used to request banks not to deduct TDS from the earned interest if you are not liable to pay taxes. If you are below 60 years, you will have to submit Form 15G, whereas senior citizens above 60 years have to submit Form 15H.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
