PNB FD Interest Rates

Punjab National Bank is an Indian Banking company and also called India’s first Swadeshi Bank. It has a network of 10925 branches, 13914 ATMs across India, and an overseas presence in 6 Countries.

Punjab National Bank provides multiple fixed deposit options to its customers with interest rates in the range of 3.00% p.a.- 5.25% p.a. The depositor is allowed to deposit a certain deposit amount at the time of opening the account. Deposit and withdrawal of additional money are not allowed during the ongoing tenure. The money deposited in the FD account will be secured for the tenure chosen and PNB FD rates will be provided accordingly.

PNB FD Interest Rates 2024

Features and Benefits of PNB Fixed Deposit

• Tenure ranges from 7 months to 120 months (10 years)
• The highest interest rate provided on the PNB FD account is 6.30% p.a.
• Senior citizens get an additional interest of 0.50% over the regular rates
• The minimum deposit amount depends on the scheme chosen
• Nomination facility is provided by the bank
• Loan/overdraft facility is also provided by the bank
• PNB provides different term deposit options such as Scheme for road accident victims, Sugam Term Deposits, Multi-Benefit, Special, Ordinary, and Anupam Term Deposit Schemes.
• These FD schemes help to cater to a majority of classes

Types of PNB FD Schemes

• This scheme allows the depositor to make the investment to earn great returns with flexibility and security.
• Simple investments with great returns
• Nomination facility is available
• Overdraft facility can be availed up to 75% against the deposit
• Interest is paid at the time of maturity
• Resident Indian, HUFs, public or private companies, trusts, and partnership firms are eligible

• As the name suggests, this scheme is for providing funds for motor insurance claims to road accident victims.
• No loans/advances are allowed under this scheme.
• The depositor gets the option to choose between simple and compound interest.
• Auto-renewal facility in deposit is available.
• Any individual, HUFs, a public or private company, trusts, and partnership firm are eligible.

• This fixed deposit scheme provides greater flexibility to the account holders along with a higher rate of interest. Under this scheme, the depositor can withdraw smaller units of funds before maturity.
• Nomination facility is available
• Interest can be drawn on a monthly, quarterly, half-yearly, or yearly basis or on maturity
• Great flexibility is offered on your account
• Minors of 10 years and above under guardianship, HUFs, a sole proprietorship firm, and partnership firm

• Under this scheme, the depositor has an option to open an FD account that
• Inbuilt overdraft facility available
• The account can be opened with a minimum deposit of Rs. 10,000
• Tenure ranges from 6 months to 120 months
• Nomination facility is available
• Salaried or self-employed individuals of at least 18 years

• As the name implies, this fixed deposit scheme is made specially designed for girls who have passed 8th grade
• No loans/advance is allowed on these deposits
• These deposits have auto-renewal for 30 days
• Girl students who have passed 8th standard from Kasturba Gandhi Balika Vidyalayas and unmarried girls of not more than 16 years of age

• Under this scheme, multiple benefits are offered to the depositor along with higher interest rates.
• Loan/overdraft facility is provided up to 90% against the deposit.
• Nomination facility available.
• One can deposit as low as Rs. 100 to Rs. 99.99 lakhs into this account.
• Resident Indians, HUFs, partnership firms, trusts, corporations, government bodies, minors of 10 years of age and above.

• This deposit scheme allows customers to save their earnings with greater flexibility. The minimum deposit starts from Rs. 100.
• Interest is paid half-yearly calculated on a daily product basis.
• Nomination facility is available.
• Loan facility available up to 90% on the deposit.
• Resident Indians, HUFs, sole proprietorship, and partnership firm.

• Under this scheme, the interest is compounded quarterly and paid annually.
• Loan facility can be availed on this deposit up to 90% of the deposit amount.
• Nomination facility available.
• Interest is paid annually on a quarterly compound basis.
• Resident Indians, minors of 10 years of age and above, HUFs, sole proprietorship, and partnership firm.

• As the name suggests, this is a flexible and secure deposit scheme with dual benefits of tax exemption under section 80C and a great rate of returns.
• Loan facility can be availed on this deposit up to 90% of the deposit amount.
• Nomination facility is available.
• Rebate provided on Income Tax under section 80C

• As the name suggests, this scheme is designed for senior citizens that offer higher rates of interest as compared to accounts for regular citizens.
• Loan facility of up to 90% on the deposit is available
• Nomination facility is available
• Senior citizens of 60 years of age and above are eligible

• MIBOR linked notice deposit scheme provides the depositors a deposit product with a Market determined interest rate linked to MIBOR (Mumbai Inter-Bank Offer Rate) NSE Overnight.
• Auto-renewal facility is available on the deposit.
• The interest rate is linked to MIBOR with the daily reset.
• Once the spread is quoted for the day, there should not be any limit for acceptance of deposit under the scheme.
• Individuals with High net worth, companies/corporate bodies, public sector undertakings, and commercial organizations.

• Under this fixed deposit scheme, the depositor can deposit a single deposit of Rs. 10.00 crore into his/her fixed deposit account.
• Auto-renewal facility is not available on these deposits.
• Nomination facility is available.
• Loan or overdraft is available up to 90% on the deposit.
• Income option can range from 6 months to 120 months (10 years).
• Individuals and minors of 10 years of age and above, minors below 18 years of age under guardianship, HUFs, a sole proprietorship firm, a partnership firm

Term wise PNB Fixed Deposit Rates

For a PNB FD with tenure ranging from 7 days to 12 months, the interest rate offered is from 3.00% p.a. to 4.50% p.a. These deposits are known as short-term deposits as they have a tenure of less than 1 year.

Medium-term fixed deposits have tenures ranging from more than 1 year to less than 5 years. The interest offered by the bank on these deposits is around 5.50% - 5.75%

These deposits have a tenure ranging from 5 years to 10 years and offer an interest rate of 5.65%.

PNB vs Other Banks' FD Rates

How to invest in PNB FD?

A Punjab National Bank FD account can be opened through different modes like Mobile App, Internet Banking, and offline.

1) Internet Banking

Follow the below-mentioned steps for opening a Punjab National Bank FD account via internet banking-

• Sign in to the PNB NetBanking account.
• Choose the ‘Open Fixed Deposits’ option.
• Next, fill out all the necessary details, nominee information, and maturity instructions.
• Lastly, select for door-step assistance from the bank’s representative. Investors can submit their documents to the representative.
• The FD will get booked on verification and validation of the application form and KYC documents. The FD certificate will be sent to the communication address. A confirmation SMS will also be sent to the registered mobile number.

2) Mobile App - PNB Bank App

Follow the steps mentioned ahead to open an FD account via PNB Bank App-

• Download the PNB Bank App and sign in.
• Next, choose the ‘Open FD’ option.
• Fill out all the necessary deposit information, nominee details and opt for door-step assistance.
• A bank representative will visit for the complete verification.
• The FD will get booked on verification and validation of the application form and KYC documents. The FD certificate will be sent to the communication address. A confirmation SMS will also be sent to the registered mobile number.

3) Offline PNB FD Opening

For opening a PNB Bank FD account via offline mode, one has to visit the nearest PNB Bank branch. Fill out the PNB Bank FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD certificate will be dispatched by the PNB bank to the communication address. Also, one will receive an SMS confirmation on the registered mobile number.

Eligibility to Open a PNB FD Account

Individuals or entities falling under any of the following criteria can apply for a fixed deposit scheme from PNB –

1. Resident individuals
2. Non-resident Indians
3. Hindu Undivided Families
4. Sole proprietorship, partnership firms, public and private limited companies
5. Registered societies, trusts and associations

Documents Required to Open PNB FD

Documents that have to be submitted to open a Punjab National Bank Fixed deposit are –

1. Identification proof – Aadhaar card, Voter ID card, driver’s license
2. PAN card
3. Address proof – All related KYC documents as well as utility bills such as electricity bill and gas bill.
4. Passport-size photographs
5. Bank account statements

Tax on Punjab National Bank Fixed Deposit

An investment in Punjab National Bank Tax Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Punjab National Bank FDs entitle to tax saving under Section 80C of the Income Tax Act.

Also, note that the interest income from the Punjab National Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Punjab National Bank FD exceeds Rs. 40,000 p.a.

For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.

Loan Against Punjab National Bank FD

PNB provides loans against their Fixed Deposits. Investors can get up to 90% of the deposit amount as a loan against PNB Fixed Deposit. The rate of interest will be between 4% – 6.3%.

Premature Closure of Punjab National Bank Fixed Deposit

All Punjab National Bank Fixed Deposits can be withdrawn prematurely except for the tax-saving Fixed Deposit. Also, Punjab National Bank levies a 1% penalty on the interest for premature withdrawals. The penalty is subject to modification according to the terms and conditions of Punjab National Bank.

FAQs

Is the interest earned on fixed deposits taxed?

Yes, the interest earned on the FD is taxable if the total interest income is more than Rs. 10000 in a financial year.

What is the highest rate offered on FD by Punjab National Bank?

One can earn a maximum interest of 7.25% on the PNB fixed deposit.

What is the current interest rate PNB is offering on its FDs?

Current PNB FD rates range between 3.50% p.a. – 7.25% p.a. Senior citizens can avail interest rates ranging from 4.00% p.a – 7.75% p.a.

Is it possible to deposit an additional amount into the fixed deposit account?

No, depositing additional money into the FD account is not allowed as the money is deposited only at the time of opening the account.