Punjab National Bank (PNB), is well-known for providing a variety of financial services and products. Among its products, Fixed Deposits (FDs) are still a well-liked option for anyone looking for a reliable and safe way to invest. Prospective investors and account holders are eager to learn more about the current PNB FD interest rates as 2024 approaches. These rates, which are periodically adjusted based on monetary policy and market conditions, are crucial in determining returns on investment.
PNB Bank FD Rates 2024
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7 days to 14 days
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3.50%
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4.00%
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15 days to 29 days
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3.50%
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4.00%
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30 days to 45 days
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3.50%
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4.00%
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46 days to 90 days
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4.50%
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5.00%
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91 days to 179 days
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4.50%
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5.00%
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180 days to 270 days
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5.50%
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6.00%
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271 days to less than a year
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5.80%
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6.30%
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1 year
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6.75%
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7.25%
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above 1 year to 443 days
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6.80%
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7.30%
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444 days
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7.25%
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7.75%
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445 days to 665 days
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6.80%
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7.30%
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666 days
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7.05%
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7.55%
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667 days to 2 years
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6.80%
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7.30%
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Above 2 years and up to 3 years
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7.00%
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7.50%
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Above 3 years and up to 5 years
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6.50%
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7.00%
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Above 5 years and up to 10 years
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6.50%
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7.30%
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Features of PNB Fixed Deposit
1. Flexible Tenure Options: Fixed deposits usually provide a range of tenure options, so you can select a time frame that works for your budget. PNB may provide terms that from a few months to several years long.
2. Minimum Deposit Amount: To start a fixed deposit account with PNB, a minimum deposit is often needed. Depending on the type of fixed deposit, this amount could change.
3. Interest Payment Frequency: PNB offers options for monthly, quarterly, or maturity interest payout frequencies. The total returns may vary depending on the frequency selected.
4. Option for Automatic Renewal: If you don’t give instructions, certain fixed deposits have an auto-renewal feature that lets your deposit be automatically renewed for the same term at the current interest rates.
Benefits of PNB Fixed Deposit
1. Stable Returns: Fixed deposits are a cautious investing choice since they provide steady, guaranteed returns over the designated period of time.
2. Safety and Security: Since PNB is a government-owned bank, fixed deposits typically have an additional layer of protection. Generally, the Deposit Insurance and Credit Guarantee Corporation (DICGC) insures deposits in fixed accounts up to a specific amount.
3. No Market Risks: Fixed deposits are not prone to market swings, in contrast to stock or mutual fund investments. The returns are assured and predictable.
4. Tax Benefits: In most cases, interest on fixed deposits is subject to taxes. Nonetheless, under Section 80C of the Income Tax Act, certain fixed deposit plans could provide tax advantages.
Types of PNB Bank FD Schemes
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This is a typical fixed deposit plan that allows users to deposit a lump sum amount and earn a fixed rate of interest over a predetermined period of time.
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There is a five-year lock-in period on this fixed deposit plan. Section 80C of the Income Tax Act may allow tax deductions for deposits made under this programme.
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The withdrawal and early closure policies of this plan are intended to be flexible. Features like loans against the deposit and partial withdrawal might be available.
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For a restricted time, PNB may provide special term deposit plans with exclusive features or advantages. These might be marketing campaigns.
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Senior citizens may be eligible for special interest rates under the Anupam Term Deposit Scheme.
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This plan might pay out interest on a monthly basis to give investors a steady stream of income.
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The depositor of this kind of plan can get regular interest payments, creating a reliable source of income.
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How to Invest in PNB FD?
1. Check Out the Closest PNB Location: Find the closest branch of Punjab National Bank. PNB has a significant number of branches all over India.
2. Verify Documentation and Eligibility: Make sure you are qualified to open a PNB fixed deposit account by checking the eligibility requirements. Individuals, joint account holders, minors (under the supervision of a guardian) and senior residents are usually qualified. Assemble the required paperwork, such as identity and residence verifications and recent passport-sized photos.
3. Select the FD Type: PNB provides a range of fixed deposit plans, each with unique characteristics and advantages. Choose a fixed deposit (FD) that best meets your financial objectives, whether it be a normal FD, a tax-saving FD or a special scheme.
4. Complete the Application Form: Get the bank’s application for a fixed deposit. Accurately enter all necessary information, such as the tenure, deposit amount and any further special instructions.
5. Provide in the documents and application: Send the bank the completed application form and the required paperwork. Make sure you have all the necessary KYC (Know Your Customer) documentation, including your passport, Aadhaar card, PAN card and any other paperwork the bank specifies.
6. Deposit the Amount: Make the fixed deposit payment in the amount specified. Depending on the type of fixed deposit, there may be a minimum deposit amount.
7. Obtain the FD Receipt: Upon completion of the application, you will receive an FD certificate or receipt from the bank. Information like the deposit amount, term, interest rate and maturity date are all included in this document.
8. Select the Interest Payment Frequency, if any: If the FD plan permits regular interest payments (monthly, quarterly, etc.), make sure to indicate your choice when the FD is opened.
9. Keep a close eye on and secure the FD receipt: Store the FD receipt in a secure location. It is evidence of your financial commitment. Keep an eye on interest payments and the maturity date.
Eligibility to Open an PNB FD Account
1. Individuals: Both citizens and non-residents may open individual accounts with the majority of FD schemes. Additionally, minors may open joint FD accounts with their guardians or parents.
2. Joint Account Holders: A joint account can be opened by two or more people. There may be business partners or family members among the joint account holders.
3. Hindu Undivided Family (HUF): HUFs can open bank FD accounts.
4. Associations and Trusts: Opening FD accounts may be possible for trusts, associations and other non-individual entities, provided that they meet certain conditions and provide the necessary paperwork.
5. Senior Individuals: Seniors can benefit from special FD plans offered by banks and those who reach a particular age may be entitled for discounted interest rates.
6. Business Organizations: Companies and partnerships, among other corporate entities, may choose to open FD accounts with their excess funds.
7. Non-Resident Indians (NRIs): Under certain criteria and restrictions, NRIs can open NRE (Non-Resident External) or NRO (Non-Resident Ordinary) FD accounts.
Documents Required to Open PNB FD
Identity proof such as voter ID, driver’s license, passport, Aadhaar card, PAN card, etc. Proof of address such as Rent agreement, utility bills, passport, Aadhaar card, voter ID, etc and a couple recent passport-size photos. PAN Card is required for the means of identification and for income tax purposes. Some extra documents can be needed, depending on the account type and the account holder.
Tax on PNB Fixed Deposit
1. Interest Income Taxation: An individual’s total income for the current year includes interest income received from fixed-rate notes (FDs).
2. Tax Deducted at Source (TDS): If interest earned surpasses a certain amount, banks, including PNB, are obligated to deduct Tax Deducted at Source (TDS). The total interest income and the investor’s PAN status determine the TDS rate.
3. TDS Limits: According to the Income Tax Act, TDS is due whenever the total interest income from all of a bank’s FDs reaches ₹40,000 (or ₹50,000 for senior individuals) in a given financial year. This barrier only applies to non-senior citizens whose total income is more than the baseline exemption level.
4. Taxes for Non-Resident Indians (NRIs): The TDS rate may differ from that for resident Indians, and NRIs may be subject to differing tax consequences on FD interest income.
5. Tax-Saving Fixed Deposits: Under Section 80C of the Income Tax Act, FDs with a five-year lock-in duration are eligible for tax benefits. The interest income is still taxable, though.
6. Tax on Premature Withdrawals: If an FD is withdrawn prior to its maturity date, it may be subject to penalties and tax on the interest that has been generated up to that time.
7. Reporting in Income Tax Returns (ITR): People must include information about interest earned from FDs in their ITRs.
Loan Against PNB FD
1. Visit the Bank: Go to the PNB branch where your fixed deposit is located.
2. Request and Eligibility Verification: Check your eligibility and ask questions on the loan against the FD facility. The FD amount, duration and other related factors will be evaluated by the bank.
3. Application Document: Complete the loan application form by entering all required information.
4. Record-keeping: Send in the necessary paperwork, such as the KYC and FD receipts.
5. Approval of Loan: After reviewing your application, the bank will decide on the loan amount, interest rate and period if it is authorized.
6. Payment: Upon approval, the loan amount is either credited to your account or, if you choose, sent as a demand draft.
7. Repayment: Monthly installments are typically used for repayment. The EMI could be immediately taken out of your linked account by the bank.
Closure of PNB Fixed Deposit (Fees and Penalty)
1. Penalties and Charges: PNB has the right to impose penalties for early FD closure. Typically, the penalty is stated as a percentage of the interest rate that would have applied throughout the initial term.
2. Minimum Time of Lock-in: FDs often have a minimum lock-in time, during which early withdrawals are prohibited. An early withdrawal of the deposit may result in a penalty.
3. Computing the Penalty: The original tenure and the amount of time the FD has been held are frequently used to compute the penalty. The way that each bank calculates the penalty may differ.
4. Terms and FD Type: The type of FD and the particular terms and circumstances of the FD scheme may have an impact on the penalty.
Example:
- Suppose you opened a 2-year FD but decide to prematurely withdraw it after 1 year.
- The bank might apply a penalty, reducing the interest rate applicable for a 1 year deposit instead of the original 2-year rate.
- The penalty percentage and calculation method will depend on PNB’s policies at the time of premature closure.
FAQs
1. Does PNB offer older citizens special FD rates?
Answer:
Indeed, PNB provides seniors with a special interest rate.
2. Is it possible to fund the fixed deposit account with more money?
Answer:
You can open a new fixed deposit at any time now.
3. Is a PAN card required when submitting an application for a direct deposit scheme?
Answer:
Yes, in order to open a PND fixed deposit, you must present your PAN card.
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