Recurring Deposits (RDs) are a favored investment option for those looking to save regularly and earn assured returns. Punjab National Bank (PNB), one of India’s leading public sector banks, offers attractive RD schemes with competitive interest rates and flexible tenures. This guide delves into the details of Punjab National Bank RD interest rates, features, benefits, and more.
Punjab National Bank provides competitive interest rates on its Recurring Deposit schemes, ensuring that investors receive good returns on their regular savings. The rates vary based on the tenure of the RD and are periodically updated to match market conditions.
As of the latest update, the interest rates for Punjab National Bank Recurring Deposits are as follows:
| Tenure | Regular Interest Rate | Senior Citizen Interest Rate |
| 6 months to less than 1 year | 5.25% | 5.75% |
| 1 year to less than 3 years | 5.75% | 6.25% |
| 3 years to less than 5 years | 6.00% | 6.50% |
| 5 years to 10 years | 6.25% | 6.75% |
Note: These rates are indicative and subject to change. Please check with Punjab National Bank for the latest rates.
1. Flexible Tenure Options: Punjab National Bank (PNB) offers flexible tenure options for Recurring Deposits, ranging from 6 months to 120 months (10 years). This allows customers to select the tenure that aligns with their savings goals.
2. Low Minimum Deposit: PNB RD can be started with a minimum deposit of ₹100 per month, making it accessible for all income groups. There is no upper limit on the monthly deposit, giving flexibility to those who wish to save more.
3. Attractive Interest Rates: The bank offers competitive recurring deposit interest rates depending on the tenure selected. Typically, interest rates range from 6.00% to 7.00% p.a., with senior citizens receiving an additional 0.50% interest rate.
4. Nomination Facility: PNB provides a nomination facility where account holders can nominate someone to receive the RD proceeds in case of unforeseen events, offering peace of mind for your investment.
5. Premature Withdrawal: Although premature withdrawal is allowed in case of emergencies, it is subject to a penalty. You need to withdraw the entire RD amount as partial withdrawals are not permitted.
6. Loan Facility: You can avail a loan against your RD from Punjab National Bank. The bank allows loans or overdrafts of up to 90% of the deposited amount, ensuring you have access to funds without breaking the deposit.
7. Auto-Renewal Option: PNB offers the flexibility of auto-renewal upon maturity. You can choose to have your RD renewed for the same tenure, keeping your savings intact and continuing to earn interest.
You may also want to know about IDBI Bank RD Interest Rates
1. Safe and Secure Investment: A PNB RD is a low-risk investment, making it a safe option for individuals who want to grow their savings steadily without exposure to market volatility.
2. Disciplined Savings: Because you need to deposit a fixed amount every month, an RD encourages regular savings habits, helping you build a corpus over time with minimal financial strain.
3. Higher Interest for Senior Citizens: Senior citizens benefit from an additional 0.50% interest rate over the standard RD rates, making it an attractive option for retirees looking to earn higher returns on their savings.
4. Liquidity Through Loan Facility: In case of financial emergencies, you can easily avail a loan against the RD without breaking the deposit, thus ensuring liquidity while your savings continue to grow.
5. Flexible Deposits and Tenure: With a minimum deposit of ₹100 and the option to choose any tenure between 6 months and 10 years, PNB RD caters to both small and large savers, allowing you to customize the savings plan based on your financial goals.
6. No Upper Limit on Deposits: Unlike other investment schemes, there is no upper limit on how much you can deposit each month, offering flexibility to individuals who want to save more and earn better returns through compounding.
7. Easy Online Management: You can open and manage PNB RD accounts through PNB’s online banking platform, allowing you to conveniently track deposits and returns, update preferences, or make changes to the account.
You may also want to know about SBI RD Interest Rates
Opening a PNB Recurring Deposit (RD) account online is simple and convenient. Here’s a detailed guide on how to open an RD account with Punjab National Bank (PNB):
To start the process, log in to PNB Net Banking using your credentials or access the PNB mobile banking app. If you do not have net banking access, you can register online through the PNB website. This is essential to proceed with opening the PNB Recurring Deposit Scheme account.
Once logged in, go to the ‘Deposits’ section of your account dashboard. Here, you will find the option to open a recurring deposit account. Click on this option to initiate the process.
From the available deposit schemes, choose the PNB RD option. The bank offers a range of tenures from 6 months to 120 months (10 years), allowing you to select the period that aligns with your financial goals.
After selecting the tenure, enter the monthly deposit amount. The minimum deposit for the PNB recurring deposit scheme is ₹100, but you can opt for a higher amount based on your preferences. You must also specify if you want the deposit to be automatically debited from your linked savings account each month.
Before confirming, you can check the rate of interest applicable to your chosen tenure. PNB recurring deposit interest rates typically range from 6.00% to 7.00%, and senior citizens are eligible for an additional 0.50% on the standard rates.
During the RD setup process, the bank asks you to nominate a beneficiary who will receive the deposit in case of unforeseen events. You also decide whether to have the RD auto-renew at maturity or have the funds credited to your linked account.
Once you’ve entered all the required details, review the information carefully, including the monthly deposit amount, tenure, and rate of interest. Submit the form to set up your recurring deposit account. The bank will debit the first deposit from your linked account, with subsequent payments automatically deducted each month.
To help investors plan their savings better, PNB provides an RD calculator. This tool allows you to calculate the maturity amount based on the monthly deposit amount, tenure, and applicable interest rates.
Premature withdrawal of an RD is possible, but it comes with certain penalties. The penalty amount and the applicable interest rate for premature withdrawal will be based on the duration for which the deposit was held.
PNB provides the facility to avail a loan against your RD. This is beneficial in times of financial emergencies, as it allows you to borrow up to 90% of the deposit amount without breaking the RD.
Punjab National Bank Recurring Deposits are an excellent investment option for individuals looking to save regularly and earn attractive returns. With flexible tenures, competitive interest rates, and the convenience of online account opening, PNB RDs cater to the diverse financial needs of investors.
Whether you are saving for a specific goal or looking to build a disciplined saving habit, PNB RD is a reliable choice to grow your savings securely.
The minimum monthly deposit amount for a PNB RD is Rs. 100.
Yes, you can open a PNB RD account online through Internet banking.
The maximum tenure for a PNB RD is 10 years.
Yes, senior citizens are offered higher interest rates on PNB RDs.
Yes, premature withdrawal is allowed with applicable penalties.
Yes, you can avail of a loan of up to 90% of the deposit amount against your PNB RD.
While the interest earned is taxable, the deposit amount qualifies for deductions under Section 80C of the Income Tax Act, 1961.
The interest is compounded quarterly and added to the principal amount.
If you miss a monthly instalment, the interest for that month may not be credited, and penalties might be applied as per the bank’s policy.
Generally, the tenure cannot be changed once the RD account is opened. However, you can open a new RD with the desired tenure.
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