PNB, short for Punjab National Bank, offers excellent RD options to its customers with attractive rates. Punjab National Bank is a nationalized and second-largest public sector bank in India. One can choose their desired tenure and calculate the interest rate on the PNB RD by using the PNB RD calculator.

It helps you calculate the interest that your principal amount will earn by investing monthly in a Punjab National bank recurring deposit account. To check how much interest your recurring deposit will receive at the end of the tenure chosen, you have to provide the necessary details of your RD account, such as investment amount, tenure, and rate of interest.

**PNB RD Interest Rates**

Investment Tenure |
FD Rates for General Citizens |
FD Rates for Senior Citizens |

180 days – 270 days | 4.40% | 4.90% |

271 days – 364 days | 4.50% | 5.00% |

1 year | 5.20% | 5.70% |

1 year 1 day – 3 years | 5.20% | 5.70% |

3 years 1 day – 5 years | 5.30% | 5.80% |

5 years 1 day – 10 years | 5.30% | 5.80% |

Read more about PNB RD Interest Rates

**How to Calculate PNB Maturity Amount using PNB RD Calculator?**

You can calculate the maturity amount in a hassle-free manner by simply entering the key details pertaining to your RD account such as the monthly investment amount, tenure, the rate of interest rate and you will be provided with the maturity amount instantly. It’s that easy!

**Formula to Calculate Maturity Value on your Recurring Deposit**

The compound interest on a recurring deposit amount is added after the first quarter. The financial quarters in a year are given below:

- April to June – Quarter 1
- July to September – Quarter 2
- October to December – Quarter 3
- January to March – Quarter 4

The compounding takes place after each quarter; hence until then, a simple interest calculation is applicable. The formula used for calculating recurring deposit interest as provided by the Indian Bank Association is as follows-

**M=R[(1+i) (n-1)]/1-(1+i)(-1/3))**

- M denotes Maturity value
- R denotes Monthly Installment
- i denotes the rate of interest divided by 4
- n denotes the tenure (in quarters)

Let’s understand this with an example:

Suppose, Manish opens an RD account in PNB Bank with a monthly investment amount of Rs. 2000 for 2 years and the interest rate provided is 7%. If we put all the values in the above formula, we get –

**M **= 2000[(1+7/400)(8-1)]/1-(1+7/400)(-1/3)

**M **= Rs. 51,640

With the help of the PNB Recurring Deposit, calculating the interest on your RD takes a few clicks.

**Factors Affecting RD Earnings**

While determining the rate of interest for the depositor, certain factors are considered. Some of them are

**Tenure**

The duration for which you invest the money in a recurring deposit. The Interest rate your principal amount accumulated depends on various factors and tenure is one the most important ones. Your RD interest rate varies across all the tenure options.

**Age**

Banks and other financial institutions provide a higher rate of interest to senior citizens. The rates may vary from 0.50% to 0.75% additional interest over the regular deposit rates provided to general citizens.

**Current Economic Environment**

Banks that provide recurring deposits schemes keep on updating their interest rates with the changes in the economic conditions. For instance, the interest rates factor in inflation and change accordingly. Similarly, repo rate changes also have a bearing on RD interest rates.

**Repo Rate**

Repo rate is the rate at which commercial banks borrow from the Reserve Bank of India. A decline in the repo rate can lead to the banks bringing down their RD interest rate. This can, however, prove to be beneficial for retail loan borrowers.

**Benefits of Using PNB RD Calculator**

- No need to do hefty calculations to determine the maturity value of your RD
- Just a basic internet connection is needed and you are good to go
- Quick results which can help you decide the tenure for your RD at the time of account opening in just a few clicks

**PNB RD Calculator – Frequently Asked Questions**

**Ques. **What is the minimum deposit amount required to open a PNB RD account?

**Ans. **PNB accepts a minimum amount as low as Rs. 100 to open an RD account.

**Que**. What is the highest rate provided by the PNB recurring deposit?

**Ans**. A maximum rate of 5.80% is provided on PNB recurring deposits.

**Ques.** When will I receive the interest in my PNB RD account?

**Ans**. If you have selected the periodic payout option, then PNB will transfer the interest accumulated over the period chosen (monthly or quarterly as the option may be) to your linked bank account.

**Ques**. What happens when the PNB RD account matures?

**Ans**. Upon maturity of your PNB RD account, the principal amount and the interest earned on it is transferred to the linked savings account.