Punjab National Bank is a PSU or public-sector undertaking owned by the Government of India. It was founded in the year 1894, when it had its registered office in Lahore, Pakistan. Currently, it is headquartered in New Delhi.
Punjab National Bank has approximately 7000 branches in India with over 115 million customers. Alongside India, it is also operational in 10 other countries which include the UK, Hong Kong, UAE, Australia, etc. Oriental Bank of Commerce and United Bank of India are all set to merge with PNB in 2020.
With the advent of the internet, PNB has simulated several of its services online, which also includes PNB FD or fixed deposits, making it more convenient for individuals to open an account.
In this article
Types of PNB FD Plan
- PNB Uttam Deposit Scheme – This is a non-callable FD scheme requiring a minimum deposit of Rs. 15 lakh. Interest rates on this account range from 5.80% to 6.80% respectively.
- PNB Road Accident Deposit scheme – Any victim recipient who has received funds from the Motor Tribunal can deposit the same under PNB fixed deposit scheme. Interest rates are under this plan is 1% higher than rates imposed on standard policies.
- Anupam term deposit – Deposits above Rs. 10, 000 and up to Rs. 99.99 lakh can be made under this scheme. Investors are also extended the facility of overdrafts under Anupam deposits.
- Balika Shiksha Deposit – Unmarried girls below the age of 16 studying in government schools can opt for this fixed deposit plan.
- PNB Capital gain deposit– Any capital gains realised can be invested in this plan having a wide tenure range of 7 days 10 years, with provision for premature withdrawals.
- Multi benefit deposit scheme – Deposits starting from Rs. 100 to Rs. 99.99 lakh can be maintained for a period of 6 months to 120 months. Loan against FD facility is available under this plan.
- Special term deposit – Deposits under this plan can be made for any time between 1 year and 10 years.
- Sugam term deposit – Any amounts from Rs. 10,000 to Rs. 10 crore for 46 days to 10 years can be deposited, along with part withdrawal facility of minimum Rs. 1,000.
- Ordinary term deposit – Investment tenure ranging from 7 days to 179 days is available under this scheme, wherein the deposit amount has to lie within Rs. 100 and Rs. 99.99 Lakh.
- Varshik Aay FD – Any deposit starting from Rs. 1,000 to Rs. 99.99 lakh for any time between 1 and 10 years can be made under this scheme.
- Tax saver FD – This PNB fixed deposit plan comes with a mandatory locking period of 5 years, and the entire corpus (up to Rs. 1.5 lakh) is exempt from tax calculations under Section 80C.
- Prospective senior citizen term deposit – Senior citizens can apply for this scheme at comparatively higher interest earnings.
- Mibor linked notice deposit – Investments above Rs. 10 crores can be deposited at an interest rate linked with Mumbai Interbank Offer rate.
- Floating rate fixed deposit scheme – Flexible interest rates as per changes of the repo rate is applicable on all deposits above Rs. 1,000 for 7 days to 10 years.
- Bulk fixed deposit scheme – Under this PNB fixed deposit scheme, investments of Rs. 10 crores and higher can be made, subject to either monthly discounted interest rates or quarterly compounding.
Advantages of Opening a PNB Fixed Deposit Account
- Flexible tenure – PNB offers various tenures for investing in a fixed deposit scheme, ranging from 7 days to 10 years.
- Nominal deposits – A fixed deposit account can be opened with Punjab National Bank with a minimum balance of Rs. 100.
- Periodic interest withdrawal facility – Non-cumulative PNB fixed deposit comes with timely interest disbursement facility, wherein accrued interest dividends can be withdrawn before the maturity of the scheme to cover personal expenses.
PNB FD Plan – Eligibility Criteria
Individuals or entities falling under any of the following criteria can apply for a fixed deposit scheme from PNB –
- Resident individuals
- Non-resident Indians
- Hindu Undivided Families
- Sole proprietorship, partnership firms, public and private limited companies
- Registered societies, trusts and associations
Documents required for PNB fixed deposit
Documents which have to be submitted to open a Punjab National Bank Fixed deposit are –
- Identification proof – Aadhaar card, Voter ID card, driver’s license
- PAN card
- Address proof – All related KYC documents as well as utility bills such as electricity bill and gas bill.
- Passport-size photographs
- Bank account statements
Punjab National Bank Fixed Deposit Interest Rates
|Tenure||Non-senior citizen and NRO FD (%)||Senior citizen FD (%)|
|9– 12 months||6.00||6.50|
|1 year – 10 years||6.30||6.80|
Additionally, NRE fixed deposit interest rates lie between 5.50% and 6.30%. Such interest rates are applicable on deposits below Rs. 2 Crore respectively.
Premature withdrawal policy
PNB usually does not allow customers to make premature withdrawals however, exceptions have been made. In such cases withdrawal will be allowed but a certain penalty will be levied on the same. The penalty charges are communicated to the depositors before account closure. For premature closure, the depositor will be paid after subtracting the penalty charge.
Individuals cumulatively earning lower than Rs. 40,000 as interest in a FY can submit form 15G as a declaration of the same, to ensure TDS at 10% is not deducted upon maturity of an FD scheme. Senior citizens having an interest income of up to Rs. 50,000 have to file form 15H for TDS rebate.
Loan against PNB FD
Overdraft against PNB fixed deposit is extended at interest charges 1% higher than the interest offered on its FD scheme. Loan value can extend up to 90% of the total fixed deposit amount. However, such a facility is not provided on tax saver fixed deposits.
- Why choose PNB?
It is one of the largest public sector banks in India, with a current market capitalisation value of over Rs. 42,000 Crore.
- What is the tenure of FD?
Tenure of PNB FD can range from 7 days to 10 years, depending upon the chosen scheme.
- Which fixed deposit is best for tax saving?
PNB tax saver FDs having a deposit limit of Rs. 1.5 lakh and tenure of 5 years is an ideal FD tool for tax saving, as the corpus invested are deducted from taxable income value.
- What is the TDS rate if I don’t submit PAN details?
TDS at 20% is deducted on total maturity amount if PAN information is not furnished.
- How many types of Punjab National Bank fixed deposits are available?
Punjab National Bank offers around 15 fixed deposit plans.
- What is an overdraft on FD?
Credits can be availed against an on-going FD scheme to meet any emergency personal expenses without compromising the investment plan. This is known as overdraft policy, or loan against fixed deposits.
- Can I renew my FD automatically?
Yes, you can opt for auto-renewal process on your PNB FD plan.
- Can I get any benefits on FD rates as a senior citizen?
Senior citizens are offered 0.50% higher interests when compared to standard FD schemes.
- What is the minimum and maximum amount of deposit under PNB FD?
The minimum amount required for the deposit is Rs. 100, and there is no upper limit on fixed deposits, subject to respective PNB fixed deposit schemes.
- Can I invest periodically in a fixed deposit scheme?
No, fixed deposits offered by Punjab National Bank require lump sum investment.