PNB, short for Punjab National Bank is a banking and financial service bank owned by the Government of India. Founded in 1894, the bank has grown leaps and bounds and has its headquarter in New Delhi. A PNB recurring deposit is one of the best RDs available in the market right now. The tenure for a PNB RD account ranges from 6 months to 10 years. The tenures are further categorized as short-term, medium-term and long-term.

PNB Recurring Deposit Interest Rates as per the Tenure

Tenure Interest Rates for General Citizens (p.a) Senior Citizen RD Interest Rates (p.a)
180 days to 270 days 6.35% 6.85%
271 days to 364 days 6.35% 6.85%
1 year 6.60% 7.10%
Above 1 Year to 3 years 6.75% 7.25%
Above 3 years to 5 years 6.25% 6.75%
Above 5 years to 10 years 6.25% 6.75%

Note: The above interest rates are for investments less than Rs. 1 Crore.

Important Details Regarding PNB Recurring Deposit Scheme

  • The minimum amount needed to open a PNB RD account is as low as Rs. 100
  • The tenure ranges from 180 days to 10 years
  • Senior citizens can avail an extra interest of 0.50% interest over regular interest rates
  • The maximum interest rate offered by the bank is for a tenure ranging for more than a year to 3 years. The rates are 6.75% for regular citizens and 7.25% for senior citizens
  • PNB offers a facility of loan against the deposit amount
  • TDS deductions depend on the income slab to which the applicant belongs
  • PND also offers nomination facility so that you can nominate somebody to collect the matured amount in case of the account holder’s demise

Term-wise Recurring PNB Recurring Deposit Interest Rates

Punjab National bank offers recurring deposits with terms ranging from 180 days to 10 years and these term deposits are segregated into:

PNB Short term RD Interest Rates: Theses RDs offer ranges from 180 days to a year and the interest rate offered by the bank is 6.35% for regular citizens and 6.85% for senior citizens

PNB Medium Term Interest Rates: With a tenure ranging from 1 to 3 years, the interest offered on this type of deposit is 6.75% for regular citizens and 7.25% for senior citizens. For tenure ranging from 3-5 years, the return offered by the bank is 6.25% for regular citizens and 6.75% for senior citizens.

PNB Long-term Interest Rates: The tenure for long term deposit is usually more than 5 years and less than 10 years; Interest rates offered as 6.25% for regular citizens and 6.75% for senior citizens.

Types of Recurring Deposit Offered by PNB

PNB Recurring Deposit (E-RD): This RD is available to PNB internet banking users only. This e-RD account has benefits like nomination like that of a regular RD account. Once it is matured, the amount is credited to the same account through which the term deposit was made.

PNB Recurring Deposit Scheme: This RD account can be opened by any individual who has attained 10 years of age or above. However, applicants below 10 years of age can also open a PNB recurring deposit scheme under the supervision of a guardian. Not only individuals but partnership firms, Hindu Undivided Families (HUF), clubs, association, and other government bodies can also open his RD account. A PNB recurring deposit account can be opened with amount as low as Rs. 100 and in multiple

PNB Special Recurring Deposit Product: Any government, private institution, or corporate body can open a PNB Special Recurring Deposit account. Any institution having a minimum of 10 employees or 75% of eligible employees (whichever is lower) are eligible to participate in this scheme.

Premature Withdrawal Rules on PNB RD 

As per the bank rules, the bank levies a penalty of 1% if the deposited amount is withdrawn before the maturity period. The penalty is also applicable in case the deposits are irregular or discontinued.

PNB RD Interest Calculator

The RD maturity amount you get is the sum of all the below-given parameters. Alternatively, one can also use PNB RD Interest calculator to check the interest earned on their deposit.

Deposit Amount: The initial amount deposited by a customer in their account. The deposit amount for PNB RD starts from as low as Rs 100.

PNB RD Interest Rates: Punjab National Bank higher rate of interest on recurring deposits with longer tenure and lower interest rates for an account opened for a shorter period. The highest interest rate offered by the bank is 6.75% for deposit amount.

 Deposit Tenure: As mentioned in the previous point, low-interest rates are offered for short tenure RDs and vice-versa.

 Frequently Asked Questions on PNB RD Rates

 What is the eligibility to open a PNB RD account?

 Any individual who is an Indian resident and HUF (Hindu Undivided Families). Moreover, NRIs can also open an RD account through NRO and NRE accounts. Bank also provides RD scheme for minors (less than 10 years of age) under the guardianship of parents to monitor their finances.

What are the documents required for PNB Recurring Deposit Scheme?

Any valid identity proof and address proof will suffice along with passport size photographs of the applicant and duly filled application PNB RD account.

Does PNB allow partial withdrawal of RD account?

No, the bank doesn’t allow partial withdrawal of recurring deposits.  

Is it mandatory to set up standing instruction on RD?

You will be asked to make the payment online in case you are opening an e-RD account. However, once the account is opened, the RD installments can be easily paid either online or at a branch instead of setting up standing instructions. 

How to add nominees to RD account?

Nominees can be added while opening an RD account online by providing the details of the nominee.


Saving a part of your earnings every month can really prove helpful for an emergency fund in the long term. Recurring deposits are one of the best options to save a substantial amount of money in your account, However, if your objective is wealth creation to plan your retirement, RD won’t be the best fit for you; you can go for mutual funds in that case. Finally, it is strongly recommended to read all the investment-related terms and conditions meticulously before proceeding with the investment.