PNB Tax Saver Fixed Deposit Scheme
Income tax is a crucial aspect in the earnings (salary or profit) of any individual or non-individual. Though it is imperative for earning citizens of India to be paying their due tax per fiscal year, sometimes the income tax seems a bit too taxing for many salaried and low-income groups.
Additionally, people might want to have a corpus to help out in case of any financial exigencies and they would want the savings plus additional interest to be provided to them as a lump sum without any excess tax being levied on the same.
Punjab National Bank (PNB) offers its customers an option to open a fixed deposit account that allows them to benefit from preferential interest rates, while also gaining a tax benefit under Section 80C. This specific 5-year scheme is known as the PNB Tax Saver Fixed Deposit. Those who are not seeking tax benefits can also go for regular PNB fixed deposits.
PNB Tax Saver FD Interest Rates
Given below are the revised and latest interest rates offered on the PNB Tax Saver FD Scheme for regular and senior citizens with effect from May 2023:
Depositors | Up to 5 years Interest Rate (p.a.) | Above 5 years and up to 10 years (p.a.) |
General Public | 6.50% | 6.50% |
Senior Citizens | 7.00% | 7.00% |
Staff Member | 7.50% | 7.50% |
Retired Staff Member | 7.50% | 7.50% |
Eligibility Criteria for applying for PNB Tax Saver Fixed Deposit
The basic eligibility criteria for opening a Tax Saver Fixed Deposit with Punjab National Bank are as follows:
- Customer must be above 18 years of age
- Customer must be either salaried or self-employed
- Customer must have existing banking relationship with Punjab National Bank (PNB) or must come with proper introductions
Apart from the above mentioned basic criteria, the bank might require additional conditions to be fulfilled, based on its discretion.
Documents Required for PNB Tax Saver FD Scheme
You may be required to submit the following documents while opening the account:
Identity proof:
- PAN (permanent account number) card
- Voter ID card
- Driving license
- Passport
- Government ID card
- Senior citizen ID card.
Address proof:
- Telephone bill
- Electricity bill
- Passport
- Bank statement with cheque
- ID card issued by post office.
Along with the above mentioned documents, you may be required to submit two passport-sized photographs.
Features of PNB Tax Saver Fixed Deposit
Account Type | Both individuals and non-individuals can apply. Hindu Undivided Families allowed. Accounts can be jointly held |
Deposit Amount | Minimum deposit is Rs.100 Maximum deposit per financial year will be Rs.1.5 lakh |
Rate of Interest | 6.50% for regular individuals and 7.00% for senior citizens |
Period | 5 years to 10 years |
TDS | TDS applicable only if the interest earned is more than Rs.10,000 in a financial year. For senior citizens, this limit is Rs.50,000. |
Lock-in Period | 5 years |
Tax Rebate Applicability | Tax rebate is allowed under Section 80C within the limits specified by the Income Tax Department |
Loan against PNB Tax Saver Fixed Deposit Scheme | No loan facility can be availed |
Nomination | Nomination facility is available |
Auto Renewals | The scheme is valid only for the period selected at initiation. Renewal for another year happens only if the deposit is continued |
FAQs on PNB Tax Saver Fixed Deposit
- What are the documents required for opening a Tax Saver Fixed Deposit?
One would require an introduction to the bank or should be an existing customer. Apart from that, two recent passport size photographs of the person(s) opening the account will be required. Government attested ID proof and declaration through Form 60 or 61 or PAN (Permanent Account Number).
- How to apply for a Tax Saver Fixed Deposit in Punjab National Bank (PNB)?
One can apply for a Tax Saver FD with PNB through any of its official branches by furnishing the required documents and the minimum deposit amount.
- How to open a Tax Saver Fixed Deposit account online?
To open an account online, one needs to have an active internet banking ID and password. Those who do not have one can create it.
- Will TDS be deducted at a higher rate if PAN card is not provided at the time of opening an account?
Yes.
- Can you close a Tax Saver Fixed Deposit account online?
If the account has been opened online, it can be close online.
- Is premature withdrawal allowed?
Premature withdrawal is not allowed before the completion of 5 years. However, if you decide to withdraw before the lock-in period, you will be charged a fee.
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