Punjab National Bank (PNB), a leading public sector bank, offers fixed deposits with attractive rates and different tenures.
PNBs fixed deposits were designed keeping in mind the different needs of an individual at different stages of life. PNB FDs offer many facilities like choices between simple and compound interest, flexible durations, low deposit amounts and even auto-renewal facilities.
Any individual, organisation, private company, club, HUF or society can open these Fixed or Term Deposit accounts. Some deposits schemes are open for NRIs too.
Term Deposits like Balika Shiksha can be opened at nil balance. Usually the upper limit is ₹ 10 crores for most fixed deposits.
Term Deposits can be opened from as briefly as 7 days to as long as 10 years. There is the option of auto-renewals at the end of term too.
Any Indian above 10 years old can walk into any branch of PNB and open an account by providing KYC details. For minors below 10 years, parents consent/signature is required.
E-FD: Available to internet banking customers with a PAN card. They can open FDs online.
Interest rates for fixed deposits depend on the card rate applied by PNB. However, there are deposit schemes like Lakhpati where the interest rate hovers around 9 percent. Senior citizens are eligible to earn 0.50 percent more.
Yes, the PNB Tax Saver Term Deposit At least Rs 100/- or in multiples thereof, subject to a maximum of ₹ 1.50 lakhs per financial year. Deposits cannot be withdrawn before 5 years.
Currently as per Income Tax Act, if the total interest on deposits, per depositor, per financial year, per branch is more than ₹ 10,000/-, the bank deducts tax at source (TDS). Form No.15 H/15G has to be furnished by depositors, preferably at the start of the financial year to receive interest on deposits without deduction of tax.
Auto-renewal: If the depositor opts for auto-renewal, his/her term deposits will be automatically renewed after maturity except for term deposits under the Recurring Deposit Scheme, Capital Gain Scheme, PNB Tax Saver Scheme, Bulk Term Deposits (above ₹ 10 Crore) and Inter-Bank Deposits.
Inclusion of blind and illiterate persons: PNB allows blind and illiterate persons to open a fixed deposit account.
Inclusions of all sections of society: Right from High School girls to beneficiaries of road accident insurance claims, PNB FDs are designed to serve every category of depositors.
Generally PNB allows overdrafts/loans against deposits except on Certificates of Deposit (CD). Such loans are sanctioned by charging interest as per RBI bank rate or as prescribed by the Bank.
Prospective Senior Citizen Deposit Scheme:This is a scheme for persons aged 55 years and above and up to 60 years. Minimum deposit is ₹ 100/- and in multiples of ₹ 1/- thereafter. The maximum amount permitted under the scheme is ₹ 99, 99,999/-. Extra interest rate as applicable on attaining senior citizenship.
Yes, NRIs can open fixed deposit account with Punjab National Bank. The account can be opened in STG Pound, US Dollars and EURO. Minimum balance required is GBP1000, USD1000 and EURO1000. The interest rates for deposits less than Rs.1 crore is:
1 year- 8.25%
Above 1 year to 2 years- 8.25%
Above 2 years to 5 years- 8.25%
Above 5 years to 10 years- 8%
The interest rates for deposits between Rs.1 crore to Rs.10 crores is:
1 year- 8.25%
Above 1 year to 2 years- 8.50%
Above 2 years to 5 years- 8 %
Above 5 years to 10 years- 8%
The senior citizens will bet an additional 0.5% interest per annum.
PNB does not allow premature withdrawals. But in exceptional cases it is allowed but a certain penalty will be charged at the time of withdrawal. The penalty will be communicated with the customer prior to the closure. In case of premature closure, the interest applicable will be payable less the penalty. The interest payable is the rate at which the fixed deposit was decided upon at the time of deposit.
Usha Ananthasubramanian, the MD and CEO of Punjab National Bank hinted at the possibility of the bank witnessing a 10-12% credit growth in the current fiscal, up from the growth of 6.7% in September 2015. Miss Ananthasubramanian also stated that there is no immediate possibility of an interest rate cut and that PNB is keen to reduce its net NPAs from 3.9%. She also mentioned that PNB is adopting the ARC route to improve performance and cleaning up their books. With regards to deposits, she stated that term deposits of different tenors account for 65% of their overall numbers, with PNB committing to an interest rate for the full tenor.
13th December 2015