A PNB recurring deposit account is one of the most sought after investment schemes that the market currently has to offer. The term period for a PNB recurring deposit account ranges from 6 months to 10 years. The term periods are divided into short-term, medium-term and long-term tenures. A tenure from 6 months to a year is considered short term, a tenure from more than a year to 5 years is counted as medium term, and a period of more than 5 years to less than 10 years is considered long term.
Listed below are the RD Interest Rates offered by PNB Bank w.e.f. 1 March 2018, according to the tenure selected by the customer.
|Tenure||Regular RD Interest Rates (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%|
|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%|
*The above interest rates are for investments less than Rs.1 crore
Important Information to Note for PNB Recurring Deposit Scheme
Some of the important details regarding an PNB recurring deposit account are mentioned in the table below:
|Minimum Amount to be Deposited||Rs.100|
|Tenure||180 days to 10 years|
|Additional Interest Rate for Senior Citizen||0.50%|
|What is the Maximum Interest Rate offered by the bank and for which tenure?||The maximum interest rate offered is for the term period ranging from more than a year to 3 years. The rate offered is 6.75% for regular citizens and 7.25% for senior citizens.|
|Loan Against Deposit||Available|
|TDS on RD||The TDS deductible will depend on the income slab to which the applicant belongs.|
|Nomination Facility||Most types of RD offered by PNB have nomination facility.|
Eligibility Criteria for PNB Recurring Deposit
Following individuals or entities are eligible to open a PNB recurring deposit account:
- Any individual.
- Any minor who is above 10 years of age if he or she provides proof of the name.
- Any minor who is below or equal to 10 years of age under the guardianship of natural or legal guardian.
- Any corporate, company, proprietorship or commercial organisation.
- Any government organisation.
- Any person who is illiterate or blind person is also eligible for a PNB RD account.
Documents Required for PNB Recurring Deposit Scheme
- Identity Proof: Documents that can be accepted by PNB as identity proof for Recurring Deposit are copy of passport, PAN card, Aadhar card, Voter ID, Driving licence, Ration card, Government ID card, Senior citizen card.
- Address Proof: Documents that can be accepted by PNB as address proof for an RD account include copy of passport, Aadhar card, electricity bill, phone bill, bank statement with cheque.
- Passport size photographs of the applicant.
- Filled application form through which a PNB Recurring Deposit account can be opened.
How to Apply for a PNB Recurring Deposit Account?
- If you are an existing PNB account holder, you can use your netbanking username and password to login to your online account and open an e-RD right away. However, if you do not have your netbanking credentials, you can always walk into the nearest PNB branch and a bank officer will help you open an RD account.
- If you are not a PNB account holder, you will have to open a PNB bank account first by visiting the nearest PNB bank branch. After your account is active, you will be allowed to open an e-RD by logging in to your netbanking.
Get the Highest Interest Rates on PNB Recurring Deposit
For different term periods, different rates of return can be availed. The interest rates are different for regular and senior citizens. The interest rate ranges from as low as 6.25% to as high as 6.75% for regular citizens, and 6.75% to 7.25% for senior citizens.
PNB Short-Term Recurring Deposit Interest Rates
For the term period ranging from 180 days to a year, the interest rate offered by PNB for a recurring deposit account is 6.35% for regular citizens and 6.85% for senior citizens.
PNB Medium-Term and Long-Term RD Interest Rates
For medium-term tenure, the highest rate of return offered by PNB is for 1-3 years period which is 6.75% for regular citizens and 7.25% for senior citizens. For the term period 3 to 5 years, the rate of return offered by the bank is 6.25% for regular citizens and 6.75% for senior citizens. As far as long-term tenure is considered, the rate of return offered by PNB for a period of more than 5 years and less than 10 years is 6.25% for regular citizens and 6.75% for senior citizens.
PNB Senior Citizen RD Rates
- For senior citizens, Punjab National Bank’s (PNB) rate of return is 0.50% greater than that for regular citizens.
- For the short- term tenure, the rate of interest offered by PNB recurring deposit account ranges from 6.85% to 7.10% p.a.
- For the medium-term and long-term tenure, PNB offers interest at 7.25% and 6.75% p.a. respectively.
Types of Recurring Deposits Offered By PNB
PNB offers many types of recurring deposits. Some of the most popular ones are:
- PNB Recurring Deposit Scheme (E-RD): This RD account can be opened by PNB internet banking users only. This e-RD account also has benefits like nomination which are available in regular RD account. Upon maturity, the benefit will be credited to the same account through which the term deposit was deposited.
PNB Recurring Deposit Scheme: This RD account can be opened by anyone who is 10 years of age or above. Applicants below 10 years of age can also open a PNB Recurring Deposit Scheme with the help of a guardian. Apart from individuals, partnership firms, Hindu Undivided Families, associations, clubs, and other government bodies can also apply for this RD account.
A PNB Recurring Deposit Scheme can be opened by paying as little as Rs.100 and in multiples thereof. The tenure of the RD can range anywhere from 6 months to 120 months in multiples of 1 month.
- PNB Special Recurring Deposit Product: A PNB Special Recurring Deposit Account can be opened by any government institutions, private institutions, or corporate bodies. Any institution with a minimum of 10 employees or 75% of eligible employees(whichever is lower) can participate in this scheme.
PNB Recurring Deposit Calculator
Most people opt for recurring deposits to maximise their savings. The maturity amount on your RD depends on various factors like the RD deposit amount, rate of interest offered by the bank, tenure of the RD, TDS, and other such factors.
There are many websites that offer Recurring Deposit Calculators. You can use any one of these to calculate the interest you would earn on your recurring deposit.
FAQs on PNB Recurring Deposit
Can I open a recurring deposit online through my netbanking?
Yes. If you are an existing PNB account holder, you can use your internet banking credentials to access your netbanking and open an e-RD account. However, please note that you should at least have one transaction that is mapped with your internet banking username to open an e-RD.
What is the minimum and the maximum tenure for RD accounts opened online?
If you are opening an e-RD, the minimum tenure is 12 months and the maximum can go up to 120 months.
How is the maturity amount on my RD account calculated?
There many factors like the installment amount, tenure of the RD, interest rate, and type of account that decides the maturity amount on your RD. However, after calculating, the maturity amount is rounded off to the nearest Rupee and will become payable maturity date.
What type of account should I have to open an RD account?
You can open an RD account with a savings account, current account, or OD account. The only rule is that the account should not be in stopped, locked, or dormant status while you are opening an RD account.
Can I open a recurring deposit account on a different name that is not as same as the name of the debiting account from which the RD deposit is taken?
No. You will not be allowed to open a recurring deposit account on a different name that is not as same as the name of the debiting account from which the RD deposit is taken. You may visit a PNB branch to get this done.
Will I be allowed to add nominees to my RD account?
Yes. While opening an RD account online, you will be asked to provide your nominee details.
Are there any timings that I need to follow when I open a RD account online?
Yes. If you open an RD account online between 8 AM IST to 8 PM IST, the request will be honored on the same day. Any requests out of these hours will be pushed to the next working day.
I want to cancel the standing instructions that I set on my e-RD. How do I do it?
Please login to your netbanking and navigate to the “Request” option. Under this option, please click on “Standing Instruction Link”. You will be allowed to view or cancel your standing instructions under this link.
Is it mandatory for me to setup standing instruction on my RD?
To open an e-RD account, you will be asked to make a payment online. However, once the account is open, you can pay your RD installments at a branch or online instead of setting up standing instructions.
Can I close my RD account online?
If you have opened an e-RD online, you will have an option called “Close Account” under e-RD when you log in to your netbanking. However, RDs that are not created online cannot be closed using this option.
More you need to know about Recurring Deposit
- RD Calculator
- Recurring Deposit
- Compare Recurring Deposit Interest Rates of PNB with Other Banks and Institutions
Punjab National Bank RD Schemes
- PNB Swechha Jama Yojna/Flexi Recurring Deposit Scheme
- PNB Special Recurring Deposit
- PNB Lakhpati Deposit Scheme (Recurring & Fixed Deposit) - B
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