Punjab National Bank Recurring Deposit (RD)
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 5.70% for the deposit amount.
Punjab National Bank, which was nationalized in 1969, has a global presence, serving over 8.9 crore valued customers. The bank has 6076 branches in India, 5 branches in other countries, and 6940 ATMs.
Punjab National Bank has a large franchise value, strong fundamentals, and a great brand image. It provides several offers and products to meet the growing financial needs of its customers.
Punjab National Bank recurring deposits allow you to enjoy attractive rates of interest at the cost of investing a smaller savings amount.
PNB RD is a kind of deposit where you can deposit a certain amount every month over a fixed period.
Features and Benefits of PNB Recurring Deposit
Punjab National Bank offers several features and benefits to their customers with recurring deposits.
- Enjoy both individual Recurring Deposit account and joint Recurring Deposit account
- Individuals above age ten can open a PNB Recurring Deposit account by providing age proof
- Individuals below age ten can open an RD account if it is authorized
- Corporate firms, commercial organizations, proprietorship firms can have Recurring Deposit accounts with Punjab National Bank.
- All Hindu Undivided Families can enjoy the benefits of PNB Recurring Deposit accounts.
- Religious or charitable trusts, associations, clubs and societies can maintain Punjab National Bank RD accounts.
- Panchayats, municipalities, government and quasi government bodies can have RD accounts with PNB.
Interest Rates Offered by Punjab National Bank’s Recurring Deposit
The maturity period, or deposit period, plays a crucial role in determining the interest rates. The rate of interest also depends on the amount in the account at that time. For a deposit amount of INR 1 crore, the interest rate varies from 7.75 percent to 8.25 percent.
But for senior citizens, it varies from 8.25 percent to 8.75 percent. For a deposit amount between INR 1 crore and INR 10 crore, the interest rates range from 7.75 percent to 8 percent.
Terms and Conditions for Punjab National Bank’s Recurring Deposit
- The period of Recurring Deposit can vary from six months to ten years
- Customers may avail premature withdrawal of their recurring deposit
- TDS is not applicable
- Overdrafts and loans are allowed against deposits
- Overdue deposit interest depends on the prevalent bank policies
- The interest accumulated on your recurring deposit is exempted from income tax to a certain limit as indicated by the IT department
The Process for Opening a Recurring Deposit Account with Punjab National Bank
At Punjab National Bank, you require a recommendation letter from a respectable person approved by the bank. The Recurring Deposit account holder must provide two recent photographs, as directions given by Reserve Bank of India. Punjab National Bank also requires your Permanent Account Number (Pan) or General Index Register (GIR) Number to activate an RD account.
Penalty Clause
In the event of premature cancellation of recurring deposits, 1 percent penalty will be charged as per bank norms. Penalty will also be applicable Recurring Deposit account is irregular or discontinued.
FAQs on Punjab National Bank RD
- What are the interest rates offered on PNB recurring deposits?
The interest rates offered on PNB recurring deposits range from 5.50% to 7.25% p.a.
- What are tenure options offered on PNB recurring deposits?
The tenure options offered on PNB recurring deposits range from six months to 120 months.
- What is the minimum amount required to open a recurring deposit with PNB?
The minimum amount required to open a recurring deposit with PNB is Rs.100.
- Can I open a recurring deposit with PNB jointly?
Yes, you can open a recurring deposit with PNB jointly.
- Can minors open a recurring deposit account with PNB?
Yes, minors under the age of 10 years will need a guardian/parent to open a recurring deposit. Minors aged 10 years and above can open a recurring deposit in their names by submitting age proof.
- Are illiterate individuals eligible to book a recurring deposit with PNB?
Yes, PNB offers recurring deposits to illiterate individuals.
- Can I add nominees to my recurring deposit account?
Yes, the facility of nomination is available at PNB.
- Does PNB offer the facility of availing loans against recurring deposits?
Yes, you can avail loans against your recurring deposit account.
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