PNB RD Interest Rates 2024
Introduction:
PNB, abbreviated for Punjab National Bank, is a government-owned banking and financial service institution.
Established in 1894, the bank has expanded substantially and is headquartered in New Delhi.
Opting for a PNB recurring deposit can be an excellent choice if you aim to build a substantial corpus over the long term.
The tenure for a PNB RD account spans from 6 months to 10 years, with further classification into short-term, medium-term, and long-term categories.
PNB, abbreviated for Punjab National Bank, is a government-owned banking and financial service institution.
Established in 1894, the bank has expanded substantially and is headquartered in New Delhi.
Opting for a PNB recurring deposit can be an excellent choice if you aim to build a substantial corpus over the long term.
The tenure for a PNB RD account spans from 6 months to 10 years, with further classification into short-term, medium-term, and long-term categories.
Features of Punjab National Bank Recurring Deposit
Attributes of PNB Recurring Deposit Scheme
You can initiate a PNB RD account with a minimal deposit of just Rs. 100.
The tenure spans from 180 days to 10 years, offering flexibility.
Senior citizens enjoy an additional interest rate of 0.50% above the standard rates.
The highest interest rates are applicable for tenures ranging from 3 years to 10 years, offering 5.25% for regular citizens and 5.75% for senior citizens.
PNB facilitates loans against the deposited amount.
TDS deductions are contingent upon the income bracket of the applicant.
PNB extends a nomination facility, allowing you to designate a beneficiary to receive the matured amount in case of the account holder's demise.
Attributes of PNB Recurring Deposit Scheme
You can initiate a PNB RD account with a minimal deposit of just Rs. 100.
The tenure spans from 180 days to 10 years, offering flexibility.
Senior citizens enjoy an additional interest rate of 0.50% above the standard rates.
The highest interest rates are applicable for tenures ranging from 3 years to 10 years, offering 5.25% for regular citizens and 5.75% for senior citizens.
PNB facilitates loans against the deposited amount.
TDS deductions are contingent upon the income bracket of the applicant.
PNB extends a nomination facility, allowing you to designate a beneficiary to receive the matured amount in case of the account holder's demise.
Recurring Deposit Interest Rates - 2024
Banks
Interest
Rates (PA)
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
Interest Rate
for Seniors (PA)
Bandhan Bank RD Interest Rate
Bandhan Bank RD
Interest Rate
3.0% - 7.25%
3.5% - 7.75%
₹15,000
Kotak Mahindra Bank RD Interest Rate
Kotak Mahindra
Bank RD Interest Rate
Kotak Mahindra Bank RD
Interest Rate
4.0% - 7.25%
4.0% - 7.25%
4.0% - 7.75%
IDFC First Bank Rd Interest Rate
Central Bank
of India
3.5% - 7.0%
3.5% - 7.0%
4.0% - 7.5%
YES Bank RD Interest Rate
YES Bank RD
Interest Rate
7.45% - 7.75%
7.95% - 8.25%
RBL Bank RD Interest Rate
RBL Bank RD
Interest Rate
3.0% - 7.25%
3.0% - 7.25%
3.5% - 7.75%
Eligibility Criteria for Recurring Deposit
To initiate a PNB RD account, adherence to the following eligibility criteria is necessary:
Individuals aged 10 years and above are eligible to open an RD account, provided they present valid age verification.
Minors under the age of 10 can manage an RD account under the guardianship of their parents.
Municipalities, panchayats, and other quasi-governmental entities have the opportunity to avail RD services with PNB.
HUFs, charitable trusts, and proprietorships are also eligible to establish recurring deposit accounts.
To initiate a PNB RD account, adherence to the following eligibility criteria is necessary:
Individuals aged 10 years and above are eligible to open an RD account, provided they present valid age verification.
Minors under the age of 10 can manage an RD account under the guardianship of their parents.
Municipalities, panchayats, and other quasi-governmental entities have the opportunity to avail RD services with PNB.
HUFs, charitable trusts, and proprietorships are also eligible to establish recurring deposit accounts.
To initiate a PNB RD account, adherence to the following eligibility criteria is necessary:
Individuals aged 10 years and above are eligible to open an RD account, provided they present valid age verification.
Minors under the age of 10 can manage an RD account under the guardianship of their parents.
Municipalities, panchayats, and other quasi-governmental entities have the opportunity to avail RD services with PNB.
HUFs, charitable trusts, and proprietorships are also eligible to establish recurring deposit accounts.
Documents Required
In order to commence a Punjab National Bank RD account, you must furnish any of the documents listed below:
[A] Identity proof
Voter ID card or Aadhaar card
PAN card
Government-issued ID card
Ration card
Senior citizen ID card
[B] Address proof
Passport
Telephone or electricity bill
Bank account statements along with a cheque
Any certificate or ID card issued by the post office
In order to commence a Punjab National Bank RD account, you must furnish any of the documents listed below:
[A] Identity proof
Voter ID card or Aadhaar card
PAN card
Government-issued ID card
Ration card
Senior citizen ID card
[B] Address proof
Passport
Telephone or electricity bill
Bank account statements along with a cheque
Any certificate or ID card issued by the post office
In order to commence a Punjab National Bank RD account, you must furnish any of the documents listed below:
[A] Identity proof
Voter ID card or Aadhaar card
PAN card
Government-issued ID card
Ration card
Senior citizen ID card
[B] Address proof
Passport
Telephone or electricity bill
Bank account statements along with a cheque
Any certificate or ID card issued by the post office
Types of Punjab National Bank Recurring Deposit Schemes
PNB E-Recurring Deposit: This type of RD is exclusively accessible to users of PNB internet banking. Similar to a regular RD, this e-RD account offers features like nomination. Upon maturity, the accumulated amount is deposited into the same account used for making the term deposit.
PNB Recurring Deposit Scheme:
Open to individuals aged 10 years and above, this RD account can also be initiated for minors under the supervision of a guardian. Additionally, partnership firms, Hindu Undivided Families (HUFs), clubs, associations, and various governmental bodies are eligible to open this account. Starting with a minimum deposit of Rs. 100, multiples of this amount can be deposited.
PNB Special Recurring Deposit Product:
This unique RD account is available for government entities, private institutions, or corporate bodies. Organizations with a minimum of 10 employees or 75% of eligible employees (whichever is lower) can participate in this scheme.
PNB E-Recurring Deposit: This type of RD is exclusively accessible to users of PNB internet banking. Similar to a regular RD, this e-RD account offers features like nomination. Upon maturity, the accumulated amount is deposited into the same account used for making the term deposit.
PNB Recurring Deposit Scheme:
Open to individuals aged 10 years and above, this RD account can also be initiated for minors under the supervision of a guardian. Additionally, partnership firms, Hindu Undivided Families (HUFs), clubs, associations, and various governmental bodies are eligible to open this account. Starting with a minimum deposit of Rs. 100, multiples of this amount can be deposited.
PNB Special Recurring Deposit Product:
This unique RD account is available for government entities, private institutions, or corporate bodies. Organizations with a minimum of 10 employees or 75% of eligible employees (whichever is lower) can participate in this scheme.
Punjab National Bank RD Premature Withdrawal Facility
In accordance with the bank's regulations, a penalty of 1% is imposed if the deposited amount is withdrawn prematurely. This penalty also applies if the deposits are irregular or discontinued.
In accordance with the bank's regulations, a penalty of 1% is imposed if the deposited amount is withdrawn prematurely. This penalty also applies if the deposits are irregular or discontinued.
Tax Exemptions on RBL RD
Tax benefits are not applicable to PNB RDs. The interest income garnered from RDs is subject to taxation based on the individual's income tax slab rates.
Additionally, if the annual interest income surpasses INR 40,000, PNB imposes a 10% TDS (INR 50,000 for senior citizens).
The 10% TDS rate is applicable only when PAN details are provided; otherwise, the bank increases the TDS rate to 20%.
Tax benefits are not applicable to PNB RDs. The interest income garnered from RDs is subject to taxation based on the individual's income tax slab rates.
Additionally, if the annual interest income surpasses INR 40,000, PNB imposes a 10% TDS (INR 50,000 for senior citizens).
The 10% TDS rate is applicable only when PAN details are provided; otherwise, the bank increases the TDS rate to 20%.
How to Open a Recurring Deposit Account in RBL?
There are two avenues for obtaining an RD account at PNB:
Online (via Net Banking): Existing Punjab National Bank customers can simply utilize their net banking credentials to access their online accounts and promptly establish an e-RD.
Offline (Branch Visit): Individuals who are not currently PNB account holders must first inaugurate a PNB bank account by physically visiting the nearest PNB branch. Once the account is operational, they can proceed to open an e-RD by logging into their net banking account.
There are two avenues for obtaining an RD account at PNB:
Online (via Net Banking): Existing Punjab National Bank customers can simply utilize their net banking credentials to access their online accounts and promptly establish an e-RD.
Offline (Branch Visit): Individuals who are not currently PNB account holders must first inaugurate a PNB bank account by physically visiting the nearest PNB branch. Once the account is operational, they can proceed to open an e-RD by logging into their net banking account.
How to Calculate the Maturity Amount on RBL Bank RD?
The formula utilized to compute the total accumulated amount at maturity is expressed as A = P(1+r/n) ^ nt.
Here's the breakdown:
'A' represents the final amount
'P' denotes the principal
'r' indicates the annual interest rate
'n' signifies the number of interest compounding occurrences
't' represents the tenure
For instance, let's consider Mr. Atul who initiates an RD account with a regular deposit of Rs 500 on 1.4.17 for a duration of 24 months or 2 years. The applicable PNB recurring deposit interest rate for this duration is 6.5%.
Therefore, the total deposit amount would amount to Rs 12,843, which is less than Rs 2 Crore. As per the formula, the interest on this deposit would be Rs 843.
In addition to offering competitive interest rates, PNB RD accounts also qualify for tax benefits under the Income Tax Act of 1961.
The funds invested in a recurring deposit account are considered part of your annual income, subjecting them to a Tax Deducted at Source (TDS) of 10% on earned interest (provided it exceeds Rs. 10,000/year).
To mitigate TDS on your PNB RD returns, you must submit either Form 15G or 15H.
The formula utilized to compute the total accumulated amount at maturity is expressed as A = P(1+r/n) ^ nt.
Here's the breakdown:
'A' represents the final amount
'P' denotes the principal
'r' indicates the annual interest rate
'n' signifies the number of interest compounding occurrences
't' represents the tenure
For instance, let's consider Mr. Atul who initiates an RD account with a regular deposit of Rs 500 on 1.4.17 for a duration of 24 months or 2 years. The applicable PNB recurring deposit interest rate for this duration is 6.5%.
Therefore, the total deposit amount would amount to Rs 12,843, which is less than Rs 2 Crore. As per the formula, the interest on this deposit would be Rs 843.
In addition to offering competitive interest rates, PNB RD accounts also qualify for tax benefits under the Income Tax Act of 1961.
The funds invested in a recurring deposit account are considered part of your annual income, subjecting them to a Tax Deducted at Source (TDS) of 10% on earned interest (provided it exceeds Rs. 10,000/year).
To mitigate TDS on your PNB RD returns, you must submit either Form 15G or 15H.
1.) How can I close my RD account?
You can close your RD account either by visiting your bank branch, using net banking, or through the bank's mobile application.
2.) Where will the closure proceeds be deposited?
The closure proceeds will be credited to the same savings bank account from which the recurring deposit payments were deducted.
3.) Is it necessary to visit the bank branch to close the RD account?
No, you can also close your RD account using net banking or the bank's mobile application.
4.) Can I close my RD account online?
Yes, you can close your RD account online through net banking or the bank's mobile application.
5.) Will I receive the closure proceeds immediately?
The closure proceeds will be deposited into your savings account, usually within a few business days after the closure request is processed.
Author
Harish Malhi
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