Overview of Punjab National Bank

Punjab National Bank (PNB), known as India's first Swadeshi Bank, is a prominent Indian banking company with a vast network comprising 10,925 branches and 13,914 ATMs across the country. Additionally, PNB has an international presence in six countries. The bank offers a variety of fixed deposit options with interest rates ranging from 3.00% p.a. to 5.25% p.a. Customers can secure their funds for a chosen tenure, during which additional deposits or withdrawals are not permitted. The interest rates provided are based on the selected tenure.

Features and Benefits of PNB Fixed Deposits

Tenure Range: From 7 months to 120 months (10 years)

Highest Interest Rate: 6.30% p.a.

Senior Citizen Benefits: Additional interest of 0.50% over regular rates

Minimum Deposit: Varies depending on the chosen scheme

Nomination Facility: Available

Loan/Overdraft Facility: Provided by the bank

Term Deposit Options: Includes schemes for road accident victims, Sugam Term Deposits, Multi-Benefit, Special, Ordinary, and Anupam Term Deposit Schemes

These fixed deposit schemes cater to a wide range of customers, ensuring that various financial needs are met.

Types of PNB FD Schemes

PNB offers multiple term-wise fixed deposit rates, allowing customers to choose based on their investment goals and financial requirements.

Comparing PNB with Other Banks' FD Rates

When choosing a fixed deposit, it's beneficial to compare the interest rates and benefits offered by different banks to ensure you are getting the best return on your investment.

How to Invest in a PNB Fixed Deposit

You can open a PNB FD account through multiple channels, including Mobile App, Internet Banking, and offline methods.

Internet Banking

Sign in to your PNB NetBanking account.

Choose the ‘Open Fixed Deposits’ option.

Fill in all necessary details, nominee information, and maturity instructions.

Opt for door-step assistance from the bank’s representative for document submission.

The FD will be booked upon verification and validation of the application form and KYC documents. The FD certificate will be sent to your communication address, and a confirmation SMS will be sent to your registered mobile number.

Mobile App - PNB Bank App

Download and sign in to the PNB Bank App.

Select the ‘Open FD’ option.

Fill in all necessary deposit information, nominee details, and opt for door-step assistance.

A bank representative will visit for complete verification.

Upon successful verification, the FD will be booked. The FD certificate will be sent to your communication address, and a confirmation SMS will be sent to your registered mobile number.

Offline PNB FD Opening

Visit the nearest PNB Bank branch.

Fill out the PNB Bank FD application form and submit all necessary documents with the deposit amount.

Upon successful processing of the application, an FD certificate will be dispatched to your communication address, and you will receive an SMS confirmation on your registered mobile number.

Eligibility to Open a PNB FD Account

The following individuals or entities are eligible to apply for a PNB fixed deposit scheme:

Resident individuals

Non-resident Indians (NRIs)

Hindu Undivided Families (HUFs)

Sole proprietorships, partnership firms, public and private limited companies

Registered societies, trusts, and associations

Documents Required to Open a PNB FD

To open a PNB Fixed Deposit, you need the following documents:

Identification Proof: Aadhaar card, Voter ID card, driver’s license

PAN Card

Address Proof: KYC documents and utility bills (electricity bill, gas bill)

Passport-Size Photographs

Bank Account Statements

Tax Implications on Punjab National Bank Fixed Deposit

Investing in a PNB Tax Saving FD can entitle you to tax savings of up to Rs. 1,50,000 p.a. under Section 80C of the Income Tax Act. However, other PNB FDs do not offer tax-saving benefits under this section. Interest income from PNB Fixed Deposits is taxable according to the applicable income tax slab rates and is subject to a TDS of 10% if the interest income exceeds Rs. 40,000 p.a. For senior citizens, the limit is Rs. 50,000 p.a. If PAN Card details are not provided, the TDS rate will be 20%.

Loan Against Punjab National Bank FD

PNB offers loans against their Fixed Deposits, allowing investors to borrow up to 90% of the deposit amount. The interest rate for such loans ranges between 4% and 6.3%.

Premature Closure of Punjab National Bank Fixed Deposit

Most PNB Fixed Deposits can be withdrawn prematurely, except for the tax-saving Fixed Deposit. A 1% penalty on the interest rate applies for premature withdrawals, subject to the terms and conditions set by Punjab National Bank.

In conclusion, PNB Fixed Deposits offer a secure and beneficial way to save and grow your money. By understanding the features, benefits, and procedures involved, you can make an informed decision that aligns with your financial goals.