How to Maximize Returns with PNB Fixed Deposits?

Puja Punjab National Bank (PNB), recognized as India's leading Swadeshi Bank, boasts an expansive banking network with 10,925 branches and 13,914 ATMs across the country and operations in six other nations. PNB offers a diverse range of fixed deposit schemes with interest rates ranging from 3.00% p.a. to 5.25% p.a., ensuring funds are secured over a set period without allowing for additional deposits or early withdrawals. These interest rates vary based on the chosen term length.

Features and Benefits of PNB Fixed Deposits:

• Tenure Range: 7 months to 120 months (10 years)
• Peak Interest Rate: 6.30% p.a.
• Senior Citizen Incentive: Additional 0.50% interest over standard rates
• Minimum Deposit: Depends on the specific scheme
• Nomination Facility: Available
• Loan/Overdraft Facility: Offered by the bank
• Term Deposit Options: Includes specialized schemes like Sugam Term, Multi-Benefit, Special, Ordinary, and Anupam Term Deposits

These schemes are designed to cater to diverse customer needs, providing tailored financial solutions.

Types of PNB FD Schemes:

PNB offers various interest rates for its term-wise fixed deposit options, addressing individual investment goals and financial requirements.

Comparing PNB with Other Banks' FD Rates:

It's essential to compare the FD rates among different banks to maximize returns on your investment.

How to Invest in a PNB Fixed Deposit:

Opening a PNB FD account is feasible through multiple platforms like Mobile App, Internet Banking, or offline.

1. Internet Banking:
   • Log into the PNB NetBanking platform.
   • Select ‘Open Fixed Deposits’.
   • Provide necessary details, nominee information, and maturity preferences.
   • Request a representative for document submission aid.
   • Post-verification, the FD certificate is dispatched to your address, with confirmation via SMS once the application and KYC documents are validated.
2. Mobile App - PNB Bank App:
   • Download and sign in to the PNB Bank App.
   • Choose ‘Open FD’ option.
   • Input deposit and nominee details, then proceed with verification assistance.
   • A representative carries out full verification.
   • Following verification, the FD is established, with confirmation sent through email and SMS.
3. Offline PNB FD Opening: Visit a PNB branch to submit the FD application along with the required documents and deposit.

Upon successful application, an FD certificate is sent to your registered address, along with an SMS notification.

Eligibility to Open a PNB FD Account:

Eligible candidates for a PNB fixed deposit account encompass:

• Resident individuals
• Non-resident Indians (NRI)
• Hindu Undivided Families (HUFs)
• Sole proprietorships, partnership firms, limited companies
• Registered societies, trusts, and associations

Documents Required to Open a PNB FD:

• Identification Proof: Aadhaar, Voter ID, driver's license
• PAN Card
• Address Proof: KYC documents, utility bills
• Passport-Size Photos
• Bank Account Statements

Tax Implications on Punjab National Bank Fixed Deposit:

PNB offers a tax-saving FD enabling savings up to Rs. 1,50,000 p.a. under Section 80C of the Income Tax Act. However, regular FDs do not avail tax benefits under this section. Interest earned on PNB FDs is taxable according to applicable tax slabs, with a TDS of 10% for interest exceeding Rs. 40,000 annually (or Rs. 50,000 for senior citizens). If PAN details are not provided, a 20% TDS rate applies.

Loan Against Punjab National Bank FD:

PNB allows loans up to 90% of the FD amount, with interest rates varying from 4% to 6.3%.

Premature Closure of Punjab National Bank Fixed Deposit:

Most PNB Fixed Deposits can be terminated prior to maturity, excluding tax-saving FDs, with a 1% interest rate penalty depending on bank terms.

In conclusion, PNB Fixed Deposits offer a secure and beneficial strategy to enhance financial savings. By fully understanding the features, advantages, and required procedures, investors can make informed decisions aligning with their financial objectives.