Punjab National Bank (PNB) Recurring Deposit (RD) Rates

Punjab National Bank (PNB), one of India’s most trusted banks, offers a variety of Recurring Deposit (RD) schemes for individuals looking to grow their savings in a disciplined and secure manner. With competitive interest rates and flexible tenures, PNB's RD accounts are ideal for people seeking a safe, low-risk investment to build a financial cushion systematically. Continue reading to learn more about PNB bank RD interest rates and schemes. 

Punjab National Bank Recurring Deposit Scheme Highlights for 2024

For the year FY 2024, PNB's Recurring Deposit (RD) scheme offers several notable features, including:

PNB RD Interest Rate 2024

Here is the PNB RD Interest Rates for 2024:

PNB Senior Citizen RD Interest Rate

The below table provides the PNB Senior Citizen RD Interest Rates:

Types of PNB RD Accounts

Punjab National Bank (PNB) offers three types of Recurring Deposit (RD) schemes, each designed to cater to different needs and preferences:

• PNB Recurring Deposit Scheme 

This is a standard RD option with a minimum deposit of Rs.100 and multiples of Rs.100. Tenures range from 6 to 120 months. Loans or overdrafts are available for up to 80% of the deposit value.

• PNB Special Recurring Deposit Scheme

This RD scheme is designed for institutions, companies, and PSUs to open RDs on behalf of employees. The minimum contribution starts at Rs.10, with no penalties for missed payments. The institution can open the accounts with a minimum 10 employees or 75% of the eligible employees, whichever is lower. Premature withdrawal is not permitted, and standard TDS rules apply.

• PNB e-RD Scheme 

This scheme is available to existing PNB customers via online banking, allowing flexible tenures. The maturity amount is automatically credited to the linked account, though account holders must visit a branch for early closure.

How to Calculate PNB Bank RD Interest Rate 2024?

PNB compounds the interest on RD every quarter. Here is the formula to calculate RD interest and maturity amount:

A = P x (1 + r/n) ^ (n x t)

• A = Maturity Amount
• P = Principal Amount
• r = Interest rate
• n = Number of times interest is compounded
• t = Time

For example, if you deposit Rs. 1,000 per month for two years at a 6.80% interest rate, the estimated maturity amount will be around Rs. 25,766. The calculator simplifies interest calculations, allowing you to plan deposits more accurately.

A = 1000 (1+0.068/4) ^ (4 x 24)

A = Rs. 25,766

Interest earned = Rs. 1,766

Use our PNB RD Calculator to easily calculate your RD interest and maturity amount in seconds.

Features of PNB RD Interest Rates

Following are some of the most important features of the Punjab National Bank recurring deposit features:

• Low Monthly Instalments

RD accounts can be opened with a minimum deposit of Rs. 100, making it accessible to people from various financial backgrounds. There is no limit on the maximum amount you can invest in RD schemes.

• Flexible Tenure Options

PNB RD schemes offer flexible tenures, from a minimum of 6 months to a maximum of 10 years. Depositors can choose a suitable tenure based on their savings goals.

• Premature Withdrawal Facility

PNB RD accounts allow premature withdrawals, though they come with a 1% penalty. This feature provides emergency liquidity while encouraging depositors to plan withdrawals carefully to avoid penalties.

• Exclusive Benefits for Senior Citizens

Senior citizens (Aged above 60 but below 80) enjoy an additional interest rate of up to 0.50%. Super senior citizens (Aged above 80) get an additional interest rate of up to 0.80% on the RD scheme. 

• Loan Facility

PNB offers loans against the RD balance, ensuring that depositors can access funds without prematurely closing their RDs, which is helpful for meeting urgent financial needs.

• Nomination Facility

PNB RD accounts include a nomination feature, allowing depositors to appoint a nominee who would receive the deposit benefits in the event of unforeseen circumstances. 

Eligibility for Opening a PNB RD Account

To open a Recurring Deposit (RD) account with Punjab National Bank (PNB), you must meet certain eligibility requirements. Here is a breakdown of who is eligible:

• Individuals (Either singly or jointly with another person).
• Minors (10 years and above) 
• Minors (below 10 years) under the guardianship of a parent or legal guardian.
• Proprietorship Firms 
• Partnership Firms 
• Companies 
• Corporate organisations
• Hindu Undivided Family (HUF)
• Associations, clubs, societies, trusts, religious institutions, and charitable or educational institutions
• Government bodies, municipal corporations, and Panchayats

Documents Required for Opening a PNB RD Account

To comply with the Reserve Bank of India's KYC (Know Your Customer) guidelines, you will need the following documents:

• Photographs: Recent passport-sized photos.
• ID Proof: Documents like Passport, PAN card, Aadhaar, Voter ID, or government-issued ID card.
• Address Proof: Aadhaar, Passport, utility bill, bank statement with a cheque, or any other accepted document as proof of address.

How to Open a PNB RD Account?

Opening a Recurring Deposit (RD) account with Punjab National Bank (PNB) is a straightforward process. Here is the process for opening a PNB RD account online and offline.

Online Process

1. Login to the PNB Net Banking portal with your credentials.
2. Navigate to the menu and select ‘Open Recurring Deposit Account’.
3. An RD application form will appear. Enter details such as your preferred tenure and monthly instalment amount.
4. After verifying the information, click ‘Continue’ to submit your application and set up the RD account.

Offline Process

1. Visit your nearest PNB branch.
2. Obtain the RD account opening application form.
3. Fill in the application form by providing all the essential details including deposit tenure, instalment amount, payment mode, nominee etc.
4. Make your first deposit in cash or by using a cheque.
5. Submit the RD account application form along with copies of the required documents to the branch officials.

How to Close the PNB RD Account?

Follow the below process to close the PNB RD account:

1. Visit the PNB branch with your RD account details.
2. Obtain the RD account closure form and fill in the required details on the form. 
3. Attach the self-attested copies of the required documents with the closure form. These include KYC, PAN card, address proof, identity proof, RD account receipt, RD certificate, etc.
4. Submit the form to the branch officials.

However, if you have an e-RD account opened online via the Net Banking portal, you need to visit the branch to close the RD account. You can simply log in to the PNB Net Banking portal and click the ‘Close Account’ option in the e-RD section. Please note that this option is only available for online e-RD accounts opened via Net Banking. 

Benefits of PNB RD Account

• You can easily open your RD account online via PNB Internet Banking Online.
• RD account is a secure, risk-free investment option for conservative savers.
• You can invest at regular intervals and get interest rates similar to those of an FD without depositing a lump sum.
• RD account inculcates a habit of saving regularly and helps to secure a financial future.

PNB RD Premature Withdrawal Rules

As per the guidelines, PNB imposes a penalty of 1% for early withdrawals of Recurring Deposits (RD) before maturity. This penalty is also applicable if any instalment is either missed or delayed.

Punjab National Bank’s RD schemes in 2024 offer competitive RD interest rates, flexible tenures, and unique benefits for senior citizens. PNB’s recurring deposit options allow for a tailored savings experience.