Punjab National Bank (PNB) encourages a healthy saving habit for income regularisation through its Recurring Deposit (RD) schemes. Not just saving money, you also earn interest on your deposits. Continue reading to see what are the PNB recurring deposit options and choose the right one.

1. Recurring Deposit Interest Rates 2021 of Punjab National Bank

The interest rates mentioned in the table below are effective from 1 January 2021.

Deposit Tenure

Interest Rate for Regular Customers (% p.a.)*

Annualised Yield (% p.a.)*

Interest Rate for Senior Citizens (% p.a.)*

7 to 14 days

3.00

3.00

3.50

15 to 29days

3.00

3.00

3.50

30 to 45 days

3.00

3.00

3.50

46 to 90 days

3.25

3.25

3.75

91 to 179 days

4.00

4.00

4.50

180 days up to 270 days

4.40

4.42

4.90

271 days up to less than 1 year

4.50

4.55

5.00

1 year

5.20

5.30

5.70

Above 1 year up to 2 years

5.20

5.30

5.70

Above 2 years up to 3 years

5.20

5.44

5.70

Above 3 years up to 5 years

5.30

5.70

5.80

Above 5 years up to 10 years

5.30

6.02

5.80

*Interest rates are subject to change from time to time.

2. Different Types of Punjab National Bank RD Schemes

  1. PNB Recurring Deposit Scheme:

    This is a regular RD account where the minimum monthly instalment is Rs.100 and in the multiples of Rs.100 thereafter. There is no maximum limit on the monthly deposit amount. The tenure can range from six months up to 120 months in the multiples of one month. An attractive interest rate will be designated based on the tenure of the account.

  2. PNB Special Recurring Deposit Product:

    This account is dedicated to government institutions, private institutions, PSUs, corporate bodies and others. The account shall be opened in the name of the institution as well as the employees. The minimum deposit amount is Rs.10, according to the PF deduction of the employees. The tenure can be between 6 months and 120 months.

  3. PNB Recurring Deposit Scheme (e-RD):

    This account can only be opened by internet banking users who have savings or current accounts. The interest rates and nomination policy remains the same as that of a regular RD account. You can open an e-RD account only if you have linked a valid PAN to the account. The nominee for the e-RD account will remain the same as that of the savings/current account.

3. Punjab National Bank RD Special Features and Benefits

  • The minimum monthly deposit amount required to open an RD account is Rs.100.
  • The tenure can range from 6 months up to 120 months in general cases.
  • A competitive interest rate is assigned based on the tenure of the account.
  • Nomination facility is available.
  • Loan/overdraft facility is available against the deposit made.
  • TDS is applicable as per the prevalent rules.

4. Basic Eligibility Criteria for Punjab National Bank RD

  • Individual (singly or jointly) with others.
  • Minor who have attained the age of 10 years and above in his/her name with proof of age.
  • Minors below the age of 10 years under the guardianship of natural/legal guardians.
  • Proprietorship/Partnership Firm, Commercial Organisation, Company/Corporate Body
  • Hindu Undivided Family (HUF).
  • Association, Club, Society, Trust, or Religious/Charitable Educational Institutions.
  • Municipality or Panchayat, Government, or Quasi-Government body.
  • Illiterate and blind persons.

5. Tax Liabilities on Punjab National Bank Recurring Deposit

If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at source at 10%. This rate has been reduced to 7.5% due to COVID-19 pandemic from May 2020 to March 2021. Further, the tax levied on the returns is dependent on the tax bracket you fall into irrespective of the interest rate or other factors.

6. RD Interest Rate Calculator

Our RD calculator allows you to estimate the returns you can expect, by investing in RD over a specific period, free-of-charge.

7. Frequently Asked Questions (FAQs)

Q. What happens if I don’t deposit my instalments?

A. If you happen to miss the instalment payments for some time, but you make it before the maturity date, a penalty will be charged at Re.1 for every Rs.100 per month. Not depositing instalments until the date of maturity will lead to the bank paying the interest on a daily product basis compounded half-yearly. This policy does not apply to the PNB Special RD Product.

Q. Can I choose to receive interest payout every month?

A. The interest will only be paid out upon maturity. Monthly interest disbursal facility is not currently available.

Q. Under PNB Special RD scheme, should I mention all the employees’ names while opening the account?

A. While opening the account under PNB Special RD scheme, the institution must open the account with a minimum of 10 employees or 75% of the eligible employees, whichever is lower.

Q. How is the interest calculated in the case of PNB Special RD scheme?

A. The interest applicable to this account is the same as the card rates applicable to term deposits below Rs.1 crore. Interest will be calculated on the daily product basis and credited to the account on a half-yearly basis, i.e. in March and September of every year.

Similar Banks Offering RD

 

Similar Banks Offering RD
SBI Bank HDFC Bank ICICI Bank IDFC Bank
AXIS Bank KOTAK Bank Union Bank of India Canara Bank
Bank of Baroda IDBI Bank Bank of India Andhra Bank
Central Bank of India Allahabad Bank RBL Bank
Syndicate Bank Corporation Bank Indian bank

Make Small Investments for Bigger Returns

image
Start Investing Now