Punjab National Bank (PNB) is one of India's leading public sector banks, offering a range of financial products and services to its customers. They offer Recurring Deposit (RD) accounts, a secure savings option with guaranteed interest rates. PNB offers competitive RD interest rates, typically ranging from 6% to 8% per annum, which are generally higher than savings account interest rates.
The interest rates on PNB RDs play a crucial role in determining the returns earned by investors over the deposit tenure. Also, these interest rates may vary across different tenures and deposit amounts, allowing customers to choose the option that aligns best with their financial goals and risk appetite. Investors can better calculate and estimate the potential returns on their investments by understanding RD interest rates.
RD Interest rates offered by PNB vary depending on the chosen deposit tenure.
Longer tenures (e.g., 5-10 years) generally offer higher interest rates and shorter tenures (e.g., 6 months - 1 year) typically come with lower interest rates.
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PNB RD Interest Rates 2024
Individuals considering investing in PNB's RD schemes should keenly observe the updated interest rates. These rates will not only impact the potential returns on their investments but also influence their financial planning decisions for the year ahead.
PNB RD Interest Rates For General Public
The table below presents the current PNB RD interest rates as of May 16, 2024, for the general public.
| Tenure | RD Interest Rates for General Public (in % p.a.) |
|---|---|
| Up to 270 days | 4.40% |
| 271 days - 364 days | 4.40% |
| 1 year | 5.00% |
| 1 year - 3 years | 5.00% |
| 3 years - 5 years | 5.25% |
| 5 Years - 10 Years | 6.50% |
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Note: Rates mentioned are indicative and may vary slightly depending on the specific PNB branch and account type.Not sure of your credit score? Check it out for free now!
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PNB RD Interest Rates For Senior Citizens
The table below presents the current PNB RD interest rates as of May 16, 2024, for senior citizens.
| Tenure | RD Interest Rates for General Public (in % p.a.) |
|---|---|
| Up to 270 days | 4.90% |
| 271 days - 364 days | 4.90% |
| 1 year | 5.60% |
| 1 year - 3 years | 5.60% |
| 3 years - 5 years | 5.75% |
| 5 Years - 10 Years | 5.75% |
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Note: Rates mentioned are indicative and may vary slightly depending on the specific PNB branch and account type.Features of PNB RD Interest Rate
PNB offers customers a range of investment options. That includes the popular Recurring Deposit (RD) scheme. Refer to the table below to have a clear overview of the various factors that influence the interest rates and the associated returns on their investments.
| Feature | Description |
|---|---|
| Minimum Deposit | Typically ₹100 (amount may vary depending on the scheme) |
| Tenure Range | 6 months to 10 years |
| Interest Rate Range (May 2024) | 4.40% - 5.75% p.a. (varies by tenure & account type) |
| Interest Compounding | Semi-annually |
| Senior Citizen Benefit | Higher interest rates (up to 0.75% more) for senior and super senior citizens |
| TDS Deduction | Applicable as per income tax rules |
| Penalty for Late Payment | ₹1 per ₹100 of the installment amount (may vary) |
| Maturity Instructions | Payment on maturity or 1 month after the deposit of the last installment |
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Note: This table provides a general overview. It's advisable to consult the official PNB website or branch for the latest information and specific details on available schemes.Do you need an instant loan?
PNB RD Calculator
Determining the potential returns and maturity value of an RD can involve complex calculations, taking into account factors such as the deposit amount, tenure, and interest rates. To simplify the process and to help customers make informed decisions regarding the PNB RD scheme, you can use an online RD calculator that helps you estimate the maturity amount of your recurring deposit investment.
| RD Maturity Date | : |
| Total Invested Amount | : ₹1,000 |
| Total Interest Earned | : ₹532 |
| Total Maturity Amount | : ₹12,532 |
It considers factors like:
- Monthly Deposit Amount: The fixed amount you plan to contribute every month towards your RD.
- Tenure: The total period of your RD investment, typically ranging from 6 months to 10 years.
- Interest Rate: The rate offered by the bank on your RD account. This rate determines your earnings on the deposit.
Steps to Use Online RD Calculator
Here's a breakdown of the steps to use an online RD calculator to get the estimated maturity amount for your Recurring Deposit.
- Step 1: Input your monthly deposit amount, preferred tenure
- Step 2: Enter the estimated interest rate.
- Step 3: Click "Calculate" to see your estimated maturity amount.
Interest Rates From Top Banks For RD
Recurring Deposits (RDs) are a popular choice for individuals seeking a disciplined savings plan. The RD interest rates offered by banks play a pivotal role in determining the overall profitability of these investments.
Refer to the table below for a comprehensive overview of the interest rates for RDs from some of the top banks.
| Banks | RD Interest Rates for General Public (% p.a) |
RD Interest Rates for Senior Citizens (% p.a) |
|---|---|---|
| Punjab National Bank RD Interest Rates | 6.00% to 7.25% | 6.50% to 7.75% |
| Kotak Mahindra Bank RD Interest Rates | 6.00% to 7.40% | 6.50% to 7.90% |
| Axis Bank RD Interest Rates | 5.75% to 7.20% | 6.25% to 7.85% |
| Bank of Baroda RD Interest Rates | 5.75% to 7.25% | 6.25% to 7.75% |
| Bank of Maharashtra RD Interest Rates | 5.50% to 6.25% | 6.00% to 6.75% |
| City Union Bank RD Interest Rates | 6.25% to 7.00% | 6.50% to 7.50% |
| DBS Bank RD Interest Rates | 6.00% to 7.50% | 6.50% to 8.00% |
| Dhanalakshmi Bank RD Interest Rates | 6.50% to 7.25% | 6.50% to 7.75% |
| SBI RD Interest Rates | 6.50% to 7.00% | 7.25% to 7.50% |
| ICICI RD Interest Rates | 4.75% to 7.20% | 5.25% to 7.75% |
| HDFC RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Yes Bank RD Interest Rates | 6.10% to 7.75% | 6.60% to 8.25% |
| Bandhan Bank RD Interest Rates | 4.50% to 7.85% | 5.25% to 8.35% |
| Bank of India RD Interest Rates | 4.50% to 6.00% | 5.00% to 6.50% |
| Indian Bank RD Interest Rates | 4.50% to 7.25% | 5.00% to 7.75% |
| Indian Overseas Bank RD Interest Rates | 5.75% to 7.30% | 6.25% to 7.80% |
| Union Bank of India RD Interest Rates | 5.75% to 6.50% | 6.25% to 7.00% |
| IDBI Bank RD Interest Rates | 6.25% to 7.00% | 6.75% to 7.50% |
| Canara Bank RD Interest Rates | 6.15% to 7.25% | 6.65% to 7.75% |
| Saraswat Bank RD Interest Rates | 7.00% to 7.50% | 7.50% to 8.00% |
| South Indian Bank RD Interest Rates | 5.00% to 7.40% | 5.50% to 7.90% |
| TMB RD Interest Rates | 6.75% to 7.75% | 7.00% to 8.25% |
| Federal Bank RD Interest Rates | 5.75% to 7.50% | 6.25% to 8.00% |
| IndusInd Bank RD Interest Rates | 7.00% to 7.75% | 7.50% to 8.25% |
| Karnataka Bank RD Interest Rates | 5.80% to 7.40% | 6.20% to 7.90% |
| Karur Vysya Bank RD Interest Rates | 6.25% to 7.50% | 6.25% to 8.00% |
| Jammu and Kashmir Bank RD Interest Rates | 5.75% to 7.10% | 6.25% to 7.60% |
| Post Office RD Rate | 6.50% | 6.50% |
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Note:The interest rates stated are subject to change. For the latest rates, visit the official website.Did you know, besides banks, you can also invest in Post Office RD and calculate the return with a post office RD calculator.
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PNB RD Interest Rate Calculation
Let's assume a monthly recurring deposit of ₹1,500 for a duration of 3 years with an annual interest rate of 5.75%, compounded quarterly.
Given:
- Monthly Recurring Deposit (RD) amount: ₹1,500
- Term (in years): 3 years
- Interest Rate (p.a.): 5.75%
- Compounding Frequency: Quarterly (4 times a year)
Compound Interest = P × [(1 + r/n)^(n × t) - 1]
= ₹54,000 × [(1 + 0.0575/4)^(4 × 3) - 1]
= ₹54,000 × [1.0143^12 - 1]
= ₹54,000 × 0.1893
= ₹10,222.20
Total Maturity Value = Total amount deposited + Compound Interest
= ₹54,000 + ₹10,222.20
= ₹64,222.20
Therefore, if you deposit ₹1,500 per month for 3 years in a PNB RD account at 5.75% interest p.a. compounded quarterly, the total maturity value will approximately be ₹64,222.20.
Types of PNB RD Schemes
RD accounts are a popular investment option for individuals looking to build a disciplined savings habit and earn attractive returns on their accumulated funds. PNB offers two main types of Recurring Deposit (RD) schemes.
PNB Recurring Deposit Scheme
- PNB offers a range of Recurring Deposit (RD) schemes for systematic savings with attractive returns.
- RD accounts promote disciplined savings habits and provide flexible tenure, installment amount, and interest rate options.
- PNB's standard RD account: Age 10+ or minors with a guardian, minimum ₹100 deposit, tenure 6 months to 10 years, quarterly compounded interest.
PNB Recurring Deposit (E-RD)
- The e-RD scheme is available only for existing PNB internet banking users.
- It offers the same features as the regular RD scheme, but it can be opened and managed online.
The table below summarizes the two PNB RD schemes.
| Feature | PNB Recurring Deposit Scheme | PNB Recurring Deposit (E-RD) |
|---|---|---|
| Eligibility | 10 years and above (Minors below 10 years with guardian) | Existing PNB internet banking users only |
| Minimum Deposit | Varies by branch (around ₹100) | Varies by branch (around ₹100) |
| Tenure | 6 months to 10 years | 6 months to 10 years |
Tax Benefits on PNB RD Interest Rates
PNB (Punjab National Bank) offers Recurring Deposit (RD) accounts, which provide interest income to account holders. Here are some key points regarding tax benefits on interest earned from PNB RD accounts.
- Tax Deduction at Source (TDS): Interest income earned on RDs is subject to TDS if the total interest income from all sources exceeds the threshold limit set by the Income Tax Department. Currently, TDS is deducted at 10% if the interest income exceeds Rs. 40,000 per annum for individuals (Rs. 50,000 for senior citizens).
- Tax Exemption under Section 80C: Investments in RDs do not qualify for deduction under Section 80C of the Income Tax Act. However, some other tax-saving instruments like PPF, National Savings Certificate (NSC), and Equity-Linked Savings Schemes (ELSS) are eligible for deduction under Section 80C.
- Form 16A: PNB is required to issue Form 16A if the interest income exceeds the TDS threshold limit. This form reports the interest income earned and the TDS deducted, which the account holder can use while filing their ITR.
Note: Tax laws and regulations can change. It's advisable to consult a tax advisor for personalized advice on maximizing tax benefits on your investments.
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Steps to Open PNB RD Account
Opening a Recurring Deposit (RD) account is a smart way to start the habit of saving and building a sizable corpus over time. PNB offers attractive RD schemes that allow you to invest a fixed amount at regular intervals.
Here are the key points for opening a PNB Recurring Deposit (RD) account, both offline and online.
Offline Process (At Branch)
- Visit the nearby PNB branch.
- Submit the filled account opening form.
- Provide ID proof, address proof, and photographs.
- Give the initial deposit amount.
- Get the account number and passbook.
Online Process (Through Website)
- Visit the PNB website and find the online RD account opening option.
- Fill out the online application form and upload the required documents (ID, address proof, photos).
- Provide existing PNB account details for the initial deposit and apply.
- The bank will verify and open an account.
- Receive the account number via email/SMS.
Eligibility Criteria to Open PNB RD Account
To know if you are eligible, know the key eligibility criteria to open a Recurring Deposit (RD) account with Punjab National Bank (PNB).
- You can be a single individual or open a joint account with another person.
- There is no minimum age requirement, but minor accounts (below 18 years) require a legal guardian.
- You should be a resident of India.
- Government institutions, private institutions, PSUs, corporate bodies, etc., can open RD accounts.
- The minimum number of employees required to open an institutional RD account is 10 or 75% of eligible employees, whichever is lower.
Documents Required to Open PNB RD Account
Here are the documents typically required to open a Recurring Deposit (RD) account with Punjab National Bank (PNB).
- Application form
- PAN Card
- Proof of address (Aadhaar Card, Passport, Utility Bill, Rent Agreement, etc.)
- Proof of identity (PAN Card, Aadhaar Card, Voter ID, Driving License, etc.)
- Passport-size photographs
PNB RD Premature Withdrawal
Withdrawing your PNB RD account before maturity is possible, but there will be a penalty. Consider these points before you withdraw:
- Penalty: A 1% penalty will be charged on the amount you withdraw prematurely.
- Interest Rate: You'll earn interest at the rate applicable for the period your deposit ran, minus the 1% penalty. The bank might also offer the card rate (prevailing interest rate for smaller deposits).
Note: In some cases, you might avoid the penalty if you reinvest the withdrawn amount in another PNB term deposit scheme for a period longer than the remaining period of your original RD.
Steps to Close PNB RD Account
You can close your PNB RD (Recurring Deposit) account through internet banking or their mobile app.
- Step 1: Visit your PNB home branch in person.
- Step 2: Collect an account closure form from the bank.
- Step 3: Fill out the form accurately, specifying your RD account details and closure request.
- Step 4: Submit the completed form along with the required documents, which may include:
- Your ID proof (e.g., PAN card, Aadhaar card)
- Address proof
- Your PNB passbook
- Debit card linked to the RD account (if any)
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Frequently Asked Questions
PNB RD interest rates vary depending on your age and the deposit term. They range from 6.00% to 8.05% p.a., with senior citizens getting higher rates.
Yes, you can prematurely withdraw funds from your PNB RD account, but a 1% penalty will be applied to the interest earned.
Yes, PNB RDs offer nomination benefits. In case of the account holder's death, the nominee you designate will receive the maturity amount of the RD.
Yes, PNB offers loans against recurring deposits (RD). But, the loan terms are subject to the bank's internal guidelines and may vary depending on the specific RD scheme.
Recurring deposits (RDs) themselves aren't taxed, but the interest earned on them is. The bank withholds a tax (TDS) if it exceeds ₹40,000 per year. You can claim the tax benefit while filing your income tax return.
Using a PNB RD calculator online is straightforward. Just enter your desired monthly investment amount, tenure (duration), and the current PNB interest rate for that tenure. The calculator will then estimate your maturity value and total interest earned.
No, unlike savings accounts, recurring deposits (RDs) are not for anytime withdrawal. They are fixed deposits where you make regular deposits for a set term. Early withdrawal is possible but may come with penalties and reduced interest.
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