PNB Fixed Deposit Scheme
Punjab National Bank, often known as PNB is one of the largest public sector banks in India. It has many interest investment products on offer, and among them, the fixed deposit scheme is very popular. The PNB fixed deposit interest rate is high and this makes the customers choose the PNB fixed deposit over the fixed deposits of other banks. Read on to know more about these fixed deposit schemes and how you can benefit from them.
How does the PNB fixed deposit work?
A fixed deposit is a type of investment where the sum of money you invest (principal) is locked in an account for the selected duration of time. The principal earns dividends based on the PNB fixed deposit rates. The interest rates in an FD are fixed and this is where the investment gets its name from. As a result, the earnings are also fixed and there is very little room for any risk or fluctuations in the yields. The tenure of the fixed deposit is fixed too. You can choose your fixed deposit scheme for tenures ranging from seven days to 10 years. PNB pays a higher fixed deposit interest rate on FDs that are made for longer periods of time and vice versa.
Once the investment matures, the bank credits the entire amount, which is the principal along with the interest earned, back to you. You have the option to withdraw the money or re-invest it in another fixed deposit scheme. The duration of the FD is fixed so premature withdrawals are not encouraged. PNB allows premature withdrawals, but such actions often lead to penalties.
Some of the interesting PNB fixed deposit schemes
- PNB Pranam Fixed deposit scheme – This is a fixed deposit especially designed for the senior citizens of the country.
- PNB Tax Shield Fixed deposit scheme – As the name suggests, this is a special tax-saver fixed deposit scheme that helps you to save tax under Section 80C.
- PNB Varshik Aay Yojna Fixed deposit scheme – This is a fixed deposit scheme available for all people, including minors over the age of 10 who can open the fixed deposit jointly with a parent.
- PNB Growth Fixed deposit scheme – Here, you can make a single deposit of INR 21 crore and then multiple deposits of INR 2 crores each, amounting to a maximum fund value of INR 10 crores.
Benefits of PNB fixed deposit schemes
Here are some of the most useful advantages you get when you invest in a good fixed deposit scheme from Punjab National Bank:
1. Disciplined savings
In a fixed deposit, you have no option but to stay invested till the scheme comes to an end. This is a very good way to stay disciplined. You cannot withdraw the money and so your investment stays intact and you continue to earn the interest at a steady rate.
2. Assured returns
Next, you get assured returns when you open an FD with PNB. As stated, the PNB fixed deposit interest rate is fixed and this protects you from the fluctuating financial market risks. Whether the market performs well or poorly, there is no effect on your earnings. Your FD continues to fetch the promised yields and your investment keeps growing.
3. Ease and convenience
These days, everything from buying groceries to selling cars is done online. This is why everyone looks for digital convenience when they decide to open a fixed deposit account from a leading Indian Bank like Punjab National Bank. Thankfully, PNB doesn’t disappoint. The bank offers some excellent fixed deposit schemes online. You can easily and conveniently open the PNB fixed deposit account online by using the mobile banking app or website. It hardly takes a few minutes and can be done in a safe and smooth manner by clicking some buttons. This saves your time and effort and makes the PNB fixed deposit schemes all the more attractive.
Another wonderful benefit you get is the risk element. Every investor has his or her own risk appetite. While some people enjoy taking risks and investing in mutual funds and equities, others like the low-risk investments like the fixed deposits. The fixed deposit scheme from PNB honours your risk capacity and allows you to invest as per your preferences.
Punjab National Bank offers a lot of flexible options when it comes to choosing the best fixed deposit schemes. You can choose from a short duration of just a week or a very long duration of almost years. Choose an option that matches your requirements.
6. Tax saving
You get to save tax when you start a PNB tax-saving fixed deposit. This is because tax benefits up to INR 1.5 lakhs are available under Section 80C of the Indian Income Tax Act for contributions made to this specific fixed deposit account for a minimum tenure of 5 years..
Keep these factors in mind and you will understand why the PNB fixed deposit scheme is so beneficial. Compare the PNB fixed deposit interest rate with the other fixed deposit interest rates and you will see how competitive it is in nature.
As you can clearly see from the points mentioned above, you get several benefits when you open a PNB fixed deposit account. From being able to enjoy the high PNB fixed deposit rates to getting the flexibility you need in your investment, the fixed deposit schemes deliver in many ways. So go online, analyse the options and then open a good fixed deposit from the Punjab National Bank and meet your financial goals with ease and precision, while sticking to your risk capacity too.