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Punjab National Bank Recurring Deposit Rate

Punjab National Bank has a significant presence in the northern regions especially in Punjab, Haryana, New Delhi, Chandigarh etc., The bank provides employment for over 70,000 individuals. The bank offers competent products and services, they are customized as per the requirement of the customers. The interest rates are competent, the solutions are extended to urban, semi-urban and rural regions in the northern part of India.

What is a Recurring Deposit?

Punjab National Bank Recurring Deposit Rate

Recurring deposit is a special kind of term deposit offered by most banks in India. The arrangement under this deposit account requires the account holder to invest a fixed amount every month into their recurring deposit account. The investment made will earn interest at a rate applicable to fixed deposits. The recurring deposit account can be initiated with a minimum contribution of Rs. 500 and Rs. 1000. The tenure can be 6 months to 10 years. It is suitable for investors who intend to commit on investing over the short or medium or long term. The short tenure of 6 months especially works well for individuals who do not have a predictable source and quantum of income. An investor opening the recurring deposit account must determine the monthly contribution and tenure. Based on these two aspects the interest rates are determined. The interest rates for the recurring deposit account is like that of fixed deposits. The maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If the installment is delayed or missed, a penalty is levied in the form of reduced interest rate. The maturity value which is eventually paid out will be will be lower than the indicated value. The rate of penalty will be indicated upfront. Interest is compounded on a quarterly basis in recurring deposits. Account holder can avail loans against the collateral of recurring deposit up to 90% of the deposit value.

Recurring Deposit from Punjab National Bank

PNB Recurring Deposit Rates

The recurring deposits from Punjab National Bank are designed to encourage account holders to invest regularly. The minimum amount that needs to be deposited as monthly installment is Rs. 100/-, the amount can be incremental in multiples of Rs. 100/- thereof. There is no maximum limit applicable as monthly installment. The tenure can range between 6 months to 120 months, the incremental tenure is 1 month starting with a minimum of 6 months. Loans and overdraft facility is available on recurring deposit with PNB. Nomination facility is also available. The interest rates are updated and published on the official website of PNB from time to time. The latest interest rates are applicable as on the date of deposit. TDS is applicable on interest earned at 10.3%, the bank will provide the TDS certificate at the end of assessment year as applicable.

The types of Recurring deposit available with PNB are –

  • PNB Recurring Deposit Scheme
  • PNB Special Recurring Deposit Scheme
  • PNB Recurring Deposit e-RD Scheme

PNB Recurring Deposit Scheme

Eligibility for PNB Recurring Deposit Scheme

  • Individual (singly or jointly) can apply (jointly with family members)
  • Minor of 10 years and above can apply
  • Minors below the age of 10 years can apply under guardianship of Natural/legal guardian.
  • Proprietorship/Partnership Firm, Commercial Organization, Company / Corporate Body, Hindu Undivided Family, Association, Club, Society, Trust or Religious/Charitable Educational Institutions, Municipality or Panchayat, Government or Quasi-Government body
  • Illiterate and blind persons can also open recurring deposit accounts with the bank

Features of PNB Recurring Deposit Scheme

  • Rs, 100/- is the minimum amount of deposit
  • Incremental installment in multiples of Rs. 100/-
  • Tenure – minimum 6 months; maximum 120 months
  • Incremental tenure in months – 1 month after minimum 6 months
  • Maturity value is on the same day of last installment or due one month after deposit of last installment whichever is later
  • Penalty will be charged at Rs. 1 for Rs. 100 per month for non-deposit of pending installments before the maturity date
  • For the recurring deposit held, loans and overdraft facility is available to the extent of 80% deposit value

PNB Special Recurring Deposit Scheme

Eligibility for Special Recurring Deposit

  • Govt. Institutions, Pvt. Institutions, PSUs, Corporate Bodies etc., can open
  • Account will be in the Name of the institution A/C Name of the employee
  • Company can open accounts with 19 employee or 75% of the eligible employee whatever is lower

Features and benefits of PNB Special Recurring Deposit Scheme

  • Minimum period from 6 Months to 120 months
  • Minimum installment should be Rs. 10/- according to PF deductions of the employees
  • Additional installment should be in multiples of Rs. 1 /- thereof
  • No penalty is applicable on missed installments
  • Interest is applicable as per CARD rate
  • No premature withdrawal is allowed on the deposit
  • Nomination facility is available
  • TDS is applicable as per rules

PNB Recurring Deposit Scheme (e-RD)

Eligibility for Recurring Deposit Scheme (e-RD)

  • Internet banking users can apply for this scheme
  • Existing savings or current account holders can apply
  • mode of operation, nomination & Sr.Citizen preferential rate shall remain the same from which the recurring deposit is to be funded
  • Acceptance of terms & Conditions is mandatory prior to issue of e-RD

Features and benefits of Recurring Deposit Scheme (e-RD)

  • Tenor of deposit is dependent on scheme type
  • Nomination will align with the nomination of the funding account
  • Maturity value will be credited as scheduled into the funding account
  • For closure or pre-mature closure of e-RD account, the account holder has to visit the bank’s main branch
  • Rate of interest is as per card rate
  • Nomination facility is available
  • TDS is applicable as per rules

Interest rates offered by Punjab National Bank on Recurring Deposits

Punjab National Bank offers competitive interest rates on recurring deposit schemes. They also extend special additional interest rate for senior citizens.

Rate Of Interest On Single Domestic Term Deposits (TD) And NRE Term Deposits Of Upto Rs.10 Cr

W.E.F. 01.11.2018

W.E.F. 01.11.2018

W.E.F. 01.11.2018

W.E.F. 01.11.2018

Domestic TD Less Than Rs.1 Cr.Domestic TD Rs.1 Cr. To Rs 10 Cr #W.E.F. 01.11.2018NRE TD Less Than Rs. 1 CrNRE TD Rs. 1 Cr. To Rs. 10 Cr.
PeriodROI (% p.a.)A.Y.*For Senior Citizen ROI (% p.a.)ROI (% p.a.)
7 to 14 days5.75.76.26
15 to 29days5.75.76.26.25
30 to 45 days5.75.76.26.25
46 to 90 days6.356.356.856.55
91 to 179 days6.356.356.856.5
180 days to 270 Days6.356.46.856.5
271 days to less than 1 year6.356.456.856.5
1 year6.756.927.256.75
555 days**6.857.167.356.85
above 1 year & up to 3 years6.756.927.256.5
above 3 year & up to 5 years6.256.826.756.25
above 5 years & up to 10 years6.257.276.756.25

Special rates for Senior Citizens applicable on Recurring Deposit with Punjab National Bank

The Senior citizens shall get an additional rate of interest of 50 bps over applicable card rates for all maturities on domestic deposits of less than Rs. 1 Crore. In case of staff members as well as retired staff members who are also Senior Citizens, maximum rate of interest to be allowed over applicable card rate shall be 150 bps except in case of PNB Tax Saver Fixed Deposit Scheme, where the maximum rate of interest to be allowed over applicable card rate is 100 bps.

These revised interest rates will be applicable to the fresh deposits and renewal of existing Term deposits with effect from 01.11.2018 The above rates shall also be applicable to NRE term deposits.

Frequently asked questions: Punjab National Bank Recurring Deposits

1. What documents qualify for opening a Punjab National Bank recurring deposit scheme?

Identity Proof:

copy of passport, PAN card, Aadhar card, Voter ID, Driving license, Ration card, Government ID card, Senior citizen card

Address Proof:

copy of passport, Aadhar card, electricity bill, phone bill, bank statement with cheque

2. How to apply for an RD with Punjab National Bank?

There are multiple means of applying for an RD with PNB. One can visit the official website and sign up giving the bare minimum details including name and contact details and intent to open recurring deposit. A customer representative will get in touch to guide the individual or potential customer through the entire process. Alternatively, the potential customer can walk into the nearest branch and fill out the form applicable for opening recurring deposit account. The documents required for opening the account are identity proof, address proof, initial deposit amount. These documents along with photo and filled application form needs to be submitted for further processing.

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