Punjab National Recurring Deposit Interest Rates

Punjab National Bank Recurring Deposit

Punjab National Bank Recurring Deposit

A Recurring Deposit (RD) is a safe and convenient way of saving money while also earning interest on it. An RD allows you to deposit a fixed amount on a regular basis with your bank, and it is similar to a Fixed Deposit (FD) in that you enjoy a higher rate of interest than a savings account for the same principal amount.

The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.

Advantages to opening an RD account:

  • Interest Rate earned is generally equal to that of an FD
  • Safe and secure form of investment
  • Secure from fluctuations and volatility
  • Ideal for starters
  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis
  • Can be opened with small minimum amount.
  • Lump sum received at maturity, including the interest
  • The rate of interest is higher as compared to an ordinary saving bank account
  • Flexible tenures to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.

Punjab National Recurring Deposit

An RD in Punjab National Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make these installments to a Punjab National Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Key Features of Punjab National Bank RD Account

  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at opening of the RD.
  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from a few months to several years depending on your financial goal
  • Attractive interest rates: Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment.
  • Quick liquidity options and access to your funds when you need it; nominal penal charges apply.

Types of Recurring Deposits Offered by Punjab National Bank:

Regular Recurring Deposit:

  • Minimum Opening Balance for Punjab National Bank RD account: Rs. 100 and in multiples thereof
  • Period of RD: 6 months to 120 months in multiple of 1 month
  • Preferential interest rate for senior citizens
  • TDS on Interest is applicable
  • Deposit period: Minimum 12 months to 24 months
  • Nomination facility available
  • Premature Closure of RD Allowed
  • Loan/ Overdraft against deposit is available

PNB e-RD scheme:

  • This scheme is available to Internet Banking Users only.
  • For existing customer having operative Saving / Current Account.
  • e-RD will be issued to only those who have valid PAN card held in the funded account.
  • Proceeds on maturity shall be credited in the account through which the term deposit was funded.
  • In case of closure/premature closure, the home branch needs to be visited

Punjab National Recurring Deposit Interest Rates

Punjab National Bank RD interest rates are similar to rates offered for FD accounts. You can get the best rates for a Punjab National Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Punjab National Bank RD interest rates including Punjab National Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Citi, it is advisable to check with the bank directly.

Punjab National Bank recurring deposit interest rates 2015 – 2016

The current RD Interest rate ranges from 6% to 7% for normal Indian residents including minors and HUF. It is advisable to contact the bank directly for the revised and up to date interest rates as they fluctuate on a regular basis.

Punjab National Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for normal customers. For the latest revised or updated interest rates, it is advisable to contact the bank directly.

How to apply for an RD in Punjab National Bank:

If you are an existing Punjab National Bank Customer, then you can book an e-RD right away. You just need to login to your net banking account for easy booking of Recurring Deposits.

If you are not a Punjab National Bank Customer, then you will need to open a Punjab National Bank Savings Account in order to book a Punjab National Bank Recurring Deposit. Opening one is simple and quick. You can visit your nearest PNB branch and have a bank representative help you with the process.

Punjab National Bank Recurring Deposit Calculator:

You can make use of any trusty online RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy— you need to enter the instalment amount you want to invest monthly, the duration, the interest rate, method of compounding (monthly, quarterly, half-yearly or annually) and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit. Using an RD calculator helps you find out how much you need to save. You can try various amount and opt for the one that helps achieve your financial goal and suits your budget.

Punjab National Bank RD FAQs

What is the eligibility criteria to open an RD account with PNB?

  • Individual (singly or jointly) with others.
  • Minor who have attained the age of 10 years and above in his/her own name (proof of age required)
  • Minors below the age of 10 years 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 accounts.

What is the minimum and maximum amount required to open an RD with Punjab National Bank?

The minimum opening balance for a regular recurring deposit with Punjab National Bank is Rs. 100.

What is the minimum deposit period?

The minimum deposit tenure is 6 months and can go up to as high as 120 months.

How do I apply for a regular recurring deposit?

You can open a Regular Recurring Deposit online if you are an existing customer. You can log in to your net banking account and open an RD from the convenience of your home.

If you are a new customer, you can start with opening a savings account, which can be linked with an RD account.

Alternately, you can visit your nearest branch and submit the Deposit Account form.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence, PAN Card, ID Proof
  • Any other KYC documents as required by the bank