PNB introduces two new FD tenures with interest rates up to 6.1% (2024)
Punjab National Bank (PNB) has added two new tenures for fixed deposits (FD) for amounts less than Rs 2 crore.
PNB has added a new tenure of 405 days with an interest rate of 6.10 percent, effective from August 19, 2022. The other tenure which is added is 406 days to two years with an interest rate of 5.50 percent.
Deposits with maturities of more than three years and up to five years will continue to earn 5.75 percent interest. Fixed deposits maturing in 1111 days will pay 5.75 percent interest, while deposits maturing in more than 5 years and up to 10 years will pay 5.65 percent interest.
Senior Citizens According to the bank's website, senior citizens will receive an additional 50 basis points over the applicable card rates for any domestic deposit maturities of less than Rs 2 crore. Senior citizens will earn 6.60 percent interest rate on the new tenure of 405 days.
As a seasoned financial expert with a proven track record in banking and investment, I bring a wealth of knowledge and experience to shed light on the recent developments at Punjab National Bank (PNB). My extensive background in the financial sector enables me to dissect and elucidate the intricate details of the information presented.
The article highlights PNB's strategic move in expanding its fixed deposit (FD) offerings, catering to amounts less than Rs 2 crore. This expansion involves the introduction of two new tenures, each accompanied by distinct interest rates, showcasing the bank's commitment to providing diverse investment options.
Let's delve into the specifics of the disclosed details:
New Tenures and Interest Rates:
405 Days Tenure: PNB has introduced a new FD tenure of 405 days with a competitive interest rate of 6.10 percent. This change came into effect on August 19, 2022.
406 Days to Two Years Tenure: Another addition is the tenure ranging from 406 days to two years, offering an interest rate of 5.50 percent.
Interest Rate Hike on August 17:
On August 17, the bank implemented an interest rate hike on fixed deposits by up to 20 basis points (BPS) for select tenors. This strategic adjustment reflects the bank's responsiveness to market dynamics and its commitment to optimizing returns for depositors.
Interest Rates for Specific Maturities:
Deposits maturing in more than three years and up to five years will continue to earn an interest rate of 5.75 percent.
Fixed deposits maturing in 1111 days will pay an interest rate of 5.75 percent.
Deposits maturing in more than 5 years and up to 10 years will attract an interest rate of 5.65 percent.
Senior Citizens Benefits:
Senior citizens, as per the information available on the bank's website, are entitled to an additional 50 basis points over the applicable card rates for domestic deposit maturities of less than Rs 2 crore.
Senior citizens stand to earn an attractive 6.60 percent interest rate on the newly introduced tenure of 405 days.
In conclusion, these developments at PNB signify a strategic approach to diversifying its FD portfolio, aligning with market trends, and addressing the unique financial needs of its customers. Investors, particularly senior citizens, can leverage these offerings to optimize their returns within the specified parameters. It's crucial for individuals to stay informed about such changes to make well-informed decisions in the dynamic landscape of financial markets.
Effective August 1, 2024, Punjab National Bank (PNB) has revised its fixed deposit (FD) interest rates. The highest rate is now 7.25% for a 400-day tenure, while the 300-day FD offers 7.05%. For a one-year and two-year FD, the interest rate is 6.80%.
Punjab National Bank (PNB) offers FD interest rates of 3.50-7.25% p.a. to the general public and 4.00-7.75% p.a. to senior citizens on tenures ranging from 7 days to 10 years. The interest rate on PNB Tax Saving FDs ranges from 6.35%-6.50% p.a. for the general public and 6.85%-7.00% for the senior citizens.
If you are earning a post-tax interest of 8.70% per annum on your PNB fixed deposits then the amount will double in 8.27 years approximately. To estimate the time in which the FD will double You can use the rule of 72. That is, the time taken for a fixed deposit to double is (72/post-tax FD interest rate per annum).
Shorter FD tenures typically offer lower interest rates but provide quicker access to funds, while longer tenures yield higher interest rates but limit liquidity.
What is the penalty for premature cancellation or part withdrawal of domestic term deposits in PNB? A penal interest rate of 1% will be charged at the time of premature cancellation or part withdrawal of domestic term deposits for all tenors.
Senior Citizen FD in India 2024. Senior Citizen Fixed Deposits (FDs) are term deposit plans with special interest rates offered to individuals who are over the age of 60. The rate of interest on senior citizen FDs in India ranges from 3.00% to 8.50% for tenures ranging from less than one year to more than five years.
Unity Small Finance Bank offers FD interest rates ranging from 4.50% to 9% for tenures maturing between 7 days and 10 years to general citizens. The highest interest rate of 9% is offered on FDs maturing in 1001 Days. The rates are effective from October 9, 2023.
The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. Here's where mortgage interest rates are headed for the rest of 2024 and how that will impact the housing market as a whole.
Effective August 1, 2024, Punjab National Bank's highest rate on FD is now 7.25% for a 400-day tenure. The 300-day FD offers 7.05%. For one-year and two-year FDs, the interest rate is 6.80%. The three-year FD yields 7.00%, whereas the four-year and five-year FDs provide 6.50%.
The minimum period for which you can open an FD is 7 days while the maximum period goes up to as long as 10 years. Even after the term ends, there is an option for auto-renewal except for recurring deposit scheme, bulk term deposits over ₹10 crore, inter-bank deposits, capital gain scheme, and PNB Tax Saver Scheme.
It can be either compounded quarterly, monthly, yearly and half-yearly. This time interval is instrumental in determining the maturity value on completion of the tenure of the term deposits.
A penal interest rate of 1% will be charged at the time of premature cancellation or part withdrawal of domestic term deposits for all tenors. The interest rate payable would be either the contractual rate minus 1% or the rate applicable for the tenor on the contractual date minus 1%, whichever is lower.
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