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PNB Tax Saving Fixed Deposit

Home Fixed Deposit PNB Tax Saving Fixed Deposit

Punjab National Bank offers Tax Saver Fixed Deposit Scheme at an interest rate of 7.00% p.a. for senior citizens and 6.50% p.a. to other depositors for tenure 5 years to 10 years. Deposits under PNB tax saver FD are eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, in a financial year.

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  • FD Starts from Rs 2000

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*Rates are subject to change as per the bank's discretion.

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Updated: 15-02-2024 09:52:20 AM

PNB Tax Saving Fixed Deposit Highlights

Deposit Amount Rs 100 to Rs 1.5 lakh in a financial year
Tenure 5 years
Interest Payable Options Monthly, Quarterly, Half yearly, Yearly, At Maturity (Re-investment)
Premature Withdrawal Not allowed
Loan Against FD Facility Not available
Auto-Renewal Facility Not available
Nomination Facility Available

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PNB Tax Saving FD

  • Interest Rates for Senior Citizens – 7.00% p.a.
  • Interest Rates for Others – 6.50% p.a.
  • Applicable Tenure – 5 to 10 years

Comparison of Top 20 Scheduled Banks based on FD Rates


Banks		Highest
FD rate
(% p.a.)		1-year
FD rate
(% p.a.)		3-year
FD rate
(% p.a.)		5-year
FD rate
(% p.a.)		Additional
interest rate
for senior citizens
(% p.a.)
Unity Small Finance Bank9.007.858.158.150.50
North East Small Finance Bank9.007.009.006.250.50
Suryoday Small Finance Bank8.656.858.608.250.24-0.50
Shivalik Small Finance Bank8.556.007.506.500.50
Utkarsh Small Finance Bank8.508.008.507.750.60
Jana Small Finance Bank8.258.258.257.250.50
Ujjivan Small Finance Bank8.258.257.207.200.50
ESAF Small Finance Bank8.256.006.756.250.50
Equitas Small Finance Bank8.258.208.007.250.50
SBM Bank8.257.057.307.750.50
RBL Bank8.107.507.507.100.50
DCB Bank8.057.107.557.400.50
Bandhan Bank8.058.057.255.850.50-0.75
AU Small Finance Bank8.007.257.507.250.50
YES Bank8.007.257.257.250.50-0.75
Induslnd Bank7.757.757.257.250.50
IDFC First Bank7.756.507.006.750.50
Central Bank of India7.457.006.005.750.50
HDFC Bank7.406.607.007.000.50
Union Bank of India7.406.806.706.500.50

 

Features of Punjab National Bank Tax Saving FD

  • Deposit amount – Minimum: Rs. 100; Maximum – Rs. 1.5 lakhs in a financial year
  • Depositors can open PNB tax-saver FD with income and maturity options. The income option includes the following:
    • Quarterly interest pay-out wherein the interest is paid on a simple rate of interest
    • Monthly interest pay-out wherein the interest is paid monthly at discounted value
    • Half-yearly interest pay-out wherein the interest is quarterly compounded and credited half yearly
    • Yearly interest pay-out wherein the interest is quarterly compounded and credited yearly

Under the maturity option (re-invested interest), the FD interest is compounded quarterly and paid on maturity. Thus, the interest component is reinvested into the principal amount and thereby, helps in deriving the power of compounding.

  • Additional 0.50% p.a. interest rate is offered to senior citizen FD depositors, over and above the regular FD interest rates.
  • In the case of joint deposits, the tax benefits can only be availed by the first account holder of the fixed deposit account
  • As with any other tax saver FD schemes, PNB Tax Saver FD comes with a lock-in period of 5 years, i.e., premature withdrawal or partial withdrawal of fixed deposits are not allowed, unlike regular FDs

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How to Open PNB Tax Saving FD

Individuals can open tax saver FD either through internet banking, mobile banking or by visiting PNB Bank branch.

PNB Bank Tax Saving FD Calculator

You can use the fixed deposit interest calculator to know the FD maturity amount and interest income. You just need to enter the principal amount, tenure and applicable PNB FD interest rates.

Tax Deduction on PNB Tax Saver FDs

The principal amount of the PNB tax saver fixed deposit qualifies for an income tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. However, the interest income on FD is taxable in the IT return under the head “Income from other sources”.

Senior citizens can claim income tax deductions of up to Rs 50,000 on the interest income of deposits (including fixed deposits) under Section 80TTB of the Income Tax Act. Here, the term ‘deposits’ refers to the deposit accounts opened with post offices, cooperative societies engaged in the business of banking, and banks.

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TDS on PNB Tax Saver Fixed Deposits

TDS @ 10% is deducted on the FD interest in a financial year if interest income exceeds Rs. 40,000 (Rs. 50,000 in the case of senior citizens). However, if PAN details are not provided, TDS @ 20% is deducted on the fixed deposit interest.

PNB Tax Saving FD Eligibility Criteria

  • Resident Individuals, or
  • Hindu Undivided Family

Documents Required For Opening Tax Saving FD

Here are the following documents required for opening tax saving fixed deposit account:

  • Photocopy
  • PAN
  • Aadhaar Card
  • Proof of age (for senior citizens)

 

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