PNB Housing Finance FD rates are one of the competitive interest rates customers can get on investing in a fixed deposit. The company provides a diverse range of FD schemes that help one in creating a robust corpus. Let’s discuss features and other details of fixed deposit schemes by PNB Housing Finance Limited.
PNB Housing Finance FD Rates 2020
1. Cumulative Option
|Tenure (Months)||Rate of Interest (p.a.)|
|12 – 23||6.20%|
|24 – 35||6.45%|
|36 – 47||6.60%|
|48 – 59||6.60%|
|60 – 71||6.70%|
|72 – 84||6.70%|
Note: The aforementioned FD rates are applicable for deposits up to Rs. 5 crores. PNB Housing offers 0.25% higher interest rate for senior citizens. (Interest rates effective from 10 September 2020)
2. Non-Cumulative Option
|Interest Rates (in. % p.a.)|
|12 – 23||6.03%||6.06%||6.11%||6.20%|
|24 – 35||6.27%||6.30%||6.35%||6.45%|
|36 – 47||6.41%||6.44%||6.49%||6.60%|
|48 – 59||6.41%||6.44%||6.49%||6.60%|
|60 – 71||6.50%||6.54%||6.59%||6.70%|
|72 – 84||6.50%||6.54%||6.59%||6.70%|
Note: The aforementioned FD rates (annual) are applicable for deposits up to Rs. 5 crore. (Interest rates effective from 10 September 2020)
Types of FD Schemes by PNB Housing Finance Limited
The basic classification of the FDs by PNB Housing Finance is done on the basis of the frequency of interest payment. There are two types, viz.
- Cumulative: Interest is credited to the FD account on a yearly basis whereas the same is paid cumulatively or collectively at the end of the tenure, i.e. at maturity.
- Non-Cumulative: In this type, interest is paid at a frequency chosen by the applicant, i.e. monthly, quarterly, half-yearly or yearly. Such schemes can be treated as regular income schemes.
There are 3 options where one can invest their money in, viz.:
1. Joint Fixed Deposit:
- Can be opened with up to 3 members
- In the case of cumulative deposits, interest is paid to the first applicant
- In case of a non-cumulative deposit, accrued interest is credited in the name of the first applicant and will be paid as per the demarcations provided by the ‘first applicant’
2. NRI Fixed Deposit:
- Non-Resident Indian (NRI) fixed deposit is designed specifically to custom-fit the needs of those living outside the country
- FD is locked-in for a minimum period of 3 years
- Deposits are accepted on a non-repatriation basis (non-transferrable to resident country and non-convertible into foreign currency)
3. Corporate Deposits:
- Can be applied by corporate bodies, public or private companies, local authorities, corporations, Statutory Board and Banks & Financial Institutions
- Deposits accepted for a minimum of Rs. 10 lakh
- Deposits can be made in the form of cheque payment
Features of PNB Housing Finance Fixed Deposits
A safe investment option with competitive PNB Housing Finance FD rates, the housing finance corporation. Dealing with loans and deposits solely, the housing finance corporation provides fixed deposits as a safe investment option for risk-averse investors. The PNB FD rates are comparatively higher than what one may get from banks.
|Tenure||1 year – 10 years|
|Min. Deposit Amount|
|Rate of Interest||Compounded quarterly; paid monthly, quarterly, semi-annually or annually|
|Rates for Senior Citizens||Additional 0.25% interest on deposits of up to Rs. 1 crore|
|Premature Withdrawal||Available (after 3 months of lock-in period)|
|Loan against FD||Available; for up to 75% of the balance|
PNB Housing Premature Withdrawal Facility
Premature withdrawal or cancellation is an act where the depositor, due to some reasons, wants to withdraw the fixed deposit by taking out the money deposited before maturity. Instead of taking a loan to convalesce a financial setback, account holders can simply exercise this option.
There is a lock-in period of 3 months starting from the date of commencement of the FD scheme.
Applicable interest rates on prematurely withdrawing:
|Time of cancellation||Interest Payable|
|Post 3 months but before 6 months|
|Post 6 months but before maturity||1% less than the applicable ROI for public deposits|
Note: If no rate of interest is mentioned for the time for which FD was active, the company shall pay a 2% lower interest at which deposits are accepted.
PNB Housing Loan against FD
In situations where one needs to borrow money, instead of going to the bank customers can easily opt for the facility of availing loan against FD.
- This facility is available for cumulative and non-cumulative options both
- Amount of up to 75% of the deposit can be applied for
- The loan can be approved from all the branches of the company
- In case the loanee is not able to repay the amount, the company shall use the FD amount to recover the same
PNB Housing FD Calculator
To ascertain the returns that one may get from investing in a PNB Housing Finance fixed deposit scheme, it is highly advised to go for the PNB FD calculator – a tool available for free at Paisabazaar.com. This tool can be used to calculate the maturity amount for any tenure and deposit amount and can be used multiple times.
Customers need to enter the deposit amount, current PNB Housing Finance FD rates for the respective tenure along with the tenure for which the deposit is to be kept. On submission of the said details, the calculated maturity amount shall be displayed on the page which can be compared with FDs from banks/companies so as to make a well-informed decision.
Documents Required to Apply
In order to open a fixed deposit account with Punjab National Housing Finance Ltd. it is recommended to keep the following mentioned documents ready so as to have a smooth application process:
How to Apply for PNB Housing Finance FD?
Customers interested in opening an FD with PNB Housing Finance are required to collect the KYC documents along with cheque or demand draft and submit the same to the nearest PNB Housing Finance branch or at the authorized HDFC Bank’s collection centres.
Some of the noteworthy mentions about PNB Housing Finance fixed deposits are:
- If the interest earned on the deposits is up to Rs.5000 per customer, there will be no Tax Deducted at Source (TDS) on the interest earned and it will be exempt from tax
- 2 variants of deposits; Regular and Special Deposits both with different tenure are available
- For deposits of up to Rs. 1 crore, there are preferential PNB Housing Finance FD interest rates at an additional rate of 0.25%
- For monthly income schemes, a minimum deposit of Rs. 25,000; Rs. 10,000 for all the other schemes is to be made
- Interest payment for non-cumulative deposits:
|Frequency of Interest Payment||Date of Interest Payment|
|Monthly||Last day of the month|
|Quarterly||June 30th, September 30th, December 31st, March 31st|
|Semi-Annually||December 31st and March 31st|
Frequently Asked Questions
Q. Is it safe to invest in PNB Housing Finance FD?
A. If credit ratings are checked properly and thorough knowledge is gained on the company one is investing, investors can have safer experience of putting money in company fixed deposits.
Q. Are PNB Housing Finance FD rates different from PNB FD rates?
A. Yes. FD rates for PNB Housing Finance are usually higher as compared to those offered by Punjab National Bank.
Q. What is the difference between PNB Housing Finance fixed deposits and PNB housing fixed deposits?
A. Fixed deposits by PNB Housing Finance are provided by a company dealing in loans and deposits solely whereas the other one, i.e. FD by Punjab National Bank is forwarded by a nationalized public bank. While the former provides FD of a single type, the latter offers varied fixed deposit options to invest.
Q. What are the highest PNB Housing FD rates available?
A. Currently, the highest interest rate one can fetch on investing in an FD with PNB Housing Finance is 7.00%.
Q. Do senior citizens get any extra benefits on investing in fixed deposits with PNB Housing?
A. Yes, the finance company provides preferential interest rates at 0.25% over the regular rates on deposits up to Rs. 1 crore.