PNB NRE FD Rates

Punjab National Bank or PNB is one of the oldest and first banks managed entirely with Indian capital. With the latest amalgamation of OBC and UNI in April 2020, PNB had a presence in 10,925 branches and nearly 14,000 ATMs at the end of December 2020. In addition, it has a significant international presence with two branches, two subsidiaries, and one joint venture.  PNB boasts a global deposit of over Rs 18 Lac crores.

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PNB FD for NRIs

Fixed Deposit parks the money in accounts for a fixed tenure, with flexible tenures from one to ten years. Since the money stays invested for an extended period, the FD usually earns higher interest rates yielding better returns.  

Punjab National Bank NRE FD Rates are based on tenure. Usually, the interest rate is higher for longer tenures. Notwithstanding higher PNB NRI FD Rates, the investor must weigh the objectives before deciding on the tenure. For the simple reason, FD is not liquid and any premature withdrawal or exit may invite a levy of penalty. Therefore, it makes sense to stay invested for the entire tenure to enjoy the benefits of guaranteed capital appreciation, albeit at fixed rates. 

The PNB NRE FD Rates are applied after the first year if the deposit tenure is one year. After that, compounding kicks in for higher tenures for a cumulative benefit. In this scenario, interest is paid every 180 days, which compounds at the same frequency. The depositor enjoys the compounding effect on maturity for deposits having tenures greater than one year. 

Who Benefits from Punjab National Bank NRE Fixed Deposit Rates?

Non-Resident Indians can conveniently open FD in PNB branches depending on their chosen type of account. An Indian citizen who satisfies any two of the criteria - resided abroad for more than 182 days in a financial year, 60 days in any year, or 365 days in the previous four years is considered a Non-Resident Indian. After a stint abroad when an NRI returns to reside in the country, PNB has tailor-made FD designed for them.

Types of PNB NRI FDs

Punjab National Bank primarily offers attractive FD schemes designed to benefit their NRI clientele. Let us check them out:

  1. Non-Resident External (NRE) FD

    NRIs are eligible to open the FD account themselves and not by an Indian Power of Attorney holder in his name with income earned abroad. 

    The salient features of the FD account are:

    • Account Opening: The NRE FD account is opened through foreign remittance in a convertible currency or transfer from existing NRE/FCNR accounts in any Indian bank.
    • Where: All PNB branches in India.
    • Account Balance: The account is maintained in INR. Foreign remittance received is converted to INR at prevailing exchange rates. 
    • Account Operation: the NRI can open the account singly or jointly with another NRI with “either or survivor” operational instruction. If the joint holder is a resident relative, the instruction is “former or survivor.” 
    • Tenure: Minimum 1 year and maximum 10 years. 
    • Repatriation: Principal and accrued interest in any permitted currency. 
    • Tax Impact: The interest earned is tax-free. 
  2. Non-Resident Ordinary (NRO) FD

    The NRO FD is opened by NRIs using funds earned in India through immovable properties or investments. 

    The salient features of the scheme are:

    • Account Opening: NRI opens the NRO FD account, and an individual’s existing account is considered NRO if the status changes to NRI.
    • Where: All PNB branches in India.
    • Account Balance: The account is maintained in INR. Foreign remittance proceeds are converted to INR at prevailing exchange rates and deposited into the account. 
    • Account Operation: the NRI can open the account singly or jointly with another resident relative with the instruction “former or survivor.” 
    • Tenure: Minimum 1 year and maximum 10 years. 
    • Repatriation: The NRO account balance up to USD 1 million in a calendar year is permitted. 
    • PNB NRE FD Rates: Same as domestic term deposits. 
    • Tax Impact: The interest earned is subject to deduction as per extant Income Tax rules. 
  3. Resident Foreign Currency FD Account

    The Returning Indian is entitled to open and maintain this account using foreign exchange earned through the following:

    • Superannuation benefits from employers abroad
    • Conversion of assets acquired when residing outside India 
    • Gift or inheritance from a resident outside India
    • Income from assets acquired before 8 July 1947 

    The RFC FD account’s salient features are: 

    • Account Opening: The RFC FD account is opened by Returning Indians using funds earned abroad. 
    • Where: All the authorized PNB branches in India
    • Minimum Deposit: USD 5000
    • Account Balance: The account is maintained in designated Foreign Currency as the name suggests
    • Tenure: Minimum 1 month and a maximum of 5 years
    • Repatriation: The foreign currency balance in the account is not limited by any restrictions on its utilization or investment outside India. 
    • PNB RFC FD Rates: Same as. Applied to FCNR deposits. 
    • Tax Impact: No taxes are imposed on the account balance. 
  4. Foreign Currency Non-Resident FD Scheme

    The account is styled as PNB Global Foreign Currency Deposit Scheme to be opened only by the NRI. Its critical features of the FD scheme are:

    • Account Opening: The FCNR FD account is opened through foreign remittance in a convertible currency through the normal banking channel, repatriable in nature as per RBI guidelines.
    • Where: All authorized PNB branches in India
    • Account Balance: The FD account is maintained in five designated currencies as listed below:
      • US Dollar (USD)
      • Great Britain Pound Sterling (GBP)
      • Euro
      • Australian Dollar (AUD)
      • The Canadian Dollar (CAD) 

    If the source fund or the Traveler’s Cheque is in currency other than the above, it will be converted into one of the listed currencies as per the depositor’s choice and cost. 

    • Tenure: Minimum 1 year and a maximum of 5 years
    • Repatriation: Principal and accrued interest are freely repatriable in a currency of the depositor’s choice. 
    • Tax Impact: The earnings are free from Income, Wealth, and Gift Tax for those given to close relatives. 
    • Concessions: The PNB Global Foreign Currency Deposit Scheme that maintains a minimum balance of USD 5000 or equivalent in other currencies are eligible for the following indicative facilities:
      • Free annual remittance up to Rs 1 Lac in self account anywhere in India
      • No collection charges up to Rs 1 Lac per year
      • Free lockers if the minimum balance is USD 10,000 or equivalent
      • Automatic renewal on maturity
      • Linkage with a savings bank accounts for overdraft by marking lien in the FCNR account.

Punjab National Bank NRE Fixed Deposit Rates

The applicable interest rates are periodically reviewed and revised either upwards or downwards, depending on the factors guided by the RBI’s policies. Accordingly, the current rates are described in the following three grids:

GRID-I

PNB NRE FD Rates effective from 01/05/2021

S. No

Period 

ROI % per annum 

ROI % per annum 

Below Rs.2 Cr

Rs.2 Cr to Rs.10 Cr

1

1 year 

5.10

3.50

2

1 year < 2 years

5.10

3.50

3

2 years < 3 years

5.10

3.50

4

3 years < 5 years

5.25

3.50

5

5 years  to 10 years

5.25

3.50

GRID – II

PNB NRO FD Rates effective from 01/05/2021

S. No

Period 

Below Rs.2 Cr

Rs.2 Cr to Rs.10 Cr

ROI % pa

AY

ROI % pa

AY

1

7 to 14 days

3.00

3.00

3.00

3.00

2

15 to 29 days 

3.00

3.00

3.00

3.00

3

30 to 45 days 

3.00

3.00

3.00

3.00

4

46 to 90 days 

3.25

3.25

3.00

3.00

5

91 to 179 days 

4.00

4.00

3.00

3.00

6

180 to 270 days 

4.40

4.42

3.10

3.11

7

271 days < 1 year

4.50

4.55

3.10

3.12

8

1 year 

5.10

5.20

3.50

3.55

9

1 year < 2 years

5.10

5.20

3.50

3.55

10

2 years < 3 years

5.10

5.33

3.50

3.61

11

3 years < 5 years

5.25

5.65

3.50

6.37

12

5 years  to 10 years

5.25

5.96

3.50

3.81

ROI = Rate of Interest

PA = Per Annum

AY = Annualized Yield in percentage at the beginning of the slab rate

GRID-III:

PNB FCNR and RFC  FD Rates effective from 01/06/2021

S. No

Period 

Currency

US-D 

GB-P

EUR

JP-Y

CA-D 

AU-D

1

1 year < 2  years

0.91

0.68

0.05

0.07

1.09

0.62

2

2 years < 3 years

0.99

0.87

0.09

0.09

1.20

0.71

3

3 years < 4 years

1.20

0.99

0.16

0.10

1.48

0.90

4

4 years < 5 years

1.42

1.14

0.23

0.11

1.72

1.18

5

5 years only 

1.63

1.24

0.31

0.12

1.90

1.42

The rate of interest is expressed in percentage per annum.

The rates described above are applicable for deposits less than 1 million only.

Conclusion

It is evident from the Punjab National Bank NRE FD Rates that the bank offers a bouquet of investment options to the NRI. In addition, PNB also offers a host of attractive features to woo high investments from the NRI who wish to build a corpus and have the option to repatriate the funds when required.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

“Tax benefit is subject to changes in tax laws. Standard T&C apply.”

Written By: PolicyBazaar - Updated: 31 August 2021

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