PNB RD Interest Rates

Punjab National Bank (PNB) is the first Swadeshi Bank of India. It is an Indian Public sector bank, incorporated in 1894 with its headquarters in Delhi, India. Today, the bank has over 70,000 employees across all Indian states and has become the second largest government-owned bank. PNB offers various RDs to encourage a regular saving habit for low-income groups by investing in small deposits every month. It also offers various banking products and services customized for the account holder's requirements, completely adhering to RBI guidelines.

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​​​​​​​​PNB RD Interest Rate 2022 Table

Below is the RD Interest rate table for the Punjab National Bank (as of April 2022):

Tenure of deposit Interest Rate for Regular Customers (% PA.) Interest Rate for Senior Citizens (% PA.)
7 to 45 days 3.0% 3.5%
46 to 90 days  3.25% 3.75%
91 to 179 days 4.0% 4.5%
180 to 270 days 4.4% 4.9%
270 days to less than 1 year(364 days) 4.5% 5.0%
1 year 5.0% 5.6%
from1 year to 3 years 5.0% 5.6%
from 3 years to 5 years 5.25% 5.75%
from 5 years to 10 years 5.25% 5.75%

Disclaimer: RD Interest rates are subject to change with time. PolicyBazaar does not endorse, rate, or recommend any particular company or product. The policyholder bears the investment risk in the investment portfolio. 

Features of PNB Recurring Deposits

  • The minimum monthly installment for the RD account is just Rs.100.

  • RD tenure can range from six months to 120 months.

  • PNB's RD account is available for overdraft and loan facility.

  • The nomination facility also provides the RD account of the PNB.

  • RD interest earned is also applicable for the TDS as per the rules.

Calculation of Maturity

You can easily calculate the interest on your RD with the help of Punjab National Bank's RD calculators. The calculator is available on the PNB website. For the calculations, you need to add the details of your RD, the Tenure, amount, and rate of interest. 

This process is simple and easy, but you can also use the following formula to calculate the PNB RD interest.

A= P*(1+R/N)^(Nt) 

A is maturity amount 

P is principal deposited 

N is the number of times interest has been compounded (in months)

R is the rate of interest 

t is applicable tenure (in months)

Types of PNB RD Account

There are three types of recurring deposits available in Punjab National Bank– 

  1. PNB Recurring Deposit Scheme

    This is the regular RD scheme of PNB, starting with a minimum deposit amount of Rs.100/- or any multiples of Rs.100/- thereof. The tenure for the RD is a minimum of six months to a maximum of 120 months. Only 80% of this account's deposit value is applicable for loans and overdraft facilities.

  2. PNB Special Recurring Deposit Scheme

    PNB Special Recurring Deposit scheme applies to government and private institutions, corporate bodies or companies, PSUs, etc. In this scheme, companies can open accounts with either 75% of eligible employees or 10 employees, whatever is lower. These RDs are not opened by individual names but by the name of the employee's institution.

    The RD Minimum deposit amount should be Rs.10/- according to the employee's PF deductions, and the incremental installment should be in multiples of Rs.1/- thereof. For this scheme, there is no penalty applicable on the default installments. And as per the norms, TDS is applicable as usual. The premature withdrawal facility is not allowed on the Special Recurring Deposit.

  3. PNB Recurring Deposit Scheme (e-RD)

    Punjab National Bank recurring deposit scheme (e-RD) is for the Existing PNB saving or current account holders. The account holders who avail of internet banking can begin the e-RD. The tenure of the deposit of the e-RD installment depends on the scheme type. Nomination for the scheme is not required particularly, but it remains the same as the primary account nominee details.

    The maturity amount directly gets credited to the fund account on the RD's maturity. For closure or premature closure, the account holder has to visit the branch to complete all the formalities. In the issuance of the e-RD, acceptance of Terms & Conditions is mandatory.

​Eligibility to Open a PNB RD Account

  • Any individual, jointly or singly, can open an RD with PNB.

  • Any minor who has attained the age of 10 years and above can open a Punjab National Bank's RD account in their name. They have to provide age and identification proof.

  • Minors below the age of 10 can begin RD under the guardianship of their parent or legal guardians.

  • The following can open an RD account in PNB

    • Proprietorship or Partnership Firm, Company or Corporate organization

    • Hindu Undivided Family

    • Associations, Clubs, Societies, Trust or Religious institutes, or Charitable Educational Institutions

    • Quasi-Government or Government bodies, Municipal corporations, or Panchayat.

How to Open an RD at PNB?

1. For existing PNB account holders: there are two ways to open the RD account:

  • Offline: You can easily open an RD account by visiting a local PNB branch with the required documents. A representative from the bank will guide you through the process and help you to open an RD account.

  • Online: Through Net banking.

If you want to open an RD account but don't want to visit the local branch, then you can open one online through net banking.

Follow the steps listed below to open a PNB RD account online:

  • First, visit the official Punjab National Bank website.

  • Then, click on login, net banking, and fill in your credentials.

  • Now, open the menu and click on "Open Recurring Account."

  • A form will pop up, and you can carefully fill in all the details like the period of the RD, the monthly installment amount, etc.

  • After all, is done, click on continue. By following these steps, you can easily open an RD account.

2. For non-existing users: If you are not a PNB account holder and want an RD account in the bank, you will have to apply for the bank account first in the nearby bank branch. Once you become a PNB account holder, you can open an RD either by net banking or by applying to a branch. 

Documents Required to Open RD Account

  • Bank Application form

  • Photographs

  • ID Proof, such as;

    • Aadhar card

    • Voter ID

    • Driving license

    • Ration card

    • Passport

    • PAN card

    • Government ID card or

    • Senior citizen card

  • Address proof, such as;

    • Passport

    • Aadhar card

    • Electricity bill

    • Phone bill

    • Bank statements

​​​​Tax Benefits of Having a PNB RD Account

The RD in PNB is not eligible for tax exemptions. The interest earned from RD is taxable according to the tax bracket you fall in, irrespective of the interest rate or other factors. Moreover, in any financial year, if the interest earned on the fixed deposit or recurring deposits is more than Rs.40,000, the bank will deduct TDS at 10%. The TDS deducted can be claimed further while you file your return.

Premature Withdrawal of RD

According to the guidelines, PNB levies a 1% penalty on withdrawing RD before maturity. The exact penalty amount applies when any installment is missed or delayed.

FAQ's

  • How is the interest applicable for the PNB Special RD scheme? 

    The interest applicable on Special RD is the same as the regular card rates. The interest is credited to the account every six months, i.e., March and September. For special RD schemes, there is no separate interest chart.
  • Can an RD account be closed online?

    Yes, the RD account open by net banking can be closed online by logging in to your net banking account. However, if you have not opened the RD online, it cannot be closed online.
  • Can I get the interest every month?

    Currently, PNB does not provide a monthly interest payout. The interest is credited to the account once the RD matures.
  • Is it necessary to mention the names of all the employees under the PNB Special RD scheme?

    No, the institutes don't need to mention the names of all employees. The companies can open accounts with either 75% of eligible employees or ten employees, whatever is lower.
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