Punjab National Bank (PNB) has launched a high-interest Fixed Deposit (FD) scheme offering 8.05% interest for 400 days. With such an attractive rate, investors are rushing to park their money, aiming for guaranteed returns of up to ₹10,92,596. But is this FD the right choice for you? Let’s break it down in simple terms.
PNB 8.05% Fixed Deposit Scheme
| Feature | Details |
|---|---|
| Bank | Punjab National Bank (PNB) |
| Scheme | Fixed Deposit (FD) |
| Interest Rate | 8.05% per annum |
| Tenure | 400 Days |
| Eligibility | General public, senior citizens, super senior citizens |
| Maturity Amount (₹10 Lakh Investment) | ₹10,92,596 (approx.) |
| Tax Implications | Interest income taxable under IT Act |
| Official Website | PNB India |
PNB’s 8.05% fixed deposit for 400 days is an excellent choice for those seeking high, risk-free returns. It outperforms traditional savings accounts and offers a lucrative option for short-term investments. However, investors should consider tax implications and premature withdrawal penalties before investing.
Why Is PNB’s 8.05% FD So Popular?
With interest rates fluctuating across financial institutions, PNB’s 8.05% FD for 400 days stands out as one of the highest rates available. Here’s why it’s a hot favorite:
Guaranteed Returns – Unlike stocks and mutual funds, fixed deposits provide secure and predictable returns.
Short-Term Commitment – At just 400 days, this FD offers flexibility, making it ideal for short-term investors.
Higher Interest for Seniors – PNB provides even better rates for senior (60+ years) and super senior citizens (80+ years).
Safe Investment – Being a government-backed public sector bank, PNB offers security and trustworthiness.
see also: How to Invest in Post Office FD Returns, Benefits, and Complete Guide
How Much Can You Earn?
Let’s break down the earnings for different investment amounts.
Maturity Amount Calculation (For General Public)
| Investment | Maturity Amount |
|---|---|
| ₹1,00,000 | ₹1,09,260 |
| ₹5,00,000 | ₹5,46,298 |
| ₹10,00,000 | ₹10,92,596 |
| ₹50,00,000 | ₹54,62,980 |
For senior citizens, the amount would be slightly higher due to extra interest benefits.
Who Should Invest?
This FD is ideal for:
- Retirees looking for safe and steady returns.
- Individuals who want better returns than a savings account.
- Parents planning for short-term financial goals like school fees.
- Business owners needing liquid yet interest-earning savings.
Who Should Avoid?
- Those needing instant liquidity (FDs have a penalty for premature withdrawal).
- Investors looking for higher returns (equity mutual funds, stocks may offer better gains in the long term).
How to Open a PNB Fixed Deposit?
Follow these easy steps:
Visit the Nearest Branch – Carry KYC documents (Aadhaar, PAN, Passport-size photo).
Use Net Banking or Mobile App – Log in to PNB’s official website or app.
Select Fixed Deposit Option – Enter the investment amount and tenure (400 days).
Confirm & Deposit Money – Review the terms and authorize payment.
Get Your FD Receipt – You’ll receive a confirmation with your maturity details.
Senior citizens should check for extra benefits before confirming.
Tax Implications on PNB FD
Is the interest earned taxable? YES!
- If your interest income exceeds ₹40,000 per year (₹50,000 for seniors), TDS (Tax Deducted at Source) at 10% is applicable.
- You can submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
- Interest is added to your annual income and taxed as per your slab.
Tip: Opt for a tax-saving FD if you want tax benefits under Section 80C.
see also: Bandhan Bank FD Rates Earn Up to 8.55% Interest
PNB 8.05% Fixed Deposit Scheme FAQs
1. What happens if I break my FD before 400 days?
PNB allows premature withdrawal, but you may get a lower interest rate and pay a penalty of 1%.
2. Is this FD better than a savings account?
Yes! A savings account offers only 3-4% interest, while this FD offers 8.05%, ensuring higher returns.
3. Can I take a loan against this FD?
Absolutely! PNB allows loans up to 90% of your FD amount at a competitive interest rate.
4. Who can invest in this FD?
Any Indian resident, including senior citizens, NRIs (in some cases), and businesses, can invest.
5. How can I calculate my FD interest easily?
Use PNB’s FD calculator available on their official website.
