Fixed Deposits (FDs) have long been a preferred investment option for risk-averse investors looking for secure and guaranteed returns. Punjab National Bank (PNB) has recently introduced a new 303-day FD scheme that promises attractive interest rates, catering to both regular and senior citizens.
This new scheme is a great opportunity for those looking to invest in short-term deposits with lucrative returns. In this article, we’ll break down everything you need to know about this scheme, from interest rates to how you can invest, and compare it with other available options to help you make an informed decision.
PNB Launches New 303 Days FD Scheme
| Feature | Details |
|---|---|
| Scheme Name | PNB 303 Days Fixed Deposit Scheme |
| Launch Date | January 1, 2025 |
| Interest Rate (General Public) | 7.00% p.a. |
| Interest Rate (Senior Citizens – 60+ years) | 7.50% p.a. |
| Interest Rate (Super Senior Citizens – 80+ years) | 7.80% p.a. |
| Minimum Deposit Amount | ₹1,000 (may vary by branch) |
| Maximum Deposit Amount | No upper limit |
PNB’s 303-day FD scheme is an excellent short-term investment option offering high returns with minimal risk. Whether you are a salaried individual, retiree, or business owner, this FD helps you earn better interest compared to a savings account while keeping your money secure. With an attractive 7.00% interest rate (7.50% for senior citizens and 7.80% for super seniors), it’s a smart choice for those looking to grow their savings safely.
Why Consider PNB’s 303-Day FD Scheme?
1. Competitive Interest Rates
One of the most attractive aspects of this scheme is the high-interest rate of 7.00% for general customers. Senior citizens get an extra 0.50% (7.50%) and super senior citizens receive up to 7.80% interest, making it an excellent option for retirees.
2. Short-Term Investment with High Returns
Unlike long-term deposits where funds remain locked for years, this FD offers a short tenure of 303 days, making it ideal for those who need liquidity in less than a year.
3. Safe and Secure
PNB is one of India’s largest and most trusted public sector banks. FD investments are insured up to ₹5 lakh under the DICGC scheme, ensuring security even in the unlikely case of bank failure.
4. Suitable for All Types of Investors
- Working professionals looking for short-term savings.
- Retirees who want stable returns.
- Parents saving for school fees or emergency funds.
- Business owners who want to park surplus cash securely.
see also: SBI FD Loan: A Smart Way to Get Instant Funds
How to Invest in PNB’s 303-Day FD Scheme?
Step 1: Check Eligibility
Anyone can invest in this scheme, including individuals, minors (through guardians), HUFs, firms, and trusts.
Step 2: Choose the Deposit Amount
You can start with as low as ₹1,000. There is no upper limit, making it suitable for small and large investors alike.
Step 3: Apply Online or Offline
- Online Method: Log in to your PNB Net Banking account, navigate to Fixed Deposits, and choose the 303-day scheme.
- Offline Method: Visit the nearest PNB branch with your KYC documents (Aadhaar, PAN, and passport-size photo).
Step 4: Receive Deposit Certificate
Once the deposit is confirmed, PNB will issue an FD receipt mentioning the amount, interest rate, and maturity date.
Comparison with Other PNB FD Schemes
Apart from the 303-day FD, PNB also offers other attractive fixed deposit schemes:
| FD Scheme | Interest Rate (General Public) | Interest Rate (Senior Citizens) | Tenure |
|---|---|---|---|
| 303 Days FD | 7.00% | 7.50% | 303 Days |
| 506 Days FD | 6.70% | 7.20% | 506 Days |
| Long-Term FD (5+ Years) | 6.50% | 7.00% | 5+ Years |
If you need a slightly longer tenure, the 506-day FD might be a good alternative.
Taxation on Fixed Deposits
- Interest earned from FDs is taxable under “Income from Other Sources.”
- If interest exceeds ₹40,000 for regular customers (₹50,000 for senior citizens) in a financial year, TDS of 10% is deducted.
- You can avoid TDS deductions by submitting Form 15G (for individuals) or Form 15H (for senior citizens).
see also: How to Save Money Smartly The Ultimate Guide to a Secure Financial Future
PNB Launches New 303 Days FD Scheme FAQs
1. Can I withdraw my PNB 303-day FD before maturity?
Yes, but a penalty may be applicable. Typically, banks charge 1% less than the agreed interest rate for premature withdrawals.
2. Is the 303-day FD scheme better than a savings account?
Yes! Regular savings accounts offer 2.75%-3.50% interest, whereas this FD gives 7.00%, which is significantly higher.
3. How will I receive interest payments?
- Cumulative Option: Interest is reinvested and paid at maturity.
- Non-Cumulative Option: You receive interest monthly, quarterly, or annually.
4. Can NRIs invest in this FD scheme?
Yes, PNB offers NRO Fixed Deposit options for NRIs, but the interest is subject to TDS as per tax laws.
5. What happens if I don’t withdraw my FD after maturity?
Your FD will be auto-renewed for the same tenure at the prevailing interest rate unless you give instructions otherwise.
