PNB Housing Finance Fixed Deposit

Fixed deposits are vital to your saving strategy, as they offer security for your investment amount and steady returns that multiply your corpus. This also enables you to create a contingency fund, which is crucial during emergencies. 

Among the many FD issuers in the market, you can bank on PNB Housing Finance, a leading NBFC, to invest in a fixed deposit. This institution offers attractive interest rates and flexible tenors to maximise your savings and returns. 

Read on to learn more about the PNB Housing Finance FD, its features, benefits, application process, and more.

Features of the PNB Housing Finance FD

There are a number of features that make the PNB Housing Finance Fixed Deposit a great option to grow your wealth. Here’s a look at some of the top features that you can enjoy while securing your financial future. 

• High Safety and Credit Ratings

CRISIL and CARE provide NBFCs with ratings which signify the NBFC’s credit quality and safety. The PNB Housing Finance FD comes with a high AA/Stable rating from CRISIL and CARE, making it a secure and stable investment instrument. 

• Attractive Interest Rates

With PNB Housing Finance fixed deposit rates going up to 7.70% per annum, you can earn substantial returns on your investment. Furthermore, PNB Housing Finance FD rates for senior citizens are 0.25% higher than regular interest rates. 

• Longer Tenor

The PNB Housing Finance Fixed Deposit offers you tenors ranging from 12 months to 120 months. This offers you the opportunity to choose the right investment duration depending on your financial goals. 

Moreover, a longer tenor allows you higher wealth generation for your long-term aspirations. 

• Easy Renewal

Once your PNB Housing FD is close to maturity, you can choose between automatic renewal and withdrawal. You can give PNB Housing Finance a standing instruction of automatically renewing your FD. 

Just make sure to submit the deposit certificate with other documents and fill out the renewal form. 

• Convenient Earnings Calculation

The PNB Housing Finance FD calculator is a digital tool that gives you an estimate of your returns based on the investment terms. You can try different variations to know which terms suit your needs best.

Why Invest in a PNB Housing Finance Fixed Deposit

Saving in a fixed deposit with PNB Housing Finance has many advantages that can help you secure your funds for a brighter financial future. Following are the top benefits of booking this fixed deposit. 

• Start Small

The minimum deposit amount for a PNB Housing Finance FD is just ₹10,000. This is great if you want to start small. It also suits if you are a young salaried professional just starting out on your saving and investing journey. 

• Assign Nominee

You can easily assign a nominee when you book your PNB Housing Finance Fixed Deposit. This way, the nominee will get automatic ownership of the FD account should the PNB FD account holder pass away before the FD matures.

• Withdraw Before Maturity

PNB Housing Finance allows you to withdraw your funds from a PNB Housing FD before the maturity date. This helps you get liquidity when you need it. Additionally, in the event of the account holder's demise, the nominee is given a choice to continue the FD or withdraw it.

• Acquire Loan Against FD

Instead of prematurely withdrawing your FD, you can avail a loan against the investment when you need emergency financing. This facility helps you get up to 75% of your FD amount from PNB Housing Finance. 

This means that if your investment is ₹1 lakh, you can get ₹75,000 as a loan to address your needs. 

Types of PNB Housing Finance FD Schemes

The PNB Housing Finance Fixed Deposit, like those of most other issuers, can be categorised into two types, cumulative and non-cumulative. Here is a brief overview of both:

1. Cumulative Fixed Deposit

• Interest earnings are calculated annually and paid out at the time of maturity

• With annual compounding throughout the tenor and no payout at intervals, you can earn better returns

• Cumulative FDs generally offer a higher interest rate than non-cumulative FDs

• Minimum deposit amount of ₹10,000

2. Non-cumulative Fixed Deposit

• Interest rate earnings are calculated based on the interest payout selected at the time of investment

• Choose from monthly, half-yearly, quarterly, and yearly interest payout

• With interest paid periodically, your effective returns may be lower than that of a cumulative FD

• Minimum deposit amount of ₹25,000

Apart from these, the PNB Housing Finance Fixed Deposit is further categorised into the following:

1. Joint FD

• Maximum of 3 account holders

• Interest is paid to the primary, i.e., the first account holder

• Repayment on maturity is carried out as per instructions in the application form

 2. Corporate FD

• No maximum investment limit and a minimum deposit of ₹10,000

• The deposit can be made with an account payee cheque or RTGS

3. NRI FD

• The maximum investment tenor is of 3 years

• Repayment through credit in the depositor’s NRO account

• Interest earned or maturity amount cannot be converted to a foreign currency or currency of the residential area

• TDS will be deducted as per stipulated terms and conditions

Taxation on the PNB Fixed Deposit

All earning individuals are liable to contribute a certain portion of their income to taxes. According to the Income Tax Act of 1961, returns earned from FDs are considered alternate incomes and hence, returns from PNB Housing Finance FDs are taxable. 

If your PNB Housing Finance fixed deposit earns ₹40,000 and above, the issuer is liable to deduct tax at source. However, the limit for senior citizens stretches up to ₹50,000, beyond which the earnings are liable for TDS. 

Eligibility Criteria & Documents Required

To book a fixed deposit with PNB Housing Finance, you need to meet simple eligibility criteria and submit the documents needed. Here is all you need to know.  

Eligibility Criteria to Book a Fixed Deposit Account with PNB Housing Finance 

The following categories of individual and non-individual entities can invest in this FD. 

• Indian-resident Individuals

• Non-resident Indians

• Associations

• Firms

• Co-operative Banks

• Joint Investors

• Trusts

• Clubs

• Co-operative Societies

• Public/Private Ltd. Companies

Documents Required to Book a Fixed Deposit Account with PNB Housing Finance 

1. For Individuals

Here are the documents required for individuals investing in a PNB Housing Finance FD.

• Passport-sized Photograph

• Identity Proof (Self-attested)

1. Passport

2. PAN Card

3. Driving Licence

4. Voter ID

5. Aadhaar Card

6. NREGA Job Card

• Address Proof (Self-attested)

1. Driver’s Licence

2. Aadhaar Card

3. Passport

4. Property or Municipal Tax Receipt

5. Utility Bills

2. For Hindu Undivided Family (HUF)

 Given below are the documents needed for an HUF to book a PNB Housing FD.

• PAN Card (Self-attested)

• HUF Declaration Deed

• Bank Statement of HUF

3. For Partnership Firms

 A partnership firm is required to submit the following documents for a PNB Housing FD. 

• Registration Certificate

• Partnership Deed

• Authorised Signatory List

• ID and Address Proof Authorised Signatories

4. For Joint Stock Companies

Joint Stock Companies need to submit the following documents to book a PNB Housing Finance FD. 

• Incorporation Certificate 

• Memorandum and Articles of Association

• PAN of the Company

• Resolution from Board of Directors and Power of Attorney

• Authorised Signatory’s ID Proof and Address Proof 

How to Book a PNB Housing Finance FD

The PNB Housing Finance FD offers guaranteed and attractive returns. The process of booking an FD is seamless. Here is how you can complete it with no hassles. 

• Compare Current Rates

Compare the current interest rates on the basis of the category and type of FD. Do consider the tenor as well. This analysis can help you maximise your returns through the PNB Housing Finance FD.

• Choose Tenor

You can choose the duration of your PNB Housing Finance FD, which decides the maturity date of your FD. Keep in mind that the tenor heavily impacts the returns you earn. 

• Pick Payout Schedule

Choose between a cumulative or non-cumulative payout frequency. Decide whether you prefer to receive the entire maturity amount in a lump sum at the end of the tenor or not. If not, you can receive a payout on a monthly, quarterly, half-yearly or yearly basis. 

• Select Deposit Mode

Book your PNB Housing Finance FD online or by visiting a physical branch in person. Accordingly, you can make your deposit payment via net banking, cheque, and other modes. 

Premature Withdrawal of a PNB Housing Finance FD

Fixed deposits come with a premature withdrawal facility. This helps you access your funds before the tenor ends. However, you can prematurely withdraw your FD only as per the terms and conditions of the issuer. 

Premature withdrawal also attracts a penalty depending on when and how you proceed. 

Given below are the terms and conditions applicable to this when you withdrawal your PNB Housing Finance FD:

• You can withdraw the FD prematurely only 3 months after the investment begins

• If you withdraw the FD prematurely within 6 months, your earnings will be calculated at an interest rate of 4%

• If you withdraw the FD prematurely after 6 months, your returns will be computed at an interest rate that is 1% lower than the prevailing rates

Interest Rate of PNB Housing Finance Vs Top Banks

While PNB Housing Finance FD comes with an interest rate of 7.95% per annum, here are the rates for some of the other top banks and NBFCs:

Before investing in any FD, comparing the interest rates and returns can help you ensure that you choose the best investment option. Simply use the PNB Housing FD calculator to forecast your earnings and assess these returns against other FDs. 

At Bajaj Markets, you can easily compare and choose from the top fixed deposits available in the market. With an end-to-end digital process, you can start growing your wealth in just a few clicks! 

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