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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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
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
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
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.
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.
The following categories of individual and non-individual entities can invest in this FD.
Public/Private Ltd. Companies
1. For Individuals
Here are the documents required for individuals investing in a PNB Housing Finance FD.
Identity Proof (Self-attested)
NREGA Job Card
Address Proof (Self-attested)
Property or Municipal Tax Receipt
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.
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.
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
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 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.
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.
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.
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.
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.
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
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:
Interest Rate (per annum)
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!
Disclaimer : The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.
Yes, you may make a premature withdrawal of a PNB Housing Finance FD.
Yes, you can extend the tenor of your FD with PNB Housing Finance through the NBFC’s facility for auto-renewal.
Yes, you may get a loan against your PNB Housing Finance Fixed Deposit. You can borrow up to 75% of your FD deposit amount.
When you book a PNB Housing Finance FD online, you only need to fill out an application form. You will also need to submit other KYC documents
and a cheque/draft at a PNB Housing Finance branch.
Yes, tax is deducted on PNB Finance FD returns. If you earn ₹40,000 (₹50,000 for senior citizens) and above as FD interest, you are liable to pay tax starting at 10% (PAN holders) or 20% (absence of PAN).
However, tax liability is the least of your worries if your FD returns are less than ₹5,000 p.a. In this case, no TDS is deducted.
Yes, the PNB Housing FD provides you with a nomination facility. In case of the demise of the FD holder, the company will automatically transfer the ownership of the FD savings and its returns to a nominee. Simply make sure you assign a nominee when booking your FD.
The minimum investment tenor for PNB Housing Finance FD is 1 year, i.e., 12 months.
Yes, PNB Housing Finance offers you high interest rates, which assures you of steady returns and wealth generation despite market fluctuations. Additionally, the FD has been rated AA/Stable by CRISIL and CARE, making it a trustworthy investment tool.
The FD interest rates for senior citizens are 0.25% higher than the regular interest rates.
While others need to pay 10% and above in taxes on ₹40,000 and more earned as FD returns, senior citizens aren’t required to do so. Taxes are only levied when seniors receive interest returns over ₹50,000 p.a.
Indian-resident individuals, non-resident Indians, associations, firms, co-operative banks, joint investors, trusts, clubs, co-operative societies and public/private limited companies can book a PNB Housing Finance Fixed Deposit.