Since the beginning of 2020, more and more people are carefully drafting budgets, by cutting miscellaneous expenses to put some of the income earned into savings. The prevalent financial crisis is adversely impacting everyone, making it difficult for middle-class Indians, especially senior citizens, to be financially secure during contingencies.
Senior citizens depend on their hard-earned savings post-retirement. Without a regular income, their finances look more volatile. Investment instruments like fixed deposits are tools that offer financial freedom.
Fixed Deposits – FD
PNB housing fixed deposit is an investment instrument that ensures the safety of your funds and also guarantees the highest FD interest rate. A fixed deposit account is a safe and convenient investment option compared to other saving accounts. Also, there are additional benefits for senior citizens.
You can deposit a certain amount in a fixed deposit account for a fixed period. At the end of the set tenure, you earn guaranteed interest rates.
Type of Fixed Deposits
Fixed deposits are classified under two categories such as:
- Cumulative Fixed Deposit:
The interest earned is deposited to the FD account every year. The interest rate with the principal amount is paid at the end of the tenure such as maturity.
|Tenure||Rate of Interest|
|12 – 23 months||5.90% p.a|
|24 – 35 months||6.15% p.a|
|36 – 47 months||6.60% p.a|
|48 – 59 months||6.60% p.a|
|60 – 71 months||6.70% p.a|
|72 – 84 months||6.70% p.a|
|120 months||6.70% p.a|
2. Non-cumulative Fixed Deposit
The interest earned is paid out to the investor/depositor at a chosen frequency such as monthly, quarterly, half-yearly, or annually. The interest payments are usually used to meet daily financial needs.
|12 – 23||5.74%||5.77%||5.81%||5.90%|
|24 – 35||5.98%||6.01%||6.05%||6.15%|
|36 – 47||6.40%||6.44%||6.49%||6.60%|
|48 – 59||6.40%||6.44%||6.49%||6.60%|
|60 – 71||6.50%||6.53%||6.59%||6.70%|
|72 – 84||6.50%||6.53%||6.59%||6.70%|
Benefits of choosing PNB Housing fixed deposit account
- Safety assurance
Safety is a concern to every depositor to ensure their money is safe and getting a good return on investment. The Indian analytical company known as CRISIL has given FAA+/Negative rating to PNB housing’s fixed deposits. Also, it has earned an AA/stable rating by CARE.
- High-Interest rate
Another benefit of opening a fixed deposit account is the availability of the highest FD interest rate. Senior citizens can avail of an additional 0.25% interest on deposits of up to Rs. 1 crore.
- Easy maturity process
Upon the maturity of fixed deposits, customers can easily process the withdrawal of the principal amount along with the interest. There is also an easy renewal process available to customers.
- Premature withdrawal
There is a flexible premature withdrawal facility available in case of an immediate need for funds. Customers have the option to withdraw from the fixed deposit account after three months of the lock-in period.
Further, customers can receive 4% interest per annum if the premature withdrawal is made within six months from the date of deposit or 1% interest if the premature withdrawal is made after six months.
- Loan availability
The best part about PNB Housing’s fixed deposit is that customers can avail of up to 75% of the principal amount as a loan. It is available on both cumulative and non-cumulative fixed deposits.
Fixed deposit is among the safest investment options that offer the highest FD interest rates. It also provides an additional 0.25% interest to senior citizens.