Are you looking for an investment opportunity that is totally safe and gives high returns? PNB’s 3-Year Fixed Deposit (FD) plan comes with an attractive rate of interest of 7% with being a good option to general investors as well as senior citizens.
In the current scenario of economic uncertainty, keeping your hard-earned money with a trusted government bank, PNB, gives you stability, guaranteed returns, and relaxation of mind. Let us delve into what makes this FD scheme a one-in-a-million and what benefits the investor can derive from it.
3-Year FD Interest Rates With PNB (Update 2025)
Hard-to-ignore interest rates are set by PNB’s 1096-day fixed deposit scheme as follows:
- General Investors: 6.50% p.a.
- Senior Citizens: 7.00% p.a. (Additional 0.50% benefit)
Note: The above rates will be applicable from January 1, 2025, and are subject to change under the guidelines provided by the RBI. For the latest updates, it is advised to visit the official website of PNB or visit the nearest branch.
Why Should You Consider a 3-Year FD from PNB?
- Assured Returns Without Risk
As opposed to investments that are associated with the market, for example, stocks and mutual funds, the fixed deposit generates a stable interest rate, and the earnings are not subject to fluctuations as are earnings without such an investment. - Government-Backed Safety
As a foremost public sector bank, PNB guarantees the safe custody of your capital and interest. In the same vein, deposits to the tune of ₹5 lakh get insured by DICGC, which guarantees further security. - Attractive Returns for Senior Citizens
All senior citizens enjoy 0.50% higher interest, which makes this scheme a nice source of retirement income. - Flexible Investment Options
Minimum Investment: Just ₹1,000
- Loan/Overdraft Facility: Available against your FD at reduced interest rates for borrowing purposes.
- Partial Withdrawal: Some flexibility in pressing emergencies (terms apply).
How to Open a PNB FD – Online & Offline
Online Method (Quick & Hassle-Free)
- Log into PNB NetBanking/Mobile Banking.
- Navigate to the ‘Fixed Deposit’ section.
- Select 3-year tenure (1096 days), enter the deposit amount.
- OTP confirmation, and your FD is active instantly!
Offline Method (Branch Visit):
- Go to the nearest PNB branch. Fill the FD application form and KYC documents.
- Deposit the amount and get your FD receipt.
Tax Implications on PNB FD
- Interest earned is taxable according to your income slab.
- TDS (10%) applies if interest exceeds ₹40,000/year (₹50,000 for seniors).
- No Section 80C benefit on 3-year FDs (only for 5-year tax-saving FDs).
Frequently Asked Questions
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Can I withdraw my PNB FD before maturity?
Yes, but it may incur a penalty for early withdrawal and reduced interest rates.
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Is interest on FD taxable?
Yes, it is added to your annual income and taxed accordingly.
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Can NRIs invest in this FD scheme?
Yes, through NRE/NRO accounts, but different rates may apply.
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Is it safe to take a loan against FD?
Absolutely! Since the FD itself acts as collateral, interest rates are lower than personal loans.
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Does PNB offer auto-renewal for FDs?
Yes, you can opt for auto-renewal at maturity to continue earning interest.