PNB Tax Saver Fixed Deposit Scheme helps you to avail tax deductions under Section 80C of the Income Tax Act, 1961. So, you can save taxes as well as earn returns on the investment. You can deposit up to Rs. 1.50 lakhs in this fixed deposit (FD). The lock-in period is for 5 years. You cannot make premature withdrawals. If you break the Punjab National Bank (PNB) FD before maturity, a penalty will apply. A nomination facility is available.
In this post, we will discuss Punjab National Bank Tax Saver Fixed Deposit eligibility criteria, features, interest rates, and FAQs.
Here are a few important features:
You cannot make partial withdrawals or premature cancellations before the lock-in period of 5 years gets over. But in case of the depositor’s death before the maturity of the PNB Fixed Deposit, the legal heir/nominee will receive the premature payment without a levy of penalty, even before the expiry of the lock-in period.
Interest on the PNB Tax Saver Fixed Deposit is liable for tax under the Income Tax Act. This is according to the annual receipt or accrual. It is also depending on the accounting method followed by the depositor.
You cannot take a loan on the PNB Tax Saver Fixed Deposit until the lock-in period of 5 years expires. After the expiry, you can avail of a loan as per the terms and conditions issued at that particular period.
If the PNB Fixed Deposit holder passes away and there is no nominee, then incumbents of the bank branch that issued the receipt will pay the sum due to the deceased, as the amount payable to the legal heir.
You need to select one of the below-given options before opening the Term Deposit Account:
Senior citizens will receive 0.50% additional interest. Staff members will receive 1% additional interest over and above the applicable rate, including that for the senior citizens. The payment of interest is as per the option selected by the depositor at the time of opening the deposit.
For the general public, the rate is 5.30% for a deposit of 5 years or between 5 years and 10 years. The same for senior citizens is 5.80%. For staff members (general and senior citizens), the PNB FD interest rate is 6.30%.
The interest is compounded quarterly. It is payable on maturity of the deposit. For the calculation purpose, the incomplete quarter is analysed at the end.
The interest on PNB Fixed Deposit is paid every month/quarter/half a year/year. The interest payment is quarterly is made at on simple interest rate. On the other hand, monthly interest is paid at a discounted value. The same is compounded quarterly in the case of yearly and half-yearly interest payments.
Here are the FAQs for Punjab National Bank Tax Saver FD Scheme:
After you receive the verified lien, you can avail of a loan on the FD. The margin retained by the bank is as follows according to the maturity period:
If you break the FD before maturity or want to make a partial withdrawal, then a penalty will apply as follows:
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