Punjab National Bank Interest Rate for Senior Citizens
PNB RD Interest Rates for Senior Citizens | PNB RD Interest Rates 2023 for Senior Citizens | Punjab National Bank Recurring Deposit (RD) Interest Rates
PNB Recurring Deposit Scheme for senior citizens is a savings scheme offered by Punjab National Bank exclusively for senior citizens. The scheme is designed to help senior citizens save money and earn a good interest rate on their deposits. This scheme offers a host of benefits for senior citizens who are looking for a safe and secure investment option.
PNB Bank Senior Citizen RD Interest Rates 2024
The interest rate offered by PNB Recurring Deposit Scheme for senior citizens is higher compared to the regular recurring deposit scheme. The interest rate offered by PNB on RD scheme for senior citizens starts from 6.50% per annum for a tenure of 6 months. The interest rate is subject to change as per the guidelines of the Reserve Bank of India.
| RD Tenure | Interest Rate |
|---|---|
| 180 days to 270 Days | 6.50% |
| 271 days to less than 1 year | 6.75% |
| 1 year | 7.25% |
| above 1 year to 399 days | 7.30% |
| 400 days | 7.75% |
| 401 days to 2 years | 7.30% |
| above 2 year & upto 3 years | 7.50% |
| above 3 year & upto 5 years | 7.00% |
| above 5 years & upto 10 years | 7.30% |
PNB Bank Senior Citizen RD Account Purpose
The main purpose of the PNB Recurring Deposit Scheme for senior citizens is to provide a safe and secure investment option to senior citizens. This scheme helps senior citizens to accumulate their savings over a period of time and earn a good interest rate on their deposits.
PNB Bank Senior Citizen RD Account Features
- Period of RD ranges from 6 months to 120 months in multiple of 1 months.
- Can be opened individually (singly) or jointly with others.
- Loan/ Overdraft against deposit is available as a loan against term Deposit.
- Nomination facility is available.
- TDS is applicable as per rules. The Bank will issue TDS Certificate for the tax deducted.
| PNB Senior Citizen RD | Features |
|---|---|
| Eligibility | Applicant must be of 60 years of age or above |
| Amount of RD | Minimum Rs.100 per month and in multiples of Rs.100 thereof, no limit on maximum amount |
| Tenure | Minimum 6 months and Maximum 120 months (multiples of 1 month) |
| Nomination Facility | Available |
| Loan Facility | Available |
| TDS | Applicable as per prevailing Income Tax rules. The Bank will issue TDS Certificate for the tax deducted. |
| Penalty for Delayed Payment | Up to Re.1 per Rs.100 installment per month |
PNB Bank Senior Citizen RD Amount
Minimum Amount to be deposited is Rs.100 and then in multiples of Rs.100 thereafter with a capping on maximum amount.
| PNB Senior Citizen RD | Amount |
|---|---|
| Minimum monthly instalment | Rs.100 |
| Additional monthly instalment | Rs.100 thereof |
| Maximum monthly instalment | No upper limit |
PNB Bank Senior Citizen RD Account Eligibility Criteria
To be eligible for the PNB Recurring Deposit Scheme for senior citizens, an individual must be a senior citizen, i.e. above 60 years of age. The applicant must have a valid identity proof, address proof and PAN card. The applicant can either be an Indian citizen or an NRI.
PNB Bank Senior Citizen RD Account Documentation
To open a PNB Recurring Deposit Scheme for senior citizens account, the applicant needs to submit the following documents:
- Identity proof such as Aadhaar card, PAN card, Voter ID card, Passport, or driving license.
- Address proof such as Aadhaar card, Passport, Voter ID card, or driving license.
- Age proof such as PAN card, Passport, or birth certificate.
PNB Bank Senior Citizen RD Tenure
The tenure of the PNB Recurring Deposit Scheme for senior citizens is for a minimum of 6 months and a maximum of 120 months, in multiple of 1 month.
PNB Bank Senior Citizen RD Account Benefits
The PNB Recurring Deposit Scheme for senior citizens offers a host of benefits such as:
- Higher Interest Rate: The scheme offers a higher interest rate compared to regular recurring deposit schemes.
- Flexibility: The scheme offers flexibility in terms of deposit amount, tenure and frequency of deposit.
- Tax Benefits: The depositor can claim tax benefits under Section 80C of the Income Tax Act, 1961 for the deposits made in this scheme.
- Safe and Secure: The scheme is safe and secure as it is offered by a reputed public sector bank.
PNB Recurring Deposit Scheme for senior citizens is an attractive investment option for senior citizens who are looking for a safe and secure investment option. The scheme offers a higher interest rate compared to regular recurring deposit schemes, tax benefits and flexibility in terms of deposit amount, tenure and frequency of deposit. It is important for senior citizens to carefully evaluate their investment options and choose a scheme that best suits their needs and financial goals.
How to Open Recurring Deposit Account with PNB for Senior Citizens?
You can choose any of the following ways to open a Recurring Deposit with PNB:
Option 1: How to Open PNB Recurring Deposit Account using Branch Visit?
By visiting the nearest PNB branch and any of the representatives will guide you through the RD account opening process.
Option 2: How to Open PNB Recurring Deposit Account using Internet Banking?
This option is available for existing customers having operative saving/ current account with PNB. Applicable to Internet Banking Users only. e-RD will be issued to only those wherein the valid PAN document is held in the funded account.
- Log into PNB internet banking account using your internet banking credentials i.e. your user ID and password.
- Go to the 'My Accounts' section.
- Select the 'Open Recurring Deposit' option.
- Follow the instructions in order to open RD account online.
PNB Bank Senior Citizen RD Account Maturity
Payment of RD will be due on maturity or one month after deposit of last installment, whichever is later.
Punjab National Bank Senior Citizens RD Calculator
You can use PNB Bank Senior Citizens RD calculator to help you estimate your returns. Here's how you can use it:
- Monthly Investment Amount: Decide how much you want to invest every month.
- Tenure: Choose the duration for which you plan to invest in the RD.
- Interest Rate: PNB currently offers an interest rate as mentioned in the above table based on its tenure.
Using the PNB RD Calculator, you can calculate:
- The total amount deposited by you at the end of the tenure.
- The maturity value (total corpus) at the end of the tenure.
- The aggregate interest amount which you will earn over the investment period.
PNB Bank Senior Citizen RD Account Irregular or Discontinued
Non-deposit of pending installments till maturity date, interest will be paid on daily products basis compounded half yearly. On depositing of pending installments before the maturity date, penalty will be charged at Rs.1 for Rs.100 p.m.
Rules & Regulations for Recurring Deposit
- Depositor Needs to fulfil KYC norms as per RBI directive.
- Senior Citizen interest rates are applicable only for domestic deposits.
- The depositor has to deposit the monthly installments regularly till the maturity of RD account.
- In case the depositors failed to deposit Installment regularly, penalty will be levied.
- The maturity proceeds of the RD account is usually paid with in 30 days from the date of last instalment deposited.
- It is very important to submit your maturity instructions which should be clear. If you want the RD amount to be credited to your savings account or to be used in opening of a fixed deposit, you need to inform the bank in advance.
- Standing instruction will be accepted for transfer of monthly installments from other accounts maintained by the account holder.
- Penalty will be applicable, if the amount is withdrawal before maturity.
Factors to Consider Before Applying for Recurring Deposit
- Tenure of recurring deposit account
- Interest rate offered by the bank
- Conditions for premature withdrawal
Documents Required for Punjab National Bank RD for Senior Citizens
- Identity Proof (any one): Passport, Driving License, Voter ID Card, Government Approved College/university I.Card, Government/Semi government/Department I.Card Aadhar Card
- Address Proof(any one): Electricity Bill (not more than 2 months old), BSNL Landline Telephone Bill (not more than 2 months old), Municipal Tax Bill, Voter ID card, Aadhaar card, or passport, other proof acceptable by Bank.
- Passport Size Photograph: 2 Copies
- Pan Card or / Form 60 or 61 (if customer does not have PAN Card)
- Form 15H to avoid TDS
- Age Proof Certificate: which can be a birth certificate or any government-issued document that states the applicant's age.
Rules for Renewal of Recurring Deposit
Renewal of RD is a simple process. Renewal of the RD is one of the most common options available to the depositors after the maturity of an RD. Senior citizens should be aware of the rules for the renewal of RDs before investing in them. They should check the tenure, renewal options, terms and conditions, premature renewal, etc. to make an informed decision. A well-researched investment can provide financial security and peace of mind to senior citizens.
- Depositors can choose to renew their RD for the same duration or for a different duration.
- Depositors have the facility to renew their RD either online or by visiting their bank branch.
- No additional documentation is required for renewal if the RD is automatically renewed or if you are renewing it through the bank's online platform. However, minimal documentation may be needed if you are doing manual renewal at the branch.
- Some banks have the option of auto-renewal of RD. Auto-renewal of RD means that the renewal of the RD will happen automatically on the date of maturity for the same duration as the original RD. The interest rate applicable will be the prevailing rate at the time of renewal.
- The interest rate for the renewed RD will be based on the rates prevailing at the time of renewal. It is important to know that the current rates may differ from the rates of your original RD.
- If you need funds, some banks allow partial withdrawal of the RD amount before renewal.
- The interest earned on the renewed RD will be subject to tax and you need to consider the same for the accounting purpose.
Safety of Recurring Deposit Funds
The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in recurring deposits of up to Rs 5 lakh for all the member banks.
Tax Benefit under Punjab National Bank RD for Senior Citizens
It is important to note that senior citizens can claim a tax deduction of up to Rs. 1.50 lakh under Section 80C of the Income Tax Act, 1961, on the amount invested in RD schemes for senior citizens, if the RD tenure is atleast 5 years. This tax benefit makes these schemes more attractive to senior citizens who are looking for safe investment options that offer tax benefits.
TDS Under Punjab National Bank RD for Senior Citizens
Senior citizens need to understand the tax implications of investing in RDs before making any investment in RD. Tax Deducted at Source (TDS) is a tax that is deducted from the interest earned on an RD. In this article, we will discuss the TDS rate on Recurring Deposit for senior citizens.
The TDS rate on Recurring Deposit for senior citizens is 10% of the interest earned, provided that the interest income is more than Rs. 50,000 per annum.
This limit was increased from Rs. 10,000 to Rs. 50,000 in the 2018 Union Budget, providing relief to small depositors. It is important to note that this limit is applicable to the total interest earned by the senior citizen in a financial year, including interest from savings accounts, fixed deposits, and recurring deposits.
Senior citizens can avoid TDS by submitting Form 15H to the bank. This form is a declaration stating that the senior citizen's total income for the financial year is below the taxable limit, and hence no TDS should be deducted. It is important to note that Form 15H needs to be submitted to each bank where the senior citizen holds an RD account.
If TDS is deducted from the senior citizen's RD account, they can claim a refund by filing their income tax return. The TDS amount will be considered as advance tax paid by the senior citizen and will be adjusted against their final tax liability. If the TDS amount is more than the final tax liability, the senior citizen can claim a refund of the excess amount.
Role of Senior Citizens RD in Financial Planning
No Risk of Loss
RDs does not have any risk of principal loss unlike stocks or mutual funds. The invested amount is safe and the returns are assured. This feature is particularly important for retirees who cannot afford to lose their savings.
Creation of Big Corpus
The maturity amount from RDs can be used as a supplementary income after retirement. It can be used to meet regular expenses, medical bills or any other financial needs.
Tax Benefits
Investments in RDs for the tenures 5 years and above also come with certain tax benefits under Section 80C of the Income Tax Act for providing additional financial relief for retirees.
Supplementary Income
If you invest the funds accumulated under RD account in any systematic withdrawal plan or monthly income plan, then you can use it as an additional monthly income in addition to any pension income which you receive.
Flexible Tenure
RDs offer flexibility in selecting tenure which allows senior citizens to choose a period according to their financial goals. Whether it's short-term goals or long-term targets, the investors can select an RD tenure that suits their needs so that the funds can be available when required.