Government banks in India are considered safe investment options. Due to recent changes in interest rates, many banks have reviewed their FD rates. In this context, Punjab National Bank has also revised the interest rates on its fixed deposit schemes for different tenures.
FDs can be opened at the bank for short to long periods. Generally, FD facilities are available for periods ranging from 7 days to 10 years, and different interest rates are offered for different tenures. According to several reports, the bank offers interest rates ranging from approximately 3 percent to over 7 percent on different tenures, depending on the investment period.
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Impact of RBI policies on FD rates
In the past, the Reserve Bank’s monetary policies have impacted the banking system. Following indications of easing interest rates, several government banks have changed both loan and deposit rates. Recent data shows a decrease in loan rates in the banking system, which has affected the trend of interest rates in the banking sector.
As a result, many banks have adjusted their FD rates to maintain a balance between deposits and loans.
Interest rates at PNB for different tenures
According to the bank’s official rates, different interest rates are offered for different tenures. For example, some schemes offer more than 6 percent interest, and some specific tenures, such as around 390 days, offer higher interest rates.
Previous revisions also showed that relatively higher interest rates are offered for tenures like 390 days, while rates are kept somewhat balanced for longer tenures.
Understand the potential return on a Rs. 2 lakh FD
If an investor opens an FD of approximately Rs. 2 lakh for a period of about 5 years, they can get a good fixed return based on the interest rate. For a regular investor, this return can go up to around Rs. 70,000.
Senior citizens, however, receive the benefit of additional interest, which can further increase the maturity amount. Over the long term, compounding leads to higher overall returns.
Senior citizens receive an additional benefit
Government banks typically offer higher interest rates to senior and super senior citizens. In many schemes, this difference can be 0.50 percent or more. This increases the total earnings on long-term fixed deposits.
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Things to consider before investing
Before investing in a fixed deposit, be sure to understand the investment period, interest payment options, and tax rules. Long-term fixed deposits may offer higher interest rates, but withdrawing the money before maturity may incur penalties.
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Rohit P
My name is Rohit Pal, and I have been working in the field of journalism for the past five years. During this time, I have written on a variety of topics, including business, automobiles, technology, and politics. I have worked with several major organizations and am currently working with Timesbull.
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