A fixed deposit is considered among the safest investment option available in India. This may make you think that you will get a very low return on such an investment. But that is simply not true. You can get a high FD interest rate with PNB Housing finance Fixed Deposit.
The interest on fixed deposits by PNB Housing varies based on the type of fixed deposit account, the tenure of the deposit and the frequency at which the interest is accrued. For example, if you choose to have the interest paid out monthly instead of annually – the applicable FD interest rates per annum would be 0.30 percentage points lower. Further, PNB Housing also offers a higher interest rate on senior citizens’ Fixed Deposits.
In case you have an emergency and would like to withdraw from your fd account before the tenure is complete, you can do so any time after the lock-in period at a nominal interest rate penalty. If you make a withdrawal six months after the fixed deposit account was opened, interest will be paid at 1% less than the applicable rate for the period for which the deposit was held.
Applicable interest rates are summarized below:
| Fixed Deposit up to Rs. 5 crore | ||||||
| Tenure (Months) | Cumulative Option* ROI (p.a.) | Non-Cumulative Option ROI (p.a.) | ||||
| ROI (p.a.) | Tentative yield to maturity | Monthly | Quarterly | Half Yearly | Annual | |
| 12 – 23 | 8.30% | 8.30% | 8.00% | 8.05% | 8.10% | 8.30% |
| 24 – 35 | 8.30% | 8.64% | 8.00% | 8.05% | 8.10% | 8.30% |
| 36 – 47 | 8.40% | 9.13% | 8.10% | 8.15% | 8.20% | 8.40% |
| 48 – 59 | 8.40% | 9.52% | 8.10% | 8.15% | 8.20% | 8.40% |
| 60 -71 | 8.45% | 10.00% | 8.15% | 8.20% | 8.25% | 8.45% |
| 72 – 84 | 8.30% | 10.23% | 8.00% | 8.05% | 8.10% | 8.30% |
| 120 | 8.25% | 12.09% | 7.95% | 8.00% | 8.05% | 8.25% |
Senior Citizens Fixed deposit interest rates:
| Senior Citizen Fixed Deposit up to Rs.1 crore | ||||||
| Tenure (Months) | Cumulative Option* ROI (p.a.) | Non-Cumulative Option ROI (p.a.) | ||||
| ROI (p.a.) | Tentative yield to maturity | Monthly | Quarterly | Half Yearly | Annual | |
| 12 – 23 | 8.55% | 8.55% | 8.25% | 8.30% | 8.35% | 8.55% |
| 24 – 35 | 8.55% | 8.89% | 8.25% | 8.30% | 8.35% | 8.55% |
| 36 – 47 | 8.65% | 9.38% | 8.35% | 8.40% | 8.45% | 8.65% |
| 48 – 59 | 8.65% | 9.77% | 8.35% | 8.40% | 8.45% | 8.65% |
| 60 -71 | 8.70% | 10.25% | 8.40% | 8.45% | 8.50% | 8.70% |
| 72 – 84 | 8.55% | 10.48% | 8.25% | 8.30% | 8.35% | 8.55% |
| 120 | 8.50% | 12.34% | 8.20% | 8.25% | 8.30% | 8.50% |
Income tax on Fixed Deposit interest:
- Fixed deposit interest is taxed at the same rate as the rest of your income. So, if your total income is under ₹2.5 lakh per annum, you will have to pay no tax on the FD interest. On the other hand, if your total income falls under a 30% tax slab, the same will be charged on interest from a fixed deposit.
- Make sure the interest earned from the fixed deposit is declared under “income from other sources” to avoid getting a notice from the Income Tax Department.
- PNB Housing would deduct tax at source on the interest earned on fixed deposits if the interest is higher than ₹10,000 per annum.
- You can submit Form 15G or Form 15H (for senior citizens) if you would like TDS not to be deducted.
- Remember that tax is applicable whenever interest is accrued and not when it is paid out to you. Therefore, even if you have a cumulative FD, the tax will be calculated every year.
- If no tax is due on fixed deposit interest for you, but the TDS is deducted – you can claim a refund while filing your income tax returns
- If the tax slab applicable to you is 20% or 30% tax rate, then you would have to pay tax on the interest earned on a fixed deposit higher than the TDS deducted.
