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PNB Recurring Deposit Interest Rates 2023

Updated on March 29, 2023 , 24114 views

The Punjab National Bank (PNB) offers RD scheme to customers as product to build your savings on a regular Basis. The Recurring deposit of PNB offers total repayable amount, inclusive of interest that depends on the deposit amount and the tenure.

PNB RD Rates

A recurring deposit is an investment cum savings option for those who want to save regularly over a certain period of time and earn a higher interest rate. It is a type of term deposit which allows one to save a fixed amount of money every month systematically. If you are familiar with SIP in Mutual Funds, RD works similarly in banking. Every month, a fixed amount of money is deducted either from a savings or a current account. And, at the end of the maturity, investors are paid back their invested money with accrued interest.

A user willing to open an Recurring Deposit account with the Punjab National Bank can choose any amount and term according to your convenience.

PNB RD Interest Rates 2023

Here're the interest rate offered by the PNB on RD accounts to regular citizens.

Tenure Interest Rates
180 days to 270 days 4.50%
271 days to 364 days 4.50%
1 year 5.10%
1 year 1 day to 3 years 5.10%
3 years 1 day to 5 years 5.25%
5 years 1 day to 10 years 5.25%

The FD Interest Rates are subject to frequent change.

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PNB RD Interest Rates for Senior Citizens

Following interest rate offered by the PNB on RD accounts to senior citizens.

Tenure Interest Rates
180 days to 270 days 5.00%
271 days to 364 days 5.00%
1 year 5.60%
1 year 1 day to 3 years 5.60%
3 years 1 day to 5 years 5.75%
5 years 1 day to 10 years 5.75%

The FD Interest Rates are subject to frequent change.

PNB RD Calculator

RD Calculator

Monthly Deposit:
Rate of Interest (ROI):

Investment Amount:₹180,000

Interest Earned:₹18,345

Maturity Amount: ₹198,345

A Recurring Deposit calculator is a good way of calculating maturity amount on RD. You can follow this method to estimate your RD amount on maturity.


RD Calculator INR
Monthly Deposit Amount 500
RD in month 60
Rate of Interest 7%
RD Maturity Amount INR 35,966
Interest Earned INR 5,966

PNB Recurring Deposit Scheme (E-RD)

Some of the features of PNB E-RD scheme are:

  • E-RD scheme is applicable to the Internet Banking users only
  • This scheme is for existing customer having operative Saving or Current Account
  • E-RD scheme will be issued to only those wherein the valid PAN document is held in the funded account
  • Proceeds on maturity shall be credited in the account through which the term deposit was funded
  • One closure or pre-mature of the E-RD scheme, one needs to visit the parent branch
  • The nomination Facility is available
  • Tax Deducted at Source (TDS) is applicable as per rules. The Bank will issue TDS Certificate for the tax deducted

Tax on PNB Recurring Deposit Scheme

  • In case the interest earned by users across all their RD accounts across all PNB branches in a year exceeds INR 10,000, the bank must deduct TDS at 10.3 percent

  • If a user's IT PAN is not updated in the Punjab National Bank records, it must deduct twice the TDS at 20.6 percent. So, an individual should update his/her PAN on the RD account

  • Individuals are required to add the interest Income on all their PNB RD’s and other RD’s to their Taxable Income for the year. Based upon their tax bracket, income tax is payable on their income. Users must estimate the interest income and all their other incomes based on which, one is required to pay Advance Tax on advance tax payment dates (15th Sep, 15th Dec, 15th March and 31st March)

  • Punjab National Bank also issues a Form 16A giving details of tax deducted on Recurring Deposit interest and tax deposited by it with government treasury. The TDS amount deposited by the PNB with Income Tax Department can be verified in individuals 26AS statement. This statement is available online on IT department website or through your net banking account. Once can claim credit for the TDS amount in their annual Income Tax Return

Documents Required to Open PNB RD Account

To open a recurring bank account with PNB Bank, you need to submit any one of the documents from both the category-

A. Proof of identity

  • Passport
  • PAN Card
  • Voter ID card
  • Driving License
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

B. Address Proof

Why Investing in SIP is Beneficial?

  • Systematic Investment plan (SIP) is a way to put your money in mutual funds. Investment can be done on a periodic basis - daily, weekly, monthly or quarterly

  • You need to deposit a small amount of money at every interval. The minimum amount can be as low as INR 500

  • SIPs can help in all kinds of investment goals, whether short- or long –term, depending on the frequency of investment, funds chosen and other factors

  • SIPs offer flexible instalment plans of daily, weekly, monthly, quarterly etc

  • Returns can be earned better here. The longer you invest via a SIP in mutual funds, especially in an Equity Fund, the higher are the chances to earn good returns

  • To Cancel SIP, the investors can simply close their investment and withdraw their money without any penal charges

Best Performing SIPs to Invest 2023

Here's a list of best performing equity SIPs for an investment horizon of five years and above

FundNAVNet Assets (Cr)Min SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2022 (%)
Principal Emerging Bluechip Fund Growth ₹183.316
↑ 2.03
₹3,124 100 2.913.638.921.919.2
Franklin Build India Fund Growth ₹70.543
↑ 1.00
₹1,184 500 -1.45.312.636.712.311.2
IDFC Infrastructure Fund Growth ₹25.083
↑ 0.26
₹615 100 1.43.71039.87.21.7
ICICI Prudential Banking and Financial Services Fund Growth ₹86.05
↑ 1.31
₹5,871 100 -
SBI Small Cap Fund Growth ₹108.688
↑ 1.49
₹15,395 500 -4.7-
Sundaram Rural and Consumption Fund Growth ₹59.1415
↑ 0.39
₹1,107 100 -5.6-7.65.922.97.69.3
L&T India Value Fund Growth ₹60.535
↑ 0.99
₹7,782 500 -1.16.3534.7115.2
L&T Emerging Businesses Fund Growth ₹47.2773
↑ 0.84
₹8,672 500
Tata Equity PE Fund Growth ₹204.263
↑ 3.22
₹5,120 150 -32.34.627.68.75.9
Aditya Birla Sun Life Banking And Financial Services Fund Growth ₹38.46
↑ 0.60
₹2,385 1,000 -
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Dec 21

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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