PNB Tax Saving Fixed Deposit Highlights
| Deposit Amount | Rs 100 to Rs 1.5 lakh in a financial year |
| Tenure | 5 years |
| Interest Payable Options | Monthly, Quarterly, Half yearly, Yearly, At Maturity (Re-investment) |
| Premature Withdrawal | Not allowed |
| Loan Against FD Facility | Not available |
| Auto-Renewal Facility | Not available |
| Nomination Facility | Available |
PNB Tax Saving FD
| Tenure | Interest Rates (% p.a.) | |
| For General Public | For Senior Citizens | |
| 5 years | 6.50 | 7.00 |
| Above 5 years to 1894 days | 6.50 | 7.00 |
| 1895 days | 6.35 | 6.85 |
| 1896 to 10 years | 6.50 | 7.30 |
Last updated on 23 January 2025
Comparison of Top 20 Scheduled Banks based on FD Rates
Banks | Highest FD rate (% p.a.) | 1-year FD rate (% p.a.) | 3-year FD rate (% p.a.) | 5-year FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
| Unity Small Finance Bank | 9.00 | 7.85 | 8.15 | 8.15 | 0.50 |
| North East Small Finance Bank | 9.00 | 7.00 | 9.00 | 6.25 | 0.50 |
| Shivalik Small Finance Bank | 8.80 | 6.00 | 7.50 | 6.50 | 0.50 |
| Suryoday Small Finance Bank | 8.60 | 8.25 | 8.25 | 8.60 | 0.50 |
| Utkarsh Small Finance Bank | 8.50 | 8.00 | 8.50 | 7.75 | 0.60 |
| ESAF Small Finance Bank | 8.38 | 6.00 | 6.75 | 6.25 | 0.50 |
| Jana Small Finance Bank | 8.25 | 8.25 | 8.25 | 8.20 | 0.50 |
| Ujjivan Small Finance Bank | 8.25 | 8.25 | 7.20 | 7.20 | 0.50 |
| Equitas Small Finance Bank | 8.25 | 8.10 | 8.00 | 7.25 | 0.50-0.75 |
| SBM Bank | 8.25 | 7.05 | 7.30 | 7.75 | 0.50 |
| AU Small Finance Bank | 8.10 | 7.25 | 7.50 | 7.25 | 0.50 |
| DCB Bank | 8.05 | 7.10 | 8.05 | 8.05 | 0.50 |
| Bandhan Bank | 8.05 | 8.05 | 7.25 | 5.85 | 0.50-0.75 |
| RBL Bank | 8.00 | 7.50 | 7.50 | 7.10 | 0.50 |
| Induslnd Bank | 7.99 | 7.75 | 7.25 | 7.25 | 0.50 |
| IDFC First Bank | 7.90 | 6.50 | 6.80 | 6.75 | 0.50 |
| YES Bank | 7.75 | 7.25 | 7.25 | 7.25 | 0.50-0.75 |
| Central Bank of India | 7.50 | 6.85 | 7.00 | 6.75 | 0.50 |
| Punjab & Sind Bank | 7.45 | 6.30 | 6.00 | 6.00 | 6.00 |
| HDFC Bank | 7.40 | 6.60 | 7.00 | 7.00 | 0.50 |
Features of Punjab National Bank Tax Saving FD
- Deposit amount – Minimum: Rs. 100; Maximum – Rs. 1.5 lakhs in a financial year
- Depositors can open PNB tax-saver FD with income and maturity options. The income option includes the following:
- Quarterly interest pay-out wherein the interest is paid on a simple rate of interest
- Monthly interest pay-out wherein the interest is paid monthly at discounted value
- Half-yearly interest pay-out wherein the interest is quarterly compounded and credited half yearly
- Yearly interest pay-out wherein the interest is quarterly compounded and credited yearly
Under the maturity option (re-invested interest), the FD interest is compounded quarterly and paid on maturity. Thus, the interest component is reinvested into the principal amount and thereby, helps in deriving the power of compounding.
- Additional 0.50% p.a. interest rate is offered to senior citizen FD depositors, over and above the regular FD interest rates.
- In the case of joint deposits, the tax benefits can only be availed by the first account holder of the fixed deposit account
- As with any other tax saver FD schemes, PNB Tax Saver FD comes with a lock-in period of 5 years, i.e., premature withdrawal or partial withdrawal of fixed deposits are not allowed, unlike regular FDs
How to Open PNB Tax Saving FD
Individuals can open tax saver FD either through internet banking, mobile banking or by visiting PNB Bank branch.
PNB Bank Tax Saving FD Calculator
You can use the fixed deposit interest calculator to know the FD maturity amount and interest income. You just need to enter the principal amount, tenure and applicable PNB FD interest rates.
Tax Deduction on PNB Tax Saver FDs
The principal amount of the PNB tax saver fixed deposit qualifies for an income tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. However, the interest income on FD is taxable in the IT return under the head “Income from other sources”.
Senior citizens can claim income tax deductions of up to Rs 50,000 on the interest income of deposits (including fixed deposits) under Section 80TTB of the Income Tax Act. Here, the term ‘deposits’ refers to the deposit accounts opened with post offices, cooperative societies engaged in the business of banking, and banks.
TDS on PNB Tax Saver Fixed Deposits
TDS @ 10% is deducted on the FD interest in a financial year if interest income exceeds Rs. 40,000 (Rs. 50,000 in the case of senior citizens). However, if PAN details are not provided, TDS @ 20% is deducted on the fixed deposit interest.
PNB Tax Saving FD Eligibility Criteria
- Resident Individuals, or
- Hindu Undivided Family
Documents Required For Opening Tax Saving FD
Here are the following documents required for opening tax saving fixed deposit account:
- Photocopy
- PAN
- Aadhaar Card
- Proof of age (for senior citizens)