The interest rates on fixed deposits under 5 crore rupees have been revised by PNB Housing Finance Limited (PNB Housing), a registered housing finance company with National Housing Bank (NHB). The new fees go into effect on October 7, 2022, according to the organisation’s official website.
After revision, the corporation now provides deposits maturing in 12 to 120 months with interest rates ranging from 7.00% to 7.40%. The maximum interest rate on fixed deposits offered by PNB HFL is currently 7.55%, which is significantly higher than the 7% retail inflation rate recorded in August 2022. These deposits have maturities between 36 and 47 months.
Under the cumulative option, PNB on deposits maturing in 12 – 23 months and on deposits maturing in 24 – 35 months is offering 7% and 6.80% interest rate. Cumulative fixed deposits maturing in 36 – 47 months will now offer an interest rate of 7.55% and deposits that mature in 48 – 120 months will now fetch an interest rate of 7.40%.
On a non-cumulative fixed deposit, investors can earn interest rates every month. Customers have the option of receiving payments monthly, quarterly, or annually from PNB Housing; however, when choosing the cumulative option, interest is added to the fixed deposit on an annual basis and paid out along with the principal at maturity.
Senior citizens (those over 60) are eligible for special senior citizen rates at PNB Housing Finance Ltd., which offer 0.25% higher rates of interest on deposits up to one crore. PNB Housing’s fixed deposits have received the FAA+/Negative rating from CRISIL and the AA/Stable rating from CARE, both of which indicate high levels of safety. PNB Housing accepts a minimum deposit of 10,000 for all other schemes and a minimum of 25,000 for monthly income plans.
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PNB Housing’s rules allow for the early withdrawal of your Fixed Deposit. The fixed deposit can be withdrawn after a three-month mandatory lock-in period, but account holders will be penalised and the interest rate will be lower than what was initially promised.
PNB Housing Finance has said on its website that “You have the option of premature withdrawal from your fixed deposit account anytime after three months from the date of deposit. An interest at 4% per annum will be paid to individuals who make a premature withdrawal within six months from the date of deposit. For premature withdrawals made after six months, an interest rate 1% lower than applicable on public fixed deposits for the period for which the deposit has run is offered.”
