PNB Housing Finance offers Fixed Deposits (FDs) as a low-risk savings tool that can help individuals grow their savings over a specific tenure. These FDs are a popular option for investors who prefer a stable return on their investments. The FD interest rates from PNB Housing Finance vary based on the tenure and the amount deposited, offering a range of options to suit different investment needs.

Current PNB Housing Finance Fixed Deposit Interest Rates

PNB Housing Finance provides competitive interest rates on its FDs. The rates may differ for regular investors and senior citizens, with the latter often benefiting from slightly higher rates. As of the latest update, here is a breakdown of the interest rates for various tenures:

• Senior citizens receive an additional 0.30% p.a. for tenures of 12-23 and 24-35 months.

• Senior citizens receive an additional 0.20% p.a. for tenures of 36 months and above.

Note: The rates mentioned are indicative and subject to change. For the most current rates, refer to the PNB Housing Finance website.

Features of PNB Housing Finance FDs

Flexible Tenure Options

Investors can choose a tenure ranging from 12 to 60 months. The interest rate varies according to the selected tenure.

Minimum Deposit

The minimum deposit amount is ₹10,000. This makes it accessible for many investors.

Interest Payout Options

Interest on these FDs can be received either monthly, quarterly, half-yearly, or annually. Investors can choose a payout option that aligns with their financial needs.

Premature Withdrawal

Premature withdrawal is allowed, though it may incur a penalty. This feature provides some liquidity in case of emergencies.

Benefits of Investing in PNB Housing Finance FDs

Low Risk

As a fixed-income product, FDs issued by PNB Housing Finance are considered low-risk. The returns are not subject to market volatility, making them a suitable choice for risk-averse investors.

Certainty of Returns

Investors know the returns they could get at the time of investment. The interest rates are fixed for the entire tenure.

Special Rates for Senior Citizens

PNB Housing Finance offers higher interest rates to senior citizens, making it an attractive option for those looking to maximise their retirement savings.

Tax Implications on PNB Housing Finance FDs

Interest earned on FDs is subject to tax under the Income Tax Act, 1961. PNB Housing Finance deducts Tax Deducted at Source (TDS) if the interest earned in a financial year exceeds ₹40,000 for regular investors and ₹50,000 for senior citizens. The current TDS rate is 10%, provided the investor has submitted their PAN. If the PAN is not submitted, TDS could be deducted at a higher rate of 20%.

How to Claim TDS Refund on a Fixed Deposit

If TDS is deducted on the interest earned from an FD, investors can claim a refund while filing their Income Tax Return (ITR) if their total income falls below the taxable limit. Here’s how you can claim a TDS refund:

Collect TDS Certificates

PNB Housing Finance will provide a TDS certificate, also known as Form 16A. This document contains details of the TDS deducted and deposited with the government.

Verify Form 26AS

Cross-check the TDS details with Form 26AS on the Income Tax Department's website. Form 26AS is a consolidated statement of all taxes deducted and deposited against the investor's PAN.

File Income Tax Return (ITR)

Declare the interest income from the FD under the 'Income from Other Sources' section while filing the ITR. Calculate the total tax liability for the financial year.

Claim Refund

If the total income, including the FD interest, is below the basic exemption limit, you can claim a refund for the TDS deducted. Ensure that you submit accurate details to avoid discrepancies.

Submission of Form 15G/15H

To avoid TDS deduction, investors whose total income is below the taxable limit can submit Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) at the beginning of the financial year.

Premature Withdrawal and Interest Rates

PNB Housing Finance allows premature withdrawal of FDs, subject to specific conditions. The interest rate applicable in case of premature withdrawal may be lower than the contracted rate. It is generally 1% lower than the original rate for the completed tenure. For instance, if you invest in an FD with a 36-month tenure at 7.50% p.a. and withdraw after 24 months, the applicable interest rate could be 1% lower than the 24-month rate.

Loan Against PNB Housing Finance FDs

PNB Housing Finance offers loans against its FDs. Investors can avail of a loan of up to 75% of the FD amount. This facility can help investors meet financial emergencies without breaking the FD and losing out on interest. The interest rate on such loans is generally 2% to 2.5% higher than the FD interest rate.

Auto-Renewal and Maturity Instructions

Investors can opt for auto-renewal of their FDs upon maturity. This feature allows the FD to be renewed for the same tenure at the prevailing interest rate, ensuring continuous growth of the investment. Alternatively, investors can provide maturity instructions for the payout of both principal and interest.

Nomination Facility

PNB Housing Finance provides a nomination facility for its FD holders. This facility allows investors to nominate a person who will receive the FD amount in the event of the investor’s demise. It ensures that the funds are transferred smoothly to the nominee.

Conclusion

PNB Housing Finance FDs could be a favourable option for investors seeking a low-risk investment with fixed returns. With flexible tenure options, competitive interest rates, and features like loans against FDs, these deposits offer a blend of safety and liquidity. However, investors should keep in mind the tax implications and the possibility of premature withdrawal penalties. Always ensure to check the latest interest rates and terms on the official PNB Housing Finance website before making an investment decision.