PNB Housing Finance FD

PNB Housing Finance Limited (PNB HFL) is a housing finance company subsidiary of Punjab National Bank (PNB). It is registered with National Housing Bank (NHB). It was incorporated on November 11, 1988, under the Companies Act, 1956.

PNB Housing offers safe investment options for individuals and companies under the PNB HFL Fixed Deposit Scheme. You can invest in various deposit schemes with an attractive rate of interest. The company now has over three decades of specialized experience in housing finance. It has a robust network of branches across the country. Consequently, customers can seamlessly avail of financial services (loans and deposits) from any of these branches. PNB Housing Fixed Deposits are one of the safest investment avenues (CRISIL FAA+/Negative rating). It can help you grow your savings while offering stability and safety of the principal amount. You can take control of your investments by investing in PNB HFL FD. It offers assured returns accompanied by greater flexibility and higher stability. In addition to these features, you also get the option to select a tenure between 12 months and 120 months, as per your financial needs.

Types of PNB HFL Fixed Deposit:

PNB Housing Finance Limited fixed deposit scheme has delivered a consistent performance for over three decades. As a result, PNBHFL has received a FAA+/ Negative rating from CRISIL and an AA/ Stable rating from CARE for the deposit scheme. The scheme offers assured and attractive returns.

PNBHFL offers the following fixed deposit scheme:

PNB HFL Non-Cumulative Deposit

Under this PNB Housing Finance Limited offers regular monthly, quarterly, half-yearly, or annual income plans to depositors. PNBHFL directly credits the interest to the depositor’s bank account on the specified date. The scheme is ideal to meet regular monthly expenses.

• Minimum deposit of Rs. 25,000 for monthly income scheme
• The minimum investment period for PNB Housing Fixed Deposit is twelve months
• The maximum period for PNB Housing Fixed Deposit is ten years
• Loan Facility: Available, depositors can take a loan up to 75% after three months from the date of deposit. The interest rate on a loan will be around 2% above the deposit rate
• Interest Payout: As opted
• TDS: No TDS on interest credited up to INR 5,000 per financial year. In case the depositor doesn’t provide PAN details, the TDS rate will be 20%. For deposits of INR 50,000 and above, submission of PAN details is mandatory.
• Premature withdrawal facility: Available after three months. However, it attracts a penalty.
• Renewal: Depositors can renew their investments by signing the required documents.
• Nomination Facility: Available for all PNB Housing deposits as per guidelines provided by the National Housing Bank.

PNB HFL Cumulative Deposit

Under this interest is credited to the fixed deposit annually, and is paid at the time of maturity along with the principal amount. Moreover, this option helps to create a corpus as the money gets the benefit of compounding.

• Minimum deposit of Rs. 10,000 for a cumulative deposit scheme
• The minimum period of investment for PNB Housing Fixed Deposit is twelve months
• The maximum period for PNB Housing Fixed Deposit is ten years.
• Loan Facility: Available, depositors, can take a loan up to 75% after three months from the date of deposit. The interest rate on a loan will be around 2% above the deposit rate.
• Interest Payout: Annually, along with principal amount at the time of maturity
• TDS: No TDS on interest credited up to INR 5,000 per financial year. In case the depositor doesn’t provide PAN details, the TDS rate will be 20%. For deposits of INR 50,000 and above, submission of PAN details is mandatory.
• Premature withdrawal facility: Available after three months. However, it attracts a penalty.
• Renewal: Depositors can renew their investments by signing the required documents.
• Nomination Facility: Available for all PNB Housing deposits as per the National Housing Bank guidelines.

PNB Housing Corporate Deposit

PNB Housing offers a Corporate Deposit scheme. It is ideal for investments by Body Corporates, Private/Public Limited Companies, Corporations, Statutory boards, Financial Institutions, and other Banks. The key features of the PNB Housing Finance Corporate Deposit Scheme are:

• A minimum deposit of Rs 10 lakhs
• There is no maximum limit for the deposit amount
• Investor deposits an account payee cheque drawn in the favour of PNB Housing Finance Limited.
• The depositor can also make payment through RTGS and intimate their PNBHFL Branch. Please note that depositors must intimate PNB Housing by 11:00 AM on any working day. Only then FD interest will start accruing from that date.
• Interest on non-cumulative fixed deposits will start crediting as per the below schedule:

Joint Fixed Deposit – Adding Co-applicants in Deposits

1. You can open a joint fixed deposit account with a maximum of three joint holders.
2. The interest for non-cumulative deposits will be paid to the first-named applicant. The discharge given by them will be binding on all the joint holders. The interest for cumulative deposits is deemed to be accrued in the name of the first applicant.
3. The repayment at maturity would be done as per the instructions provided in the FD application form.

Non-Resident Indians (NRIs) Fixed Deposit

1. The maximum tenure of three years is available for NRI fixed deposits.
2. Repayment of the amount and payment of any interest earned will be done through a credit to the depositor’s NRO account.
3. As per the RBI regulations, PNB Housing accepts fixed deposits from NRIs and Persons of Indian Origin on a non-repatriation basis. You cannot transfer the interest earned and the principal to your country of residence or convert it into a foreign currency.
4. Tax will be deducted at the source, as applicable.

Benefits of PNB Housing Fixed Deposits

• Return on your Investment: PNB Housing Fixed Deposits offer a lucrative interest rate with a reliable interest flow. You can use the PNBHFL FD to plan and manage your expenses easily. The high-interest rate on FD allows you to accumulate wealth and grow your corpus. The stable returns make PNB Housing FDs one of the best investment avenues for savings.
• Assured Returns: There is no influence of market fluctuations on PNB Housing Fixed Deposits. This ensures you get assured gains on your FD investment with PNB HFL.
• Flexible Tenure: You can choose tenure between 12 and 120 months for your PNB Housing Fixed Deposits. Leverage the flexibility to pick a tenure that suits your financial needs. Take into account your liquidity needs and pick the right tenure. Carefully doing so will allow you to enjoy a higher cash inflow from your investments.
• No TDS Deduction: Tax to be deducted at source is NIL on interest income up to Rs.5000 per financial year, in PNB Housing Fixed Deposits.
• Loan Facility against PNB Housing Fixed Deposits: Loan facility up to 75% of the deposit amount is easily available from all branches of PNB Housing and PNB.
• Premature Cancellation: Premature cancellation of PNB Housing Fixed Deposits is allowed after 3 months of deposit.

Features of PNB HFL Fixed Deposit

• High Safety Stability and Credibility Assurance: PNBHFL Fixed Deposits are rated CRISIL FAA+/Negative & CARE AA/stable which indicates their High level of Safety. The rating indicates the degree of safety based on time and amount of interest and principal. Your investments are never at risk as the rating is very strong.
• 120+ Branches across India: PNBHFL FD is available in over 120 cities across the country. This greater accessibility makes opening a PNB Housing Fixed Deposit easy.
• Nomination Facility: The nomination of a Co-operative facility in PNB Housing Fixed Deposits is available as per NHB guidelines.

 Eligibility To Open a PNB HFL Fixed Deposit Account

The following entities are eligible to apply for a PNB Housing Fixed Deposits:

PNB Housing Fixed Deposits can be made in joint name(s) with a maximum number of three persons.

• Resident Indian citizen
• Hindu Undivided Family (HUF)
• Sole Proprietorships
• Partnership Firms
• Companies including group companies
• Family trusts
• Minors under natural/lawful guardian
• Charitable and Religious Trusts
• Association of Persons
• Co-operative Societies (excluding housing co-operative societies) incorporated in India.

How to Open a PNB HFL Fixed Deposit Account?

One can open a PNBHFL FD account either online or offline. You can do it online through the website or Mobile App.

Website

The following steps will help to open a PNB Housing Limited FD account through the website:

• Firstly, log in to the PNB Housing Finance Limited account.
• Secondly, under the ‘Deposit Scheme’ tab, select the ‘Term Deposits’ option.
• Thirdly, choose the type of fixed deposit and click on ‘Proceed’ to continue.
• Fourthly, provide all the deposit details, nominee information, and maturity instructions.
• Fifthly, accept the ‘Terms and Conditions’ upon reading them.
• Lastly, click on ‘Submit’ to complete the fixed deposit opening process.

Through Mobile App

PNB Housing Customer Portal

The following steps will guide in opening an FD account through PNBHFL Bank Mobile App:

• Firstly, download the PNB Housing Customer Portal App and log in.
• Secondly, select the Fixed Deposits or Term Deposits option to proceed.
• Thirdly, provide all the details for your fixed deposit, nominee information, and maturity instructions.
• Fourthly, accept the ‘Terms and Conditions’ upon reading them.
• Lastly, click on ‘Submit’ to complete the fixed deposit opening process.

Offline PNB HFL FD Opening

To open a PNB Housing Finance FD account offline, one has to either visit the nearest PNBHFL branch or request a call-back facility. If visiting the branch, fill the PNBHFL FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, PNBHFL will provide an FD receipt.

Documents Required to Open a PNB HFL Fixed Deposit Account

All investors must complete the mandatory one-time KYC process before opening the PNB Housing Fixed Deposit. Existing FD investors do not have to resubmit any documents.

Documents Required for Individuals

Following are the documents required by individuals for opening PNB Housing Finance Limited Fixed Deposit:

• One latest passport size photograph
• Self-attested copy of PAN card
• Self-attested copy of POA (proof of address) such as Aadhar card and POI (proof of identity) such as Voter ID card.

Documents Required for Non-Individual Fixed deposit

The following types of organizations can open a non-individual fixed deposit with PNB Housing Finance Limited, such as:

• Trusts, Associations, and Clubs
• Public/Private Ltd. Company, Co-operative Societies, Co-operative Banks
• Partnership Firm

They need to furnish the following documents for opening a non-individual fixed deposit:

• Trusts/Associations/Clubs:
  • Trust Deed
  • Registration Certificate
  • Copy of Resolution of Investment
  • Trust’s PAN Card Copy
  • Trust’s Address Proof
  • Specimen signatures of authorized persons
  • Photograph, PAN Card, address proof of signing authorities
• Public/Private Ltd. Company, Co-operative Societies, Co-operative Banks:
  • Copy of Memorandum & Articles of Association/Bye-laws
  • Copy of Resolution of Investment
  • Specimen signatures of authorized persons
  • Photograph, PAN Card, address proof of signing authorities
• Partnership Firm:
  • Declaration of partnership by partners
  • Name and address of partners
  • Specimen signatures
  • PAN Card copy of the firm

Points to Note for Investors:

• If your first interest due date falls within a week from the deposit date, then the interest will not be paid on that date. The interest for the first broken period will be carried over and paid in the next interest cycle.
• If the interest due date falls on a Sunday or a holiday, then PNBHFL pays interest on the next working day.
• Interest on cumulative deposits compounds annually on March 31^st after deducting any applicable tax.
• You should raise a closure request at least 7 days in advance for premature withdrawal.

PNB HFL Fixed Deposit Premature Withdrawal 

PNB Housing provides the provision of premature cancellation of your Fixed deposit when needed. Initially, there is a compulsory lock-in for 3 months from the date of deposit, after which you can withdraw your fixed deposit. However, the interest rate charged is lower than the initial agreed-upon FD interest rate.

The interest rate for premature withdrawals, applicable:

• If you make a withdrawal within six months from the date of deposit, the interest paid will be at 4% per annum.
• If you make a withdrawal after six months of the date of deposit, interest paid will be at 1% less than the FD interest rate. The applicable FD interest rate on public fixed deposits is considered only for the period for which the deposit was held.