Start investing in fixed deposits based on various categories provided by top banks
Punjab National Bank offers a wide range of schemes with high fixed deposit interest rates and minimum risk. Following are some of the key features of PNB bank fixed deposit account:
The PNB FD calculator is an easy-to-use online calculator that helps you in estimating the maturity value and wealth gained in the form of interest. You need to provide a few details of your investment in Punjab National Bank fixed deposit. Such details are investment amount, rate of interest, tenure, payout period, and compounding frequency. The calculator will take this information as input and process it. It will provide the estimated interest amount as an output.
You can easily adjust any of these input values and get the maturity and interest amount as an output. You can use this calculator to check whether the investment option fulfills your investment goals or not.
To use the PNB FD calculator you need to provide a few details as an input. The calculator will process the input details and provide the output. The calculator provides a graphical and tabular representation of the maturity value and the wealth gained on a yearly basis. Moreover, the tabular representation provides the opening balance, interest earned, and closing balance for every period till maturity.
You can use the Punjab National Bank FD calculator in 2 different ways, firstly the investment amount approach and secondly the target amount approach.
With this approach you need to provide the investment amount to estimate the maturity value. This method is useful if you already have an investment amount in mind. Let’s say you have just received your bonus and you want to invest this amount in a fixed deposit. In such a case this method is useful.
Follow the following steps to use the investment amount approach:
You can use the target amount approach if you want to estimate the investment amount on FD based on a target maturity value. So here you know the target maturity amount you want to earn at the end of the tenure but you don’t know how much to invest today. Well, with the help of our PNB fixed deposit calculator you can easily know the investment amount and the interest to be earned on such an investment amount.
PNB FD interest rates is calculated using 2 methods, firstly simple interest and secondly compound interest. The selection of which method depends on the tenure of the fixed deposit. Under both methods, the interest amount depends on multiple factors like interest rate, tenure, payout frequency, and compounding frequency.
Simple interest is the interest earned on the investment amount for a given period of time at a predetermined interest rate. In case the tenure of PNB FD is less than 181 days or 6 months then simple interest is applicable.
Interest = (P * R * T)/ 100
P = Principal amount of fixed deposit investment
R = Rate of FD Interest (%)
T = Tenure of FD investment
Let us understand the calculation with the help of an example
Mr. Amar invests Rs 400,000 in PNB fixed deposit on 1st March 2021. The investment is for 60 days at an interest rate of 8% per annum.
P (the investment amount) = Rs 4,00,000
R (rate of interest) = 8% per annum
T (tenure) = 60 days
Simple interest = (P * R * T)/ 100
= (Rs 4,00,000 * 8 * 60 days) / 100 * 365 days
= Rs 5,260
Maturity amount on FD = Principal Investment Amount + Interest Earned
= Rs 4,00,000 + Rs 5,260
= Rs 4,05,260
Compound interest is the interest earned on the principal amount invested and the interest earned. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested.
In case the tenure of the PNB fixed deposit is more than 181 days or 6 months then compound interest is applicable. Under compound interest, the interest earned in the previous period is added to the opening balance of the current period. Hence, a higher compounding frequency, lower payout, and higher tenure lead to higher interest amounts. Tenure is the most important influencing factor in calculating the compound interest. We can say that an FD with compounding interest is a better investment option than an FD with simple interest.
A = P (1+r/n) ^ (n * t)
A = Maturity Amount
P = Principal amount invested
r = Rate of Interest (in decimals)
n = number of compounding in a year
t = number of years
Mr. Ajay invests Rs 80,000 for a period of 4 years at an interest rate of 7% per annum compounded quarterly.
Principal amount of investment = Rs 80,000
Interest Rate = 7% per annum compounded quarterly
Number of compounding in a year = 4 (once every 3 months)
Number of years of investment is 4 years
A = 80,000 (1+0.07/4) ^ (4*4)
A = Rs 85,748
Interest amount = Rs 85,748 – Rs 80,000 = Rs 5,748
To understand how many FD investments will double in PNB let us take an example. If you are earning a post-tax interest of 8.70% per annum on your PNB fixed deposits then the amount will double in 8.27 years approximately. To estimate the time in which the FD will double You can use the rule of 72. That is, the time taken for a fixed deposit to double is (72/post-tax FD interest rate per annum).
Yes, an investment in PNB FD is safe and secure. The interest on Punjab National Bank FD is fixed and guaranteed. The interest rates are not affected by the market conditions and fluctuations, This makes FD investment one of the most secure investment tools. Moreover from the beginning of the investment, you will be aware of the maturity amount and interest earnings. Further, Punjab National Bank Fixed Deposit carries a FAA+/negative rating from CRISIL. The Deposit Insurance and Credit Guarantee Corporation insures every fixed deposit up to Rs 5 lakh in PNB. Hence, any default in repayment of the maturity value will be covered by the DICGC.
Yes, you can get monthly interest on PNB Housing fixed deposits. Punjab National Bank offers a periodic payout of interest on con-cumulative fixed deposits. You can choose to receive an interest income on a monthly, quarterly, half-yearly, yearly basis. This way you can earn a regular income through PNB fixed deposits.
The highest Punjab National fixed deposit interest rate is 5.30% for a regular investor for the tenure of 5-10 years. Also, for the same tenure, the senior citizen FD interest rate is 5.80%. Returns from PNB Bank fixed deposits can be calculated using PNB Bank FD calculators. One can use Scripbox’s PNB Bank fixed deposit calculator to calculate an FD investment’s maturity amount.
PNB offers loans against both domestic and NRE deposits. PNB offers up to 95% of the deposit amount as a loan. The loan interest rate is around 4-6.3%. Moreover, the tenure of the loan is limited to the tenure of the FD.PNB offers loans such as loans against property, business loans and education loans against their FD.
PNB allows premature withdrawal of their FDs. However, it charges a penalty for premature withdrawal. Punjab National bank deducts 1% interest from the FD interest before paying the investor’s complete interest.
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