Recent turmoil in the stock market and interest rates revision by several public and private sector commercial banks of the country have made Fixed Deposit (FDs) one of the most lucrative and safest investment options over the years, although in recent months these may have suffer a bit. Now they are back. Fixed Deposit scheme of PNB Housing Finance Limited (PNBHFL), a subsidiary of Punjab National Bank (PNB), is offering an interest rate of up to 8.45%. These FD schemes also come with tax benefits and loan facility. 

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The PNB Housing Finance's FD comes in two variants - a) Regular deposits up to Rs 5 crore. b) Special deposit up to Rs 5 crore. In the regular deposit, the PNBHFL is offering 8.45% interest on a deposit of up to 60-71 months. For 36-47 and 48-59 month investments, the interest rates offered are 8.40%. Under the special deposit, the highest rate of interest of 8.45% is offered on a tenure of 44 months. 

Is it safe?

PNBHL has a robust network of branches across the country. The official website of the bank says, "PNB Housing provides safe investment options to various deposit schemes with attractive rate of interest."

- PNBHFL's FDs come with CRISIL FAAA/Stable (Highest Safety) & “CARE AAA” by CARE ratings. These show that the degree of safety regarding timely payment of interest and principal is very strong.

Tax benefit: On interest income up to Rs 5000, no tax is deducted at source. 

Loan Facility: One can get loan up to 75% of deposit from all branches of PNB Housing. 

PNBHFL allows premature cancellation after three months on the discretion of the company. 

 PNB Housing Finance Limited Fixed Deposit Interest Rated

Regular Deposit upto ₹5 crore
Tenure (Months) Cumulative Option* ROI (p.a.) Non-Cumulative Option ROI  (p.a.)
  ROI (p.a.) Tentative yield to maturity Monthly Quarterly Half Yearly Annual
12 – 23 8.30% 8.30% 8.00% 8.05% 8.10% 8.30%
24 – 35 8.30% 8.64% 8.00% 8.05% 8.10% 8.30%
36 – 47 8.40% 9.13% 8.10% 8.15% 8.20% 8.40%
48 – 59 8.40% 9.52% 8.10% 8.15% 8.20% 8.40%
60 -71 8.45% 10.00% 8.15% 8.20% 8.25% 8.45%
72 – 84 8.30% 10.23% 8.00% 8.05% 8.10% 8.30%
120 8.25% 12.09% 7.95% 8.00% 8.05% 8.25%
Special Deposit upto ₹5 crore
Tenure (Months) Cumulative Option* ROI (p.a.) Non-Cumulative Option ROI  (p.a.)
  ROI (p.a.) Tentative yield to maturity Monthly Quarterly Half Yearly Annual
15 8.30% 8.42% 8.00% 8.05% 8.10% 8.30%
22 8.35% 8.62% 8.05% 8.10% 8.15% 8.35%
30 8.30% 8.84% 8.00% 8.05% 8.10% 8.30%
44 8.45% 9.45% 8.15% 8.20% 8.25% 8.45%

* For cumulative option, interest rate is compounded annually on March 31st
# The yield mentioned is calculated using the first month of each tenure grid.

How to apply

A customer needs to submit fixed deposit application form along with required KYC documents and Cheque/DD at nearest PNB Housing branches and some HDFC Bank's collection centres. Online application is also allowed. 

Documents required: 

- Duly filled Application Form with a photograph
- Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
- Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)

- The minimum deposit amount is in PNBHFL is Rs 25,000 under Monthly income scheme and Rs 10,000 under rest of
the deposit schemes.

- The applicant needs to mention PAN number in the application form if the annual interest exceeds Rs 5000 per applicant. In case, PAN is not mentioned, the rate of TDS would be 20% as against 10% for cases where PAN is provided. 

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here properly before making an investment.