SBI 5-year FD vs PNB 5-year FD: What will general and senior citizens get on Rs 8 lakh investment?
Check out the maturity corpus on a 5-year FD with the State Bank of India (SBI) and Punjab National Bank (PNB) for general and senior citizens on Rs 8 lakh investment.
State Bank of India (SBI) and Punjab National Bank (PNB) offer fixed deposit (FD) schemes of different interest rates. Both offer special FDs as well as traditional FDs such as 1-year, 3-year, and 5-year. Investment in the 5-year FD provides tax benefits under Section 80C of the Income Tax Act, of 1961. Both SBI and PNB offer additional interest rates to senior citizens in their 5-year FD compared to the rates they offer to general citizens. Therefore, we will explore the SBI and PNB 5-year FD and what a Rs 8 lakh investment in each FD will provide in maturity to general and senior citizens.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
What is FD?
Fixed deposit (FD) is one of the popular ways to invest money. They are non-market-linked investments with stable returns. FDs can be easily started in banks, offline, and online. It allows investors to invest a lump sum amount for a fixed period, earning a predetermined interest rate throughout the investment period.
SBI 5-year general citizen FD interest rate
The interest rate is 6.50 per cent for general citizens.
SBI 5-year senior citizen FD interest rate
The interest rate is 7.50 per cent for general citizens.
SBI 5-year fixed deposit tax benefits
Tax saving fixed deposit of SBI allows individuals to earn a competitive rate of interest on lump-sum contributions while simultaneously providing tax benefits under Section 80C of the Income Tax Act.
PNB 5-year general citizen fixed deposit rate
The bank offers a 6.50 per cent interest rate to general citizens in its 5-year FD.
PNB 5-year senior citizen FD interest rate
Punjab National Bank is offering a 7 per cent interest rate to senior citizens in 5-year FD.
PNB 5-year fixed deposit tax benefits
Deposits in the scheme will provide tax benefits up to Rs 1.50 lakh in a financial year.
SBI 5-year FD: Maturity amount for general citizens on Rs 8 lakh investment
The estimated corpus of Rs 11,04,336 will be generated on the investment of Rs 8 lakh in a 5-year fixed deposit for general citizens with 6.5 percent annualised rate of return.
SBI 5-year FD: Maturity amount for senior citizen on Rs 8 lakh investment
The estimated corpus of Rs 11,59,958 will be generated on the investment of Rs 8 lakh in a 5-year fixed deposit for senior citizens with 7.5 percent annualised rate of return.
PNB 5-year FD: Maturity amount for general citizens on Rs 8 lakh investment
With 6.5 per cent annualised rate of return for general citizens. Investors can get estimated corpus of Rs 11,04,336 in Punjab National Bank’s 5-year fixed deposit.
PNB 5-year FD: Maturity amount for senior citizen on Rs 8 lakh investment
With 7 per cent annualised rate of return for senior citizens in Punjab National Bank fixed deposit for 5 years. Investors can get estimated corpus of Rs 11,31,823.