Punjab National Bank (PNB), the country's second largest public sector lender, has launched an exciting fixed deposit scheme for depositors looking for safe investments and assured returns. This 444 days (approximately 14 months 19 days) special FD scheme of PNB has emerged as an ideal option for all those investors who want to earn maximum profits in a short period of time without locking their money in a long lock-in period of several years. According to the official interest rates of the bank, retail investors are being given attractive interest rates ranging from 6.60% to 7.40% per annum on this period. Amidst the Reserve Bank of India (RBI) keeping the repo rate stable and the competition among banks to raise CASA and term deposits, PNB has made this special bucket the most competitive. Generally banks are offering interest around 6.00% to 6.30% on FDs of 1 year to 3 years, but PNB has fixed a special premium slab of interest on tenure of exactly 444 days. If an investor makes an FD of 443 days or 445 days, he gets less interest, whereas if he chooses a tenure of exactly 444 days, he sees a significant jump in the interest rate. Complete mathematics of interest rates: How much return will ordinary, senior and super senior citizens get? Punjab National Bank has introduced clear and transparent interest rates based on age group for Domestic Term Deposits of less than ₹3 crore. The additional spread has been given to senior citizens and super-senior citizens with the aim of providing them higher returns on their social security and retirement capital. General Citizen (below 60 years of age): General public is getting interest of 6.60% per annum on FD of 444 days. This rate is much higher than PNB's normal 1 year (6.25%) and 2 years (6.30%) slabs. Senior Citizens (Age 60 years to 80 years): The Bank is offering an additional premium of 50 basis points (0.50%) over the normal rates for senior citizens aged 60 years and above. Under this, senior citizens will get direct interest of 7.10% per annum on deposits of 444 days. Super Senior Citizens (Age 80 years and above): PNB has assured a benefit of additional 30 basis points i.e. a total of 80 basis points (0.80%) for super senior citizens above 80 years of age. With this, the interest rate for super senior citizens reaches the highest level of 7.40% per annum. Additionally, investors who choose the non-callable 'PNB Uttam' scheme between ₹1 crore and ₹3 crore also get returns of up to 7.50% over the tenure. However, for common retail investors, a callable plan is best suited, which provides the facility of premature withdrawal if needed. How much maturity fund will be made on investment of ₹ 1 lakh, ₹ 5 lakh and ₹ 10 lakh on FD of 444 days? Interest in fixed deposits is calculated on quarterly compounding basis. This means that every three months the interest earned is added to the principal amount, making the effective yield higher than the stated annual rate. Let us understand how much total fund will be generated after 444 days on different deposits: Deposit Amount (Principal) General Citizen (6.60%) Senior Citizen (7.10%) Super Senior Citizen (7.40%) ₹1,00,000 ₹1,08,290 (Interest: ₹8,290) ₹1,08,940 (Interest: ₹8,940) ₹1,09,330 (Interest: ₹9,330) ₹2,00,000 ₹2,16,580 (Interest: ₹16,580) ₹2,17,880 (Interest: ₹17,880) ₹2,18,660 (Interest: ₹18,660) ₹5,00,000 ₹5,41,450 (Interest: ₹41,450) ₹5,44,700 (Interest: ₹44,700) ₹5,46,650 (Interest: ₹46,650) ₹10,00,000 ₹10,82,900 (Interest: ₹82,900) ₹10,89,400 (Interest: ₹89,400) ₹10,93,300 (Interest: ₹93,300) Thus, if a retired person or senior citizen deposits a lump sum amount of ₹10 lakh for 444 days, he gets an assured income of more than ₹89,000 to ₹93,000 sitting at home without any risk. Where does PNB's 444 days plan stand compared to SBI, Bank of Baroda and Canara Bank? PNB's 444 days scheme currently stands in the strongest position compared to other major public sector banks. State Bank of India (SBI) is giving 6.45% interest to general customers, 6.95% to senior citizens and 7.05% to super senior citizens on its special 'Amrit Vrishti' (Amrit Vrishti – 444 Days) scheme. In Bank of Baroda's 'Bob Square Drive' (BOB Square Drive – 444 Days) scheme, general citizens are getting 6.45% returns, senior citizens are getting 6.95% and super senior citizens are getting 7.05%. Indian Bank's 'Ind Secure' (444 Days) scheme offers 6.45% interest to general citizens, 6.95% to senior citizens and 7.20% to super-senior citizens. It is clear from this direct comparative study that PNB is giving a direct additional benefit of 15 basis points to general citizens and 20 to 35 basis points to super senior citizens. Hence PNB remains the first choice for those seeking both the security and high returns of a public sector bank. Interest Payment Options and Tax Rules: Importance of Form 15G/15H to avoid TDS. In this 444 day FD of PNB, customers get flexible interest withdrawal options as per their need: Cumulative Option: In this, principal and compound interest are available together only on maturity of 444 days. This is great for those who want to grow their capital quickly. Non-Cumulative Option: Pensioners or senior citizens who want regular income to meet their monthly or quarterly household expenses can choose monthly, quarterly or half-yearly pay-outs. Tax and TDS rules: The interest received on FD is not completely tax-free. According to the Income Tax Act, for ordinary citizens, if the total interest income from bank FD in a financial year exceeds ₹ 40,000, then the bank deducts TDS at the rate of 10%. Whereas for senior citizens, this exemption limit under section 80TTB is ₹ 50,000. If your total annual income is less than the Income Tax Exemption Limit and your tax liability becomes nil, you can submit Form 15G (for general citizens) or Form 15H (for senior citizens) to the bank. After submitting this form, the bank will not deduct any TDS on your interest income. Premature Withdrawal and Loan Facility: No hassle in case of emergency. PNB gives complete freedom of liquidity to its customers: Loan/Overdraft facility: If there is a sudden need of money during the FD period, you do not need to break the FD. You can avail up to 90% of your deposit instantly as a loan or overdraft (OD). Premature Closure: If you close the FD prematurely, then as per the rules of the bank, interest is paid at the rate applicable for that period after deducting a penalty of 1%. Auto-Renewal Caution: Check the maturity instructions carefully while booking an FD. If auto-renewal is active, then on completion of 444 days the bank will roll over the FD at the then prevailing normal rate. Therefore, it is safer to opt for the amount being directly credited to the savings account on maturity. How to open online and offline account in PNB 444 days FD? This special fixed deposit scheme with PNB can be easily availed in any state or city of the country—be you in Lucknow, Delhi, Patna, Bhopal, Chandigarh or Jaipur: Online mode (PNB ONE app or Net Banking): Open the 'PNB ONE' app on your mobile and login. Go to the 'Services' section on the home screen and tap on 'Deposits'. Select the option of 'Open Fixed Deposit'. Enter the deposit amount (minimum starts from ₹100). Select 'Days' in Tenure and enter exactly 444. Choose interest pay-out mode (Cumulative or Quarterly Payout). Enter the nominee details and your T-PIN and submit. Your digital FD receipt will be available for download immediately. Offline mode (by visiting the branch): If you do not use digital banking, then visit your nearest PNB branch and fill the 'Term Deposit Account Opening Form'. Also present Aadhar Card, PAN Card, two passport size photographs and age proof (for senior citizen benefits). 444 days FD receipt can be obtained instantly through check or transfer from savings account. Due to low risk, government guarantee and excellent returns of up to 7.40%, this scheme is currently proving to be an excellent option for the portfolio of fixed income investors.
