Enjoy Trade & Investment at one platform
PNB Recurring Deposits offer guaranteed, fixed returns with a monthly deposit as low as ₹100, and the rate locked in on day one never changes, regardless of RBI actions after that.
| What | Details |
| Interest Rate Range | 6.00% – 7.25% p.a. for general citizens |
| Senior Citizens (60+) | Additional 0.50% over general rate |
| Super Senior Citizens (80+) | Additional 0.80% over general rate |
| Minimum Deposit | ₹100 per month |
| Tenure Options | 6 months to 10 years |
| Best Rate Tenure | 1–3 years |
| Compounding | Quarterly – credited half-yearly in March and September |
| Rate Fixed? | Yes, locked on opening day, never revised |
| Loan Against RD | Up to 80–90% of RD balance without breaking the deposit |
| Early Withdrawal Penalty | 1% off the applicable rate for the period held |
| TDS Threshold | Above ₹40,000 annual interest (₹50,000 for seniors), submit Form 15G/15H to avoid if below taxable limit |
| Tax on Interest | Fully taxable at income slab rate, no exemption |
Set up auto-debit to avoid the ₹1 per ₹100 missed instalment penalty and verify current rates on the official PNB site before opening, third-party tables may lag. The rates, rules, and small print around early withdrawal and TDS are worth understanding before the account is opened.
Punjab National Bank offers RD rates from 6.00% to 7.25% p.a. for general citizens. Senior citizens (60+) earn 0.50% extra; super seniors (80+) get 0.80% on top.
The PNB recurring deposit interest rate locks in on the opening day and does not move. RBI cuts, market shifts, none of it affects what was agreed. That is the whole point of choosing an RD.
PNB sits mid-tier among public sector banks for recurring deposit rates. SBI, Bank of Baroda, Canara Bank are broadly comparable. Private banks occasionally edge higher on specific tenures.
Real differentiation: branch network and government backing. For conservative depositors, that combination outweighs chasing the highest R interest rates in bank comparisons by a fraction of a percent.
Minimum deposit: Rs. 100 per month. No lower barrier exists among scheduled banks.
Loan facility: Borrow up to 80-90% of the RD balance without breaking the deposit. Savings keep compounding while the loan handles a temporary cash need.
The PNB RD scheme covers 6 months to 10 years. Short parking, goal-based saving, and long-term corpus building all within one product structure.
M = R × [(1 + i)^n – 1] / (1 – (1 + i)^(-1/3)), where M is maturity, R is the monthly instalment, i is the rate divided by 4 (quarterly), and n is the number of quarters.
1. Principal Amount: Monthly instalment amount. Rs. 2,000 per month over two years builds a corpus that earns meaningfully. Principal is the total of all instalments across the tenure.
2. Tenure: 6 months to 120 months. PNB’s best PNB recurring deposit interest rate sits in the 1-3 year range.
3. Interest Rate: Rate applicable on opening day. For current PNB RD interest rates, use the official PNB deposit rate page. Third-party tables may lag.
4. Compounding Frequency: PNB compounds quarterly, credits half-yearly in March and September.
Example: Rs. 2,000 monthly for 2 years at 7% = approximately Rs. 51,640 at maturity. Deposits: Rs. 48,000. Interest: Rs. 3,640.
Current indicative rates as per latest available data:
| Tenure | General Citizens | Senior Citizens |
| 6 months to < 1 year | 6.00% – 6.25% | 6.50% – 6.75% |
| 1 year to < 2 years | 6.40% – 6.80% | 6.90% – 7.30% |
| 2 years to < 3 years | 6.50% | 7.00% |
| 3 years to 5 years | 6.50% | 7.00% |
| 5 years to 10 years | 6.00% – 6.25% | 6.50% – 7.05% |
Verify on the PNB official site before opening. Rates are revised periodically.
Government Policies: RBI repo rate is the primary lever. Rate hikes push PNB Bank interest rates up; cuts bring them down. PNB, as a public sector bank, tracks RBI signals closely.
Economic Conditions: Inflation, banking system liquidity, and credit demand all affect sustainable deposit rates.
High inflation = higher deposit rates historically. Easy liquidity periods, like post-2020, pushed rates down across the sector.
Flexible Savings Plan: Rs. 100 minimum, no cap. The PNB RD scheme works at any income level. Salary increases? Open additional RDs.
Regular Income Generation: Interest is not monthly, but the guaranteed maturity payout is predictable. Stagger multiple RDs with different maturity dates for a systematic payout structure with zero market risk.
Choose the Right Tenure: Best Punjab National Bank RD interest rate sits in the 1-3 year range. Captures strong returns without a decade-long lock-in.
Auto-Deduction Feature: Standing instruction to debit monthly. Missed instalments cost Rs. 1 per Rs. 100 per month. Auto-debit removes that risk.
RD interest is tax-free. No. Taxable at the investor’s income slab rate. TDS kicks in above Rs. 40,000 annual interests (Rs. 50,000 for seniors). Form 15G or 15H avoids it if the income is below the threshold.
The monthly instalment cannot be changed; it is fixed at opening. Close and reopen to change it.
Early withdrawal has 1% penalty on the applicable rate. Small but impactful.
1. Online Application Process: Existing PNB customers: PNB internet banking, deposits, Open Recurring Account. Set tenure, instalment, and standing instruction.
New customers: savings account at the branch first, then RD online or at the branch.
2. Required Documentation: Existing with complete KYC: no fresh documents. New customers: PAN, Aadhaar, address proof, and a photograph.
3. Initial Deposit: Rs. 100 minimum. First instalment debits on opening. Subsequent instalments follow the standing instruction date.
Fixed rate, quarterly compounding, half-yearly credit, 1% early exit penalty. No surprises. For anyone building monthly savings discipline without market risk, run the numbers on the PNB RD calculator before committing to a tenure.
Rs. 100 per month in multiples of Rs. 100. Total RD deposits capped at Rs. 25 lakh per customer per month.
Fixed on opening day. Does not change regardless of RBI actions or bank revisions afterwards.
Yes, with a 1% penalty on the applicable rate for the period held.
1% off the applicable rate for the actual period held. A 7% RD closed early gets 6% applied instead.
Compounds quarterly, credited half-yearly in March and September.
None. Fully taxable at the income slab rate. TDS above Rs. 40,000 annually (Rs. 50,000 for seniors). Form 15G or 15H avoids deduction if income is below the taxable limit.
Use the PNB RD calculator. Or the formula M = R × [(1+i)^n–1] / (1–(1+i)^(-1/3)), where R is the monthly instalment, i is the quarterly rate, n is the number of quarters.
Rate comparisons across banks, scenario modelling across tenures, TDS implications flagged upfront: that is what a good platform delivers. Jainam Broking Limited positions RD savings within the broader financial plan, including how fixed-income products interact with equity exposure and tax obligations.
Get the link to download the App
