Fixed deposits are among the most popular investment options in India and it should form a part of your investment portfolio as well. Fixed deposit (FD) in India provides a risk-free return at a decent interest rate compared to similar investment tools in other countries. Here are the key reasons you should consider making it a part of your investment strategy:
- High safety assurance: PNB Housing’s fixed deposits carry an FAAA/Negative rating by CRISIL indicating low credit risk
- No tax deduction: No tax is deducted at source on interest earned on fixed deposits up to Rs. 10,000 in a given financial year.
- Loan facility: In case of an emergency, you can take a loan against your fixed deposits at a reasonable interest rate.
- Premature cancellation: Most fixed deposit schemes allow you to withdraw your money at any point after a brief lock-in period at a nominal penalty on the interest earned.
- Nomination: In accordance with the guidelines provided by the National Housing Bank, a nomination facility is available on all PNB Housing fixed deposits. In the case of a depositor’s unfortunate demise, both the repayment of the principal and the payment of any interest is made to the nominee.
- Higher interest rate for senior citizens: PNB Housing provides the best FD rates in India. It also offers a 0.25% higher rate on senior citizen fixed deposits.
Non-Resident Indians (NRIs) Fixed Deposit
As per the latest RBI regulations, NRIs and Persons of Indian Origin can open a fixed deposit in India only on a non-repatriation basis. That is, the interest earned on the fixed deposit in India and the principal deposit amount cannot be transferred back to the country of residence or converted to foreign currency. The maximum tenure available on such deposits is for three years. Both the repayment of the principal amount and the payment of any interest earned is done only through a credit to the depositor’s NRO account. Tax will be deducted on the interest earned, as applicable.
If you are looking to invest in fixed deposits in India:
- Visit the PNB Housing website
- Click on the “contact us for deposits” button
- Provide your contact details and the amount you would like to deposit
- PNB Housing would get in touch with you to take the process forward.
Alternatively, you can submit the duly filled application form along with the proof of address and age, and the deposit amount at any of the PNB Housing branches or at select PNB Housing collection centers listed here. If you are an NRI or PIO, you will also have to provide the details of your NRO account.
Depending upon your financial goals, You can choose between Cumulative and Non-Cumulative Deposits. In the case of former, the interest earned is credited back to your fixed deposit account on an annual basis and paid out on maturity. This allows you to build a corpus as the interest compounds over the years. On the other hand, a non-cumulative fixed deposit pays out the interest earned at an agreed-upon frequency allowing you to generate a regular income from your investments.