pnb housing
February 25th, 2020

Features of Fixed Deposit: Get Maximum Returns of FD

Blog Seprator

When it comes to investing your savings, fixed deposits turn out to be a natural choice for many. For decades, it continues to be one of the preferred choices of investment and is considered a sound investment avenue.

So, let us examine all the features that make it an evergreen investment option.

Guaranteed Rate of Return

Once the funds are invested in a fixed deposit, the depositor is assured of receiving the stated rate of return at maturity. 

Financial institutions also offer an FD calculator, which helps to ascertain the value of the investment at the end of tenure.

Greater Returns for Senior Citizens

Financial institutions offer high fixed deposit interest rates for senior citizens, which is generally 0.25-0.50% higher than regular FD rates. This makes fixed deposits very appealing for senior citizens to park their life savings and generate a regular source of income.

Flexible Tenure

The FD tenure ranges between 7 days to 10 years, giving enough flexibility to depositors to decide the tenure of the FD account. Further, the depositor can also extend the tenure of the FD for the same period or as per the need at the time of maturity.

Mostly, depositors tend to set tenure of FDs on which interest rates offered is highest. 

Easy Liquidation

Fixed deposits can be easily liquidated by paying a small penalty to the financial institution, in case the funds are required before maturity.  Some financial institutions also provide loans against deposit facilities.

Get to Know about PNB Housing Finance FD Benefits

PNB Housing is an established name in the housing finance sector and is the 2nd largest deposit-taking HFC in India. It offers the competitive fixed deposit rates to its depositors across different tenures in the industry.

Some of the advantages of PNB Housing fixed deposits (FD) are:

High safety standard: The fixed deposits are rated CRISIL FAA+/Stable, which indicates high degree of safety standard and timely interest and principal repayment.

Higher interest rate: It offers higher fixed deposit rates across different tenure.

Benefits for Senior citizens: It offers 0.25% higher interest rate on deposits across all tenure.

Loan facility: PNB Housing offers loan against fixed deposits facility for up to 75% of the total principal deposit

No TDS on interest income: There is no tax deducted at source on interest income of up to Rs 5,000 per financial year

Premature withdrawal: Premature withdrawal of deposits are allowed after 3 months of compulsory lock-in

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