Punjab National Bank (PNB Fixed Deposit Scheme) has removed the premature withdrawal penalty (FD No Premature Penalty) for investors of a special FD scheme. With this, investors can use the money whenever needed by breaking the FD without paying any penalty.
Generally, banks charge customers an average penalty of 1 per cent or more for breaking FDs in the middle or withdrawing deposits prematurely. Punjab National Bank will not charge any penalty or fine on premature withdrawal from investors of its Sugam Fixed Deposit Scheme (PNB Sugam Fixed Deposit Scheme).
PNB allows its depositors to withdraw any amount before maturity. PNB recently announced that it has decided to cap the maximum investment limit per customer at Rs 10 lakh under the PNB Sugam Fixed Deposit scheme.
No penalty for premature withdrawal
Premature withdrawal is allowed to the investors of PNB Sugam Fixed Deposit Scheme. Under partial withdrawal, investors will get this benefit only if they do a minimum transaction of Rs 1000 per transaction. According to PNB’s website, the value of the FD deposit receipt (principal amount) will decrease accordingly. If an investor wants to withdraw the entire deposit amount before maturity, then there will be no penalty.
PNB Easy Fixed Deposit Interest Rates
The interest rate on PNB Sugam Fixed Deposit is based on the deposit bucket and tenure. The bank operates 3 deposit buckets, which include deposits below Rs.2 crore, deposits from Rs.2 crore to Rs.10 crore and deposits from Rs.10 crore to less than Rs.100 crore. Investors may note that if there is any change in the amount bucket due to partial withdrawal of the deposit, the interest rate applicable to the new amount bucket of the deposit will be effective from the date of withdrawal.
The interest rate of PNB Sugam Fixed Deposit is according to different periods, which has been fixed from 4.50 percent to 7.25 percent. The bank is offering an interest rate of 7.25 per cent to common citizens and 7.75 per cent to senior citizens on PNB Sugam FD for a period of 666 days.
Option to receive interest amount monthly or quarterly
The investor of PNB Sugam Fixed Deposit has the option of withdrawing the interest amount monthly, quarterly or at maturity. Interest is paid quarterly on compounding basis if the period of deposit with the bank is 6 months and above.
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