Punjab National Bank ( PNB Fixed Deposit Scheme) has removed 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 an average penalty of 1 per cent or more from the customers for breaking the FD in the middle or withdrawing the deposit before time. Punjab National Bank will not charge any penalty or fine on premature withdrawal for the 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.
There will be no penalty on premature withdrawal
Investors of PNB Sugam Fixed Deposit Scheme are allowed premature withdrawal. Under partial withdrawal, investors will get this benefit if they make a minimum transaction of Rs 1000 per transaction. According to PNB’s website, the value of FD deposit receipt (principal amount) will be reduced accordingly. If an investor wants to withdraw the entire deposit amount before maturity, then no penalty will be levied.
PNB Sugam Fixed Deposit Interest Rates
The interest rate on PNB Sugam Fixed Deposit is based on the deposit amount bucket and tenure. The bank operates 3 deposit amount buckets, which include deposits below Rs.2 crore, deposits from Rs.2 crore to Rs.10 crore and deposits above Rs.10 crore to less than Rs.100 crore. Investors may note that if there is a 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.
PNB Sugam Fixed Deposit interest rate is according to different tenure, which is fixed from 4.50 percent to 7.25 percent. On 666 days tenure of PNB Sugam FD, the bank is giving 7.25 percent interest rate to general citizens and 7.75 percent interest rate to senior citizens.
Option to receive monthly or quarterly interest amount
The investor of PNB Sugam Fixed Deposit has the option of withdrawing the interest amount monthly, quarterly or at maturity. If the period of deposit with the bank is 6 months and above then interest is paid on compounding basis on quarterly basis.
